Devyani International rose 4.86% to Rs 145.75 after a foreign brokerage reportedly initiated coverage on the stock with a price target of Rs 240.
According to reports, the brokerage sees 37% FY20-24E EBITDA CAGR with aggressive store additions and and better economics.The price target Rs 240 is at 64.67% premium to the ruling market price.
On a consolidated basis, Devyani International reported a net profit of Rs 45.70 crore in Q2 FY22 as against a net loss of Rs 66.70 crore in Q2 FY21. Revenue from operations in the second quarter increased by 124% to Rs 516.1 crore from Rs 229.9 crore reported in the same period last year.
Devyani International is the largest franchisee of Yum! Brands Inc. (which operates brands such as KFC, Pizza Hut and Taco Bell) in India and are among the largest operators of chain quick service restaurants (QSR) in India, on a non-exclusive basis, and operate 803 stores across more than 175 cities in India, Nigeria, and Nepal, as of September 30, 2021. In addition, DIL is a franchisee for the Costa Coffee brand and stores in India.
Shares of Devyani International were listed on 16 August 2021. The scrip was listed at Rs 141 per share, at a premium of 56.67% to the initial public offer (IPO) price of Rs 90 per share.
The IPO of Devyani International was subscribed 116.71 times. The issue opened for bidding on 4 August 2021 and closed on 6 August 2021. The price band of the IPO was fixed at Rs 86-90 per share.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
