Accumulate Devyani International; target of Rs 180: KR Choksey

KR Choksey recommended accumulate rating on Devyani International with a target price of Rs 180 in its research report dated November 14, 2024.

Broker Research

November 15, 2024 / 11:12 IST

Accumulate

26 Aug, 2025 12:21

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KR Choksey's research report on Devyani International

For Q2FY25, DEVYANI’s revenue was INR 12,222 Mn, a growth of 49.1% YoY and a flat growth in QoQ, which is largely in line with our estimate. EBITDA for the quarter increased to INR 1,987 Mn by 25.2% YoY (-11.0% QoQ). EBITDA underperformed our estimates. EBITDA margin was under pressure due to higher-than-expected operational expenses (-202 bps YoY/-311 bps QoQ). Adj PAT for the quarter was at INR 30 Mn, lower by 99.9% YoY (-99.9% QoQ), which missed our estimate. We lower our FY25E/FY26E EBITDA estimates by 3.3%/2.5%, respectively, reflecting weaker-than-expected Q2FY25 performance. However, we expect a gradual pick-up in the overall demand environment in Q3FY25E on the back of the festive season and marketing initiatives driving higher footfalls.

Outlook

We maintained our EV/EBITDA multiple of ~23x to arrive at a target price of INR 180/share (previously: INR 185). Given the upside of 9.8% from the CMP, we reiterate our “ACCUMULATE” rating on the shares of Devyani International Ltd.

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