Devyani International Ltd. share price target

Devyani International (DIL) reported revenue growth of 44.8% YoY/6.1 QoQ to INR 7,474 Mn in Q2FY23. The core brands continue to display resilient performance despite continued retail inflation impacting consumer demand to some extent.

Growth traction continues with recovery in demand environment. Devyani International reported revenue growth of 99.8% YoY/19.3 QoQ to INR 7,047 Mn in Q1FY23 driven by revival in demand and strong traction in dine-ins. Pizza Hut India revenues grew by 71% and KFC’s revenue grew by 109% YoY.

DEVYANI delivered a strong performance in 3QFY22, with an improvement on all operating metrics. Both KFC and Pizza Hut (PH) saw a sequential improvement in ADS to INR124k and INR47k, respectively, despite the addition of a large number of stores in the past five quarters. While strong demand tailwinds in 3QFY22 boosted KFC's ADS, the same may normalize going forward. However, the gradual uptick in ADS for PH is likely to continue on account of the brand's focus on the delivery channel. The company delivered a pre-Ind AS EBITDA of 16.4% in 3QFY22 (up 430bp...

Growth through expansion

Devyani International Ltd. (DIL) is an associate company of RJ Corp, the largest bottling partner of food and beverages (F&B;) major Pepsico, and has interests in the Indian retail F&B; sector. It is the largest franchisee of Yum Brands, operating core brands such as Pizza Hut, KFC, Costa Coffee besides its own brands such as Vaango, Food Street, Masala...

165 Equity Shares and in multiples thereof. Public issue of 204,222,219 Equity shares of Face value Rs. 1 each, (Comprising of fresh issue of 48,888,889 Equity Shares* (Rs. 440 cr.) and Offer for Sale of...

India's QSR to grow at ~12% over next five years The Indian QSR industry has grown at a CAGR of 3% in the last five years to US$40 billion (bn) in 2020. Further, it is likely to grow at a higher rate of ~10% to become ~US$65 bn industry by 2025. Rapid growth in QSR will be aided by increased urbanisation supported by a younger population with rising income levels and excess disposable income. Also, QSR is expected to experience a rise in number of transactions and average transaction amount due to the short service time at an affordable price offered by QSR....