IIFL Securities's Stock Pick Today: Buy Devyani International with Target Rs 224

IIFL Securities recommends buying Devyani International's shares at the current market price of Rs 188.98. The brokerage firm has set a target price of Rs 224 for the stock, implying an upside potential of approximately 18.5%. The company is expected to benefit from the recovery in consumer spending and its strong brand portfolio, which includes KFC and Pizza Hut franchises in India. Devyani International's focus on store expansion and innovation is seen as a positive sign by IIFL Securities.

About Devyani International:

Devyani International is a leading quick-service restaurant (QSR) operator in India, with a portfolio of over 1,700 restaurants across 15 brands, including Pizza Hut, KFC, Costa Coffee, and Taco Bell. The company operates in over 100 cities across India, employs over 20,000 people, and has a significant presence in international markets like Nepal and Sri Lanka. Devyani International is a subsidiary of RJ Corp, the investment arm of Ravi Jaipuria Group. The company's recent financial performance has been strong, with revenue exceeding INR 1,500 crores in FY22 and a net profit of over INR 150 crores.

52 Week Price Trend:

Devyani International, with a current market price (CMP) of Rs 188.98, reflects a significant decline from its 52-week high of Rs 227.75. However, it has also recovered from its 52-week low of Rs 133.95. The company's stock performance may be attributed to various factors influencing the quick-service restaurant (QSR) industry, such as consumer spending patterns, competitive pressures, and macroeconomic conditions. Investors should carefully consider these factors and market trends before making investment decisions.

Stratzy's MOST Analysis:

Devyani International received a BB- rating from Stratzy's MOST framework, indicating medium fundamental risks. The framework assesses a company's management, outlook, safety, and trend. Based on these four pillars, Devyani's management, outlook, and trend were assessed as medium risk, while its safety was rated as low risk. This overall BB- rating suggests that Devyani has some fundamental weaknesses to consider before investing.

Fundamental and Technical information provided in this blog were last updated on 23 Aug, 2024

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