Choice Equity Broking has given Buy recommendation for Devyani International with a target price of Rs. 195 in its research report issued on Nov 24, 2021

Choice Equity Broking’s report on Devyani International

Devyani International Limited (DIL), incorporated in 1991, operates a chain of franchised quick service restaurants in India, Nepal, and Nigeria. The company’s core brands business include KFC, Pizza Hut, and Costa Coffee stores operated in India; International Business comprise KFC and Pizza Hut stores operated in Nepal and Nigeria. Other Business consists of its own brands, such as Vaango, and Food Street. As of Sept 30, 2021, its core brands business operated 705 stores, including 309 KFC stores, 351 Pizza Hut stores, and 45 Costa Coffee stores. Its international business operated 44 stores and Other Business operated 54 stores.


We assign ‘Buy’ rating on stock with target price of Rs.195 valuing the business at EV/EBIDTA 37x FY24E.

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