Emkay has given Buy on the stock with a revised price target (PT) recommendation for Devyani International with a target price of Rs. y is bullish on Devyani International has recommended buy on the stock with a revised price target (PT) of Rs. 210 in its research report issued on Jan 31, 2022
After years of sub-par and volatile return ratios, DIL’s RoIC is likely to surge to c.20% in FY22E, thanks to the remodeling of store formats. While store sizes have reduced, the average daily sales (ADS) have not. We model RoIC of 40% by FY25E. We initiate on DIL with a Buy rating and a Mar’23E TP of Rs 210, based on 42x FY24E EV/EBITDA, derived from a two-stage growth model. Slower pace of execution is key downside risk to our forecasts.