KR Choksey has given Buy recommendation for Devyani International with a target price of Rs. 230 in its research report issued on Feb 05, 2022

KR Choksey’s research report on Devyani International

Devyani International (DIL) reported revenue growth of 65% YoY/21% QoQ to INR 6,244 Mn in Q3FY22. KFC and Pizza Hut India revenues grew by 64% each. EBITDA registered growth of 68% YoY/20% QoQ to INR 1,478 Mn and EBIDTA margin improved by 39 bps YoY t0 23.7%. Gross margin improved to 71.4%. DIL reported Net Profit of INR 660 Mn (+40% YoY/41.6% QoQ). During Q3FY22, DIL opened 81 new stores taking total count to 884 store.

Outlook

We continue with “BUY” rating on the stock with target price of INR 230 per share valuing at 30x FY24E EBIDTA, giving 28.9% upside from current levels.

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