KR Choksey has given Buy recommendation for Devyani International with a target price of Rs. 230 in its research report issued on May 06, 2022

KR Choksey’s research report on Devyani International

Devyani International (DIL) reported revenue growth of 36.4% YoY/(5.4%) QoQ to INR 5,907 Mn in Q4FY22. Pizza Hut India revenues grew by 41% and KFC’s revenue grew by 39% YoY. The core brands displayed resilient performance despite disruptions from third wave of the pandemic. For the full year FY22, the revenues from operations stood at INR 20,840 Mn, a growth of 83.6% YoY. EBITDA for the quarter stood at INR 1,433 Mn, an increase from 1,184 Mn in Q4FY21. Gross profits for the quarter were at INR 4,209 Mn with margins at 71.3% in Q4FY22. The brand contribution for DIL improved by 50 bps to reach 21.2%. Net Profit for the quarter grew from INR 234 Mn to INR 759 Mn. For the full year FY22, PAT stood at INR 1,551 Mn compared to a loss of INR 813 Mn. During Q4FY22, DIL opened 54 new stores taking total count to 938 stores. DIL added highest ever 246 stores during FY22.


We continue with “BUY” rating on the stock with target price of INR 230 per share valuing at 30x FY24E EBIDTA, giving 42.8% upside from current levels.

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