Devyani International Q2 Results Review - Demand Conditions Remain Subdued: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Devyani International Ltd.’s organic revenue was in line with our estimate. The company reported 49.1% revenue growth including Thailand acquisition (ex-Thailand up 7.3% YoY) and led by revenue growth of 6.8/0.4/41.6/36.17% across KFC/ Pizza Hut/ Costa Coffee/ Vaango. The company added 85 stores in Q2 FY25 taking the total count to 1,921 (incuding Thailand) and aspires to open 100-110/60-70 new KFC/PH stores in CY25E. It is on track to achieve ~ 2,000 total stores by the end of FY25E. Further, the company signed Master Franchise Agreements for three new brands in Q2FY25 - Tealive, New York Fries and Sanook Kitchen. Devyani’s operating performance was below our estimate, due to lower operating leverage. Though base for Pizza Hut and KFC would become favorable in the ensuing quarters, overall slowdown is expected to drag profitability down. We have reduced our FY25/26E Ebitda estimates by 5.8/4.5% to factor in Q2 performance and downgraded our rating to ‘SellL’ valuing at 18x (30% premium to Sapphire) FY27E EV/Ebitda with revised target price of Rs 160 (Rs 187 earlier)..Click on the attachment to read the full report:.Jubilant FoodWorks Q2 Results Review - Sustained LFL Growth; Maintain 'Buy': Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Devyani International Q2 Results Review - Demand Conditions Remain Subdued: Dolat Capital

Though base for Pizza Hut and KFC would become favorable in the ensuing quarters, overall slowdown is expected to drag profitability down, says the brokerage.

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Devyani International Q2 Results Review - Demand Conditions Remain Subdued: Dolat Capital

Though base for Pizza Hut and KFC would become favorable in the ensuing quarters, overall slowdown is expected to drag profitability down, says the brokerage.

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