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 38.7% revenue growth including Thailand acquisition (excluding Thailand up 8.6% YoY) led by 11.3/36.3/16.5% increase across KFC/Costa Coffee/ Vaango.
However, Pizza Hut revenue de-grew by 4.5%. KFC brand contribution expanded 150 basis points to 19% while, Pizza Hut brand contribution contracted 480 bps to 4.4% on YoY basis.
Devyani International added 47 stores in Q4 FY24 taking the total count to 1,782 (inc. acquisition). The company maintained similar guidance of 275-300 stores in India. However, it remains cautious on Pizza Hut store addition.
We believe that overall profitability will remain under pressure in the near term given-
increased competition from new and existing players on Pizza Hut and
pressures mounting on KFC business.
We reduce our FY25/26E Ebitda estimates by 7.7/9.8% to factor in Q4 performance and subdued demand. Valuing the stock at 20 times FY26E enterprise value/Ebitda, we have arrived at a target price of Rs 151. Maintain ‘Sell' rating.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
