Devyani International Limited, the operator behind popular fast-food brands like KFC, Pizza Hut, and Costa Coffee, has been drawing a lot of attention in the stock market. As of March 13, 2025, the company’s share price stood at ₹152.39, reflecting a 2.11% drop from its previous close of ₹155.67.
Despite this short-term dip, market experts remain optimistic about its future potential. A consensus among 25 analysts has placed an average 12-month price target at ₹188.84, indicating a potential upside of nearly 24% from the current levels. Some even predict a high of ₹230, while the most conservative estimates go down to ₹142.
Analyst Recommendations – Should You Buy?
Leading brokerage firm Motilal Oswal has initiated coverage with a ‘Buy’ rating, setting a target price of ₹215. They believe Devyani International has strong growth prospects, citing its aggressive expansion strategy as a major driver.
The company has been adding new outlets at a rapid pace, with 111 stores opened in just the third quarter of FY25. With plans to reach 2,000 stores by March 2025, experts see a bright future ahead, despite short-term challenges in consumer spending.
Financial Performance & Growth Outlook
Devyani International’s financials also paint a promising picture. In the December 2024 quarter, the company reported net sales of ₹1,294.40 crore, a massive 53.52% jump from the previous year.
While it recorded a small net loss of ₹0.49 crore, this is a significant improvement from the ₹9.62 crore loss in the same period last year. Its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 47.36% to ₹222.36 crore, showing positive operational momentum.
Should You Invest?
The stock has seen a short-term dip, falling 9.76% in the past week and 3.73% over the last month. However, analysts remain bullish in the long run, given the company’s strong expansion strategy and financial improvements.
Investors should consider both the potential for long-term growth and the risks associated with the highly competitive quick-service restaurant (QSR) industry. Factors like consumer demand, operational efficiency, and broader economic conditions will play a crucial role in determining its future success.
Final Verdict
While short-term market fluctuations may concern some, analysts believe Devyani International has strong fundamentals and a promising future. With an expanding store network and improving financials, it could be a great stock to watch for long-term investors.
