Devyani’s Stock on the Rise – But Should You Buy? Here’s What Experts Say

March 27, 2025: Devyani International Ltd., one of India’s leading operators of quick-service restaurants (QSR) and the largest franchisee of Yum Brands in the country, has seen a steady increase in its stock value, but analysts are divided on its future price trajectory.

As of today, Devyani’s stock is trading at ₹149.85, showing a slight 0.79% uptick from the previous close of ₹148.69. The stock has seen a rollercoaster of prices, fluctuating between ₹142.45 and ₹222.74 over the past year. For investors tracking its progress, here’s a breakdown of what analysts are saying about its future potential.

Analyst Price Targets: A Mixed Bag

According to data from 24 market analysts, Devyani’s stock has an average target price of ₹188.84. This suggests a potential rise of 27% from its current level. However, estimates vary widely, with some analysts predicting a high target of ₹230.00, while others see it dipping as low as ₹142.00.

Trendlyne also echoes a similar sentiment, with an average target of ₹183.75, which reflects a 22.98% upside from the current trading price of ₹149.41. The company’s stock has shown considerable growth over the years, yet it faces some challenges in the near term.

On the flip side, WalletInvestor takes a more conservative approach, forecasting a price of ₹155.13 in the next 14 days. While this points to some growth, it’s much more cautious, with the potential for the stock to fluctuate between ₹130.05 and ₹155.22.

The Growth Story and Challenges Ahead

Over the past decade, Devyani has enjoyed impressive growth, with a compound annual growth rate (CAGR) of 22% in sales over the last five years. However, the company’s profitability has hit a rough patch, with profits plummeting by 88% in the trailing 12 months.

While the long-term growth potential looks positive, the recent decline in profitability raises concerns for short-term investors. As such, analysts are urging caution, advising investors to stay updated on the company’s quarterly performance and broader market conditions before making any significant investment moves.

Key Takeaways for Investors

With mixed signals from analysts, investors should tread carefully when considering Devyani International’s stock. The company’s solid growth history is undeniable, but the recent profit slump is something to keep an eye on. If you’re thinking of investing, it’s crucial to assess your risk tolerance and stay informed about upcoming earnings reports and market trends.

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