This QSR Sector Stock Trading 8.83% Away From 52-Week Low, KR Choksey Sees 50% Upside, Buy

KR Choksey is bullish on Devyani International Ltd, a midcap QSR sector stock. The brokerage recommends buy the stock with a target price of Rs 230 apiece for a return of up to 50% considering the current market price of the stock. According to the brokerage, Faster store rollout and innovative campaigns to drive revenue growth. Below are the key details about the stock:

Stock Outlook & Returns

The last traded share price of Devyani International on NSE is Rs 153.45 apiece. The stock is trading 8.83% away from its 52 week low of Rs 141 apiece. The stock's 52 week high is Rs 215 apiece. The stock was listed on 16 August 2021 on NSE.

The stock has gained 24.25% since the date of listing. However, it has fallen 2.82% in 1 week, 3.13% in 1 month and 16.42% in 3 months, respectively. It has declined 8.72% in the past 1 year. It has a market capitalisation of Rs 18,486.68 crore.

KR Choksey recommends buy the stock for a target price of Rs 230/share

According to the brokerage, DIL has shown strong performance in a seasonally soft quarter and continues to add stores in core brands, which is helping the company grow at a faster rate. Innovation remains a strong pillar of their growth strategy across the brand portfolio. The current consumer demand slowdown is transitory in nature and once inflation stabilises, consumer spending is expected to improve. This will help the company to improve the revenue and profitability.

DIL remains focused on refining their processes, maintaining product quality, and enhancing their execution capabilities. DIL's focus on new products and innovative campaigns will help the company to register healthy growth in the near term. The company store addition are in line of its expansion plans, adding 250 stores every year untill FY26E.

"We expect Devyani International to continue expanding its presence into new geographies and penetrate deeply into existing cities. We continue with "BUY" rating on the stock with target price of INR 230 per share, giving 50.3% upside from the current level," the brokerage has said.

 

Disclaimer

The stock has been picked from the brokerage report of KR Choksey. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.