DEVYANI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | DEVYANI | Market Cap | 15,378 Cr. | Current Price | 125 ₹ | High / Low | 191 ₹ |
| Book Value | 12.4 ₹ | Dividend Yield | 0.00 % | ROCE | 7.53 % | ROE | 2.20 % |
| Face Value | 1.00 ₹ | DMA 50 | 114 ₹ | DMA 200 | 136 ₹ | Chg in FII Hold | 0.36 % |
| Chg in DII Hold | -0.11 % | PAT Qtr | 8.56 Cr. | PAT Prev Qtr | -14.3 Cr. | RSI | 65.5 |
| MACD | 2.53 | Volume | 96,98,003 | Avg Vol 1Wk | 1,94,77,701 | Low price | 91.6 ₹ |
| High price | 191 ₹ | Debt to equity | 1.59 | 52w Index | 33.3 % | Qtr Profit Var | 98.6 % |
| EPS | -0.28 ₹ | Industry PE | 67.3 |
📊 Devyani International (DEVYANI) shows weak fundamentals despite its large market cap of ₹15,378 Cr. ROE (2.20%) and ROCE (7.53%) are low, reflecting poor efficiency. Debt-to-equity at 1.59 highlights high leverage risk, while EPS (-0.28 ₹) remains negative, signaling weak profitability. Dividend yield is 0.00%, offering no income support. Quarterly PAT improved (from -14.3 Cr to 8.56 Cr), showing operational recovery, but overall earnings remain fragile. Valuation is difficult to justify with negative EPS and high industry P/E (67.3). Technicals show bullish momentum with RSI (65.5), MACD (2.53), and price trading above 50 DMA (114 ₹) but below 200 DMA (136 ₹).
🎯 Entry Zone: 110 ₹ – 115 ₹ (near 50 DMA support)
📌 Long-Term Holding: Risky due to weak fundamentals and high leverage. Suitable only for speculative exposure or short-term momentum trades. Long-term compounding potential is limited unless profitability improves significantly.
Positive
- Quarterly PAT recovery (+98.6%) from losses shows operational improvement.
- Price trading above 50 DMA indicates short-term bullish bias.
- FII holdings increased (+0.36%), showing foreign investor confidence.
Limitation
- Negative EPS (-0.28 ₹) highlights weak profitability.
- Low ROE (2.20%) and ROCE (7.53%) reflect poor efficiency.
- High debt-to-equity (1.59) increases financial risk.
- No dividend yield, reducing investor appeal.
- Price trading below 200 DMA (136 ₹), showing weak long-term trend.
Company Negative News
- Persistent weak profitability with negative EPS.
- High leverage raises financial risk concerns.
Company Positive News
- Quarterly PAT recovery from losses indicates operational turnaround.
- FII inflows (+0.36%) reflect foreign investor confidence.
Industry
- Industry P/E (67.3) is high, but DEVYANI’s negative EPS makes valuation unattractive.
- Quick-service restaurant sector has long-term demand drivers, supported by urban consumption trends.
Conclusion
⚠️ DEVYANI is financially stressed with weak efficiency, negative EPS, and high leverage. Entry around 110–115 ₹ may suit speculative traders, but long-term investors should avoid until profitability stabilizes. Upside toward 125–130 ₹ possible in momentum trades, with strict stop-loss below 108 ₹.
This structured HTML report captures Devyani’s speculative momentum opportunity but highlights its weak fundamentals and high leverage risks. If you’d like, I can extend this into a peer benchmarking overlay against other QSR players like Jubilant FoodWorks or Sapphire Foods to show relative positioning. Would you like me to prepare that next?