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DEVYANI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | DEVYANI | Market Cap | 13,469 Cr. | Current Price | 109 ₹ | High / Low | 191 ₹ |
| Book Value | 12.4 ₹ | Dividend Yield | 0.00 % | ROCE | 7.53 % | ROE | 2.20 % |
| Face Value | 1.00 ₹ | DMA 50 | 125 ₹ | DMA 200 | 146 ₹ | Chg in FII Hold | -0.78 % |
| Chg in DII Hold | -0.32 % | PAT Qtr | 8.56 Cr. | PAT Prev Qtr | -14.3 Cr. | RSI | 34.2 |
| MACD | -5.36 | Volume | 25,74,613 | Avg Vol 1Wk | 53,76,831 | Low price | 103 ₹ |
| High price | 191 ₹ | Debt to equity | 1.59 | 52w Index | 7.51 % | Qtr Profit Var | 98.6 % |
| EPS | -0.28 ₹ | Industry PE | 65.3 |
📊 Core Financials
- Revenue Growth: PAT improved (₹8.56 Cr vs -₹14.3 Cr), but overall earnings remain weak
- Profit Margins: EPS -₹0.28, negative profitability
- Debt Ratio: High leverage (Debt-to-Equity 1.59)
- Cash Flows: Pressured due to weak margins and high debt
- Return Metrics: ROCE 7.53%, ROE 2.20% — poor efficiency
💹 Valuation Indicators
- P/E Ratio: Not meaningful due to negative EPS
- P/B Ratio: ~8.8 (premium valuation)
- PEG Ratio: Not available, growth outlook uncertain
- Intrinsic Value: Current price ₹109 is near support (₹103), but fundamentals remain weak
🏢 Business Model & Competitive Advantage
- Quick-service restaurant operator with franchises like KFC, Pizza Hut, and Costa Coffee
- Strong brand portfolio and consumer recognition
- High debt reduces financial flexibility
- No dividend yield, reinvestment strategy focused on expansion
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹100–₹115 range (near support levels)
- Long-Term Holding: Risky due to weak profitability and high leverage
- Guidance: Suitable only for speculative investors betting on turnaround in QSR sector
✅ Positive
- PAT turned positive after losses in previous quarter
- Strong brand portfolio in QSR sector
- Domestic investor support with DII holdings up (+0.32%)
⚠️ Limitation
- Negative EPS indicates weak profitability
- High debt-to-equity ratio (1.59) raises financial risk
- Stock trading below DMA 50 & DMA 200, showing weak momentum
📰 Company Negative News
- Decline in FII holdings (-0.78%) shows reduced foreign investor confidence
- High leverage limits financial flexibility
🌟 Company Positive News
- PAT improved significantly from -₹14.3 Cr to ₹8.56 Cr
- Strong consumer brands provide long-term demand potential
🏦 Industry
- Quick-service restaurant sector with growing demand in India
- Industry PE at 65.3, but DEVYANI’s negative EPS makes valuation unattractive
- Sector growth supported by rising urbanization and consumer spending
🔎 Conclusion
- DEVYANI offers strong brand presence but weak financial fundamentals
- High debt and negative EPS limit near-term upside
- Entry near ₹100–₹115 only suitable for speculative investors
- Best suited for portfolios seeking QSR exposure with high risk tolerance