DEVYANI - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.4
| Stock Code | DEVYANI | Market Cap | 13,015 Cr. | Current Price | 106 ₹ | High / Low | 191 ₹ |
| Book Value | 12.4 ₹ | Dividend Yield | 0.00 % | ROCE | 7.53 % | ROE | 2.20 % |
| Face Value | 1.00 ₹ | DMA 50 | 124 ₹ | DMA 200 | 145 ₹ | Chg in FII Hold | -0.78 % |
| Chg in DII Hold | -0.32 % | PAT Qtr | 8.56 Cr. | PAT Prev Qtr | -14.3 Cr. | RSI | 30.9 |
| MACD | -5.64 | Volume | 27,54,800 | Avg Vol 1Wk | 39,41,681 | Low price | 103 ₹ |
| High price | 191 ₹ | Debt to equity | 1.59 | 52w Index | 3.35 % | Qtr Profit Var | 98.6 % |
| EPS | -0.28 ₹ | Industry PE | 62.4 |
📊 Devyani International (DEVYANI) shows weak fundamentals with negative EPS (-0.28), low ROCE (7.53%), and very low ROE (2.20%). Technical indicators are bearish (RSI 30.9, MACD -5.64, price below 50 & 200 DMA). High debt-to-equity (1.59) and declining investor confidence further weaken sentiment, making it a poor candidate for swing trading in the short term.
💡 Optimal Entry Price: Around ₹104–108, near strong support levels.
📈 Exit Strategy (if already holding): Consider exiting near ₹120–125 if recovery occurs, or cut losses if price falls below ₹103 decisively.
Positive
- Quarterly PAT improved from a loss (-₹14.3 Cr.) to a profit of ₹8.56 Cr.
- Book value of ₹12.4 provides some valuation support.
- Large market cap (₹13,015 Cr.) ensures liquidity.
Limitation
- Negative EPS (-0.28) indicates weak profitability.
- Low ROCE (7.53%) and ROE (2.20%) show poor capital efficiency.
- High debt-to-equity ratio (1.59) raises financial risk.
- Price trading below both 50 DMA (124) and 200 DMA (145), confirming bearish trend.
Company Negative News
- FII holdings decreased (-0.78%), showing reduced foreign investor confidence.
- DII holdings also declined (-0.32%), reflecting weak domestic sentiment.
- Technical weakness with RSI near oversold zone and MACD negative.
Company Positive News
- Quarterly PAT turnaround from loss to profit indicates operational improvement.
- Strong brand presence in QSR (Quick Service Restaurants) sector provides long-term potential.
Industry
- Industry P/E at 62.4 is high, reflecting premium valuations in the QSR sector.
- Food services industry remains growth-oriented but cyclical, influenced by consumer demand and discretionary spending.
Conclusion
⚖️ Devyani International is fundamentally weak and technically bearish, with high debt and poor efficiency ratios. While recent profit turnaround is positive, swing traders should be cautious. Entry near support (~₹104–108) and exit near resistance (~₹120–125) is advisable, but conservative traders should avoid until technical indicators improve and earnings stabilize.