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DEVYANI - Swing Trade Analysis with AI Signals

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Rating: 3.5

Last Updated Time : 05 May 26, 03:11 pm

📊 Swing Trade Rating: 3.5

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

Analysis: Devyani International (DEVYANI) shows weak fundamentals but improving technicals. Current price (125 ₹) is above DMA 50 (114 ₹) but below DMA 200 (136 ₹), indicating short-term bullishness with medium-term resistance. RSI at 65.5 suggests mildly overbought conditions, while MACD (2.53) supports positive momentum. ROCE (7.53%) and ROE (2.20%) are weak, reflecting inefficiency. Quarterly PAT turned positive (8.56 Cr. vs -14.3 Cr.), showing recovery, with profit variation at 98.6%. Valuation metrics are unclear due to negative EPS (-0.28 ₹), but debt-to-equity ratio of 1.59 is high, adding financial risk. Industry PE stands at 67.3, suggesting premium valuations in the sector.

Optimal Entry Price: Around 118–122 ₹ (near DMA 50 support).

Exit Strategy if Holding: Consider booking profits near 132–136 ₹ unless momentum sustains above 140 ₹ resistance.

✅ Positive

  • Quarterly PAT recovery (8.56 Cr. vs -14.3 Cr.) shows turnaround.
  • Stock trading above DMA 50 indicates short-term bullishness.
  • FII holdings increased (+0.36%), showing foreign investor confidence.

⚠️ Limitation

  • Weak ROCE (7.53%) and ROE (2.20%).
  • High debt-to-equity ratio (1.59) adds financial risk.
  • Negative EPS (-0.28 ₹) raises valuation concerns.
  • DII holdings decreased (-0.11%), showing reduced domestic interest.

📰 Company Negative News

  • No major negative news reported, but high debt and weak efficiency metrics are concerns.

🌟 Company Positive News

  • Quarterly profit turnaround supports investor sentiment.
  • Foreign institutional investors increased their stake.

🏭 Industry

  • Industry P/E at 67.3 suggests Devyani trades in a premium sector.
  • QSR (Quick Service Restaurant) sector remains growth-oriented but cyclical, influenced by consumer demand trends.

📌 Conclusion

Devyani International is a moderately risky candidate for swing trading. Entry around 118–122 ₹ offers a safer risk-reward setup, while exit near 132–136 ₹ is advisable unless momentum sustains above 140 ₹. Profit recovery and FII support are positives, but weak efficiency metrics and high debt warrant cautious optimism.

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