⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

DEVYANI - Swing Trade Analysis with AI Signals

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Rating: 2.6

Last Updated Time : 05 Feb 26, 02:16 am

Swing Trade Rating: 2.6

Stock Code DEVYANI Market Cap 14,320 Cr. Current Price 116 ₹ High / Low 191 ₹
Book Value 12.4 ₹ Dividend Yield 0.00 % ROCE 7.53 % ROE 2.20 %
Face Value 1.00 ₹ DMA 50 134 ₹ DMA 200 154 ₹ Chg in FII Hold -0.78 %
Chg in DII Hold -0.32 % PAT Qtr -14.3 Cr. PAT Prev Qtr 6.21 Cr. RSI 33.0
MACD -6.52 Volume 9,59,421 Avg Vol 1Wk 24,39,122 Low price 110 ₹
High price 191 ₹ Debt to equity 1.59 52w Index 8.00 % Qtr Profit Var -1,505 %
EPS -0.14 ₹ Industry PE 109

📊 Devyani International (DEVYANI) shows weak fundamentals with negative earnings, high leverage, and poor technical momentum. It is a risky candidate for swing trading, suitable only for highly cautious short-term trades near strong support levels.

Optimal Entry Price: 112–115 ₹ (near 52-week low support)

🚪 Exit Strategy if Holding: Consider exiting near 125–130 ₹ (short-term resistance zone) or if RSI moves above 45.

Positive

  • 💡 Large market cap of 14,320 Cr. ensures liquidity.
  • 📊 Strong industry P/E (109) suggests sector growth potential.
  • 📈 RSI at 33.0 indicates oversold conditions, which may trigger a short-term bounce.

Limitation

  • ⚠️ Negative EPS (-0.14 ₹) highlights weak profitability.
  • 📉 ROCE (7.53%) and ROE (2.20%) are very low, showing poor efficiency.
  • 🔻 Debt-to-equity ratio of 1.59 indicates high leverage risk.
  • 📊 Current price well below 50 DMA (134 ₹) and 200 DMA (154 ₹), reflecting technical weakness.
  • 📉 MACD (-6.52) signals bearish momentum.

Company Negative News

  • 📉 Decline in FII holdings (-0.78%) and DII holdings (-0.32%) shows reduced institutional confidence.
  • 📊 PAT dropped from +6.21 Cr. to -14.3 Cr., highlighting earnings deterioration.

Company Positive News

  • 📈 Oversold RSI levels may offer short-term recovery opportunities.
  • 📊 Strong industry demand in QSR (Quick Service Restaurants) sector provides long-term potential despite current weakness.

Industry

  • 🏭 Industry P/E at 109 is significantly higher than most sectors, reflecting strong growth expectations in QSR and food services.
  • 📈 Rising consumer demand for fast food and beverages supports long-term sector resilience.

Conclusion

🔎 Devyani International is fundamentally weak and technically bearish, with negative earnings and high leverage. Swing traders may cautiously enter near 112–115 ₹ and exit near 125–130 ₹. Monitoring RSI and MACD is crucial, as momentum indicators suggest limited upside unless a reversal occurs.

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