Kotak Institutional Equities has upgraded its call on Devyani International to ‘Buy’ and raised the target price to ₹190, implying an upside of 22% from the current market price of ₹155.90 (as of April 11, 2025).
The brokerage expects FY2026E to be a stronger year for the quick-service restaurant (QSR) operator, driven by two key factors:
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A pickup in same-store sales growth (SSSG) aided by a weak base and marginal improvement in underlying demand, and
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Improved execution across brands and formats.
Kotak highlighted that it continues to like Devyani for its exposure to KFC’s scalable market opportunity in India, supported by the brand’s high recall and low penetration levels. The brokerage also sees upside optionality from Devyani’s other brands and growth bets.
Further, the presence of RJ Corp, with its appetite for portfolio expansion and a strong track record in value creation through both organic and inorganic growth, adds another layer of strategic strength to the company’s long-term outlook.
Disclaimer: The above views are of the brokerage and not of the author or the publication. Please make any and every investment decision after consulting your financial advisor.
