Devyani International share price hits new-life high amid heavy volumes; stock up 14% intraday

The shares of the quick-service restaurant (QSR) — Devyani International — have jumped over 14 per cent and hit a new all-time high of Rs 183.7 per share on the BSE intraday trade on Wednesday on the back of huge volumes. It breached the previous high of Rs 171 per share touched on November 18, 2021.

An operator of KFC and Pizza Hut joints, Devyani International had started its stock market journey on August 16, 2021, with a nearly 56 per cent higher premium of Rs 141 per share on the bourses.

Moreover, the Global Index provider, MSCI, had Devyani International in MSCI India Domestic Small Cap Index from November 30, 2021.

At around 02:59 pm, the stock was trading almost 10 per cent higher at Rs 176.4 per share versus a 1.7 per cent rise in the S&P BSE Sensex. Since its listing, the counter has surged over 61 per cent. 

In the September-end quarter, Devyani International had posted strong earnings with a consolidated profit of Rs 46.6 crore, as against a net loss of Rs 65.5 crore in the same period a year ago. While its revenue from operations came at 124 per cent higher year-on-year (YoY) to Rs 516 crore in Q2FY22.

According to Devyani International’s management, “The foodservice industry is expected to grow at a CAGR of 12 per cent to 15 per cent in future. QSRs being the largest constituent of this segment will be a key beneficiary and will lead this growth.”

Devyani International with its strong and well recognized western and Indian QSR brands stand to gain the most as the company continued to expand its footprint in India, the management said.

“We have seen a great recovery on the demand side as the Covid 19 restrictions ease and the vaccination coverage improves. Leveraging this demand momentum across our markets, we expect to deliver a strong operational and financial performance,” the management had said.