Devyani International share Versus Zomato stock: Valuations, profitability, sales, growth, debt – Key Metrics – EXCLUSIVE RESEARCH

Devyani International share Versus Zomato - The stock of Devyani International Limited was listed today at Rs 140.90 on the NSE at a premium of almost 56 per cent. Food deliver Service Zomato stocks also had a stellar listing at a 66 per cent premium. How do the two companies stand against each other? Should the investors of one of these stocks look for the other? Zee Business’ Varun Dubey has this interesting comparison between Devyani International and Zomato shares – take a look! 

Dubey said that both these players are important in the food business ecosystem as one makes food, while the other delivers it. But they have a different story altogether.

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Devyani International Vs Zomato – Dubey said that this company has a tie-up with many big brands. He said that it is quite difficult to make partnerships with international brands and operate domestically as there are many entry barriers. Meanwhile, many of the food products of Devyani are being delivered by Zomato. The entry and exit barriers in food delivery business are very few, he further said. 

Many operators who started business, shut shops soon after.  

Devyani has seen a 14.5 per cent degrowth in its sales, while Zomato has seen a 52 per cent rise in its sales during this period. However, in its guidance, the management of Devyani International has said that the company is likely to become profitable within this year, if everything goes well.  

But as per the estimates of Zee Business, Zomato is unlikely to become profitable before 2025, Dubey said. 

The money raised by Devyani through this IPO will be utilised to pay its debts and reduce interest cost, Dubey said. Meanwhile, the proceeds of the public issue in case of Zomato will go towards growth, he further said. 

Zomato is planning to undertake actions for organic and inorganic growth, Dubey said. This is a plus for the company. 

The market cap to sales is 13 times for Devyani while the Price-to-Book-Value is at 120 times after the listing. 

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देवयानी Vs जोमैटो: किसमें कितना है दम?

कितनी अलग-अलग हैं दोनों कंपनियां?

देवयानी और जोमैटो में कितना जोखिम?

कब तक मुनाफे में आएंगी देवयानी और जोमैटो?#Zomato #DevyaniInternational @AnilSinghvi_ @VarunDubey85 pic.twitter.com/fBSnHnaevA

— Zee Business (@ZeeBusiness) August 16, 2021

Meanwhile, for Zomato, the market cap-to-sales ratio is at 53 times while the Price-to-Book-Value is at 23 times. So, in terms of valuation, Zomato still looks cheaper in comparison to Devyani, he added.