Buy Devyani International, target price Rs 210: Emkay Global

Emkay Global has buy call on Devyani International with a target price of Rs 210. The current market price of Devyani International is Rs 164.85 Time period given by analyst is one year when Devyani International Ltd. price can reach defined target.

Devyani International Ltd., incorporated in the year 1991, is a Small Cap company (having a market cap of Rs 20070.91 Crore) operating in Tourism & Hospitality sector.

Devyani International Ltd. key Products/Revenue Segments include Food Products, Other Operating Revenue and Scrap for the year ending 31-Mar-2022.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 593.14 Crore, down -5.60 % from last quarter Total Income of Rs 628.32 Crore and unchanged .00 % from last year same quarter Total Income of Rs Crore. Company reported net profit after tax of Rs 75.94 Crore in latest quarter.

Investment Rationale
Expect pre-IndAS margins of ~16%, only ~50bps lower than last two quarters, due to an increase in RM inflation

Promoter/FII Holdings
Promoters held 62.8 per cent stake in the company as of 31-Mar-2022, while FIIs owned 6.9 per cent, DIIs 5.76 per cent.