Macquarie expects this stock to double in the next three years; do you own?

Brokerage firm Macquarie has projected a nearly 54% upside on Devyani International shares from their previous closing price on Tuesday, March 18. It expects the stock to double in value by financial year 2028.Currently, the brokerage has an “outperform” rating on stock with a price target of ₹230 per share. The stock closed at ₹149.4 apiece in the previous session.
Devyani International, which is the largest Yum India franchise, is a preferred play for potential uptick in restaurant demand on the proposed tax reductions in the Budget, Macquarie said.
This, along with tailwinds in KFC India, Thailand and an upside from other brands is driving the brokerage’s constructive view, despite a weak near-term outlook.The path to Devyani International’s shares doubling in value by financial year 2028 will be aided by a 10% to 11% growth in Same Store Sales for formats, which will also contribute to better margins during this period.

Last month

brokerages Bernstein and Citi raised their price targets on Devyani International. While Bernstein has an “Outperform” rating on the stock with twelve-month price target of ₹220, Citi suggested a “Buy” with a target of ₹210.Devyani International reported an 87% decline in its quarterly profit for the December quarter. Its net profit was down to ₹9.6 crore from ₹71.6 crore a year ago.

However, its revenue from operations increased 6% to ₹843 crore against ₹791 crore in the previous year.

Its EBITDA was down 17% at ₹146 crore, compared to ₹175 crore a year ago and EBITDA margin stood at 17.3%.

Of the 26 analysts that have coverage on the stock, 18 have a “buy” rating, two have a “hold” rating and six have a “sell” rating.

Devyani International shares ended nearly 2% lower on Monday.  The were up 0.35% at 149.73 apiece at 9.20 am on Tuesday, March 18 The stock has declined 18.2% this year, so far.

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