Motilal Oswal Financial Services has a 'buy' call on Devyani International -- an operator of KFC and Pizza Hut restaurants in India -- with a target price of Rs 210. The brokerage is positive on the company's strong performance in the October-December period with an overall improvement.
According to Motilal Oswal Financial Services, both KFC and Pizza Hut saw sequential growth in average daily sales (ADS) in the third quarter of FY22 despite adding a large number of stores in the past five quarters.
ALSO READ
The brokerage remains bullish on Devyani International's prospects on :
Devyani has managed to migrate from a dine-in company to a delivery-focused one, and its management expects this to strengthen further as most new stores are delivery-focused, Motilal Oswal Financial Services added.
Earlier this month, Devyani reported a net profit of Rs 63.1 crore for the December quarter, up 44.1 percent on a year-on-year basis. Its quarterly revenue increased 64.7 percent on year to Rs 624.4 crore, according to a regulatory filing.
ALSO READ: CLSA initiates coverage on Devyani
Devyani International operated 339 KFC stores, 391 Pizza Hut stores and 50 Costa Coffee stores in India, as of December 31, 2021, its management said after the earnings announcement.
The company opened 192 net new stores across core brands in the nine months to December 31, 2021, with 81 net new stores in Q3, it added.
(Edited by : Sandeep Singh)
First Published: Feb 16, 2022 2:37 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Telangana Lok Sabha elections 2024: Asaduddin Owaisi to Bandi Sanjay Kumar, a look at key candidates
May 11, 2024 3:32 PM
Lok Sabha elections 2024: Hyderabad to Kadapa, key seats in fourth phase
May 11, 2024 2:54 PM
Telangana Lok Sabha elections 2024: List of BRS candidates
May 11, 2024 1:55 PM