The brokerage now has a “buy” rating on the stock from its earlier rating of “add” along with a revised price target of ₹190 apiece from ₹175 earlier. This implies an upside potential of nearly 22% from its closing price last Friday.
Kotak expects financial year 2026 to be a better year for Devyani International, led by a pick up in same store sales growth (SSSG), which will also be aided by a lower base, along with some improvement in the underlying demand. Improved execution is another positive trigger for the stock, the brokerage said.
The brokerage highlighted five factors as to why it likes Devyani International as a stock:
- KFC’s market opportunity, given its strong brand equity and under-penetration in India
- Optionality of other brands
- RJ Corp’s appetite for portfolio augmentation
- Track record for creating shareholder value through organic and inorganic initiatives.
Of the 26 analysts that have coverage on the stock, 19 have a “buy” rating, two have a “hold” rating and five have a “sell rating”.
Devyani International shares gained nearly 5% to hit an intraday high of ₹163.66 apiece on Tuesday, April 15. The stock was up 4.78% at ₹163.37 apiece around 10.15 am. It has declined nearly 11% this year, so far.
Also Read: SAIL shares could see most upside on this condition but Vedanta can see weakness: Citi
