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Devyani International Share Price Analysis: Market Cap, P/E Ratio, Moving Averages & Future Prospects

Introduction to Devyani International Share

Devyani International Limited (DIL) is one of the largest franchisees for popular brands like KFC, Pizza Hut, and Costa Coffee in India. The company has been steadily gaining attention from investors, and its stock performance has become an interesting topic. In this article, we’ll break down the key financial parameters of Devyani International Share, including market cap, P/E ratio, moving averages, and much more to help you make an informed decision.

Company Overview

Devyani International operates in the food and beverage sector, serving fast food to a growing consumer base across India. As the company expands, its stock has drawn interest from investors looking to benefit from the quick-service restaurant boom in the country.

Market Cap and P/E Ratio

Market Capitalization

Currently, Devyani International Share market capitalization stands at approximately INR 23,000 crores. This large market cap indicates the company’s strong position in the market.

P/E Ratio

Devyani International’s current P/E ratio is around 347. A higher P/E ratio compared to the industry average can indicate that the stock is overvalued[1], but it can also mean that investors are expecting high future growth.

IPO Price and Listing

Devyani International Share went public in August 2021 with an Initial Public Offering (IPO) price of INR 90 per share. On the day of listing, the stock debuted at INR 141 on the Indian Stock Exchanges (NSE & BSE), providing a significant premium to IPO subscribers. Since then, the stock has experienced fluctuations, reflecting changes in market conditions and investor sentiment.

Current Market Price of Devyani International Share

As of today (17/Sep/24), the current market price of Devyani International is INR 190. This represents a considerable increase from its IPO and listing prices, indicating steady growth and positive investor confidence in the company’s business model.

Moving Averages & Stock Performance

Devyani International Share Price is trading higher than 5 Day, 20 Day, 50 Day, 100 Day & 200 Day moving averages. It suggests a strong bullish trend for the stock. Investors often view this as a positive signal for future price movement.

52-Week High and Low

The stock has shown notable volatility, with a 52-week high of INR 223 (6 Oct 2023) and a 52-week low of INR 142 (13 March 2024). Currently trading closer to its high, the stock seems to have momentum, but investors should be mindful of market swings that could affect its price.

Future Prospects and Target Prices

Analysts Target Prices

Market analysts have set a target price of INR 210 for Devyani International by the end of 2024, assuming it maintains its current growth trajectory. By 2025, the target price is expected to reach around INR 250. These targets are based on the company’s expansion plans, improved profit margins, and the growing demand in the quick-service restaurant sector.

Growth Potential

Devyani International is poised for growth due to its strong brand presence and expanding market in India. The company’s focus on opening more outlets, optimizing costs, and leveraging technology for online orders places it in a favorable position for future success.

Risk Factors

While the prospects look promising, risks like increasing competition, changing consumer preferences, and regulatory changes could impact the company’s growth. Investors should consider these factors before making a decision.

Conclusion

In summary, Devyani International Share has demonstrated solid performance since its IPO, with a strong market cap, a relatively high P/E ratio, and a positive trend in its moving averages. Its future growth prospects seem bright, especially given the increasing popularity of quick-service restaurants in India. However, as with any investment, it’s essential to be aware of potential risks. This analysis serves as a guide, but always conduct your own research or consult a financial advisor before investing.

Also Read: Bajaj Housing Finance IPO, Listing and Target Prices

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