Devyani Intl. (DEVYANI)

FairStock Score: 42/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at Devyani Intl. at ₹143.76, market cap ₹17,725 Cr. A restaurant business can have brand and scale advantages, but the numbers must prove it. Here, the 5-year revenue CAGR of 26.71% and sales growth of 16.50% show demand expansion. Latest quarter sales were ₹1,441 Cr, yet net profit was -₹11 Cr, so growth has not translated into owner earnings. Profit growth of 300% is optically huge, but ROE of -3.96% and ROCE of 6.42% tell me the business is not earning enough on capital. Debt/equity of 2.03 is high for a restaurant chain, and P/B of 11.50 on book value of ₹12.51 leaves little asset cushion. P/E is 0.00 because earnings are negative or not meaningful, so valuation must lean on cash flow and DCF. Free cash flow of ₹439 Cr is a positive, and Altman Z-score of 3.48 with Piotroski F-score of 8/9 suggests the balance sheet is not immediately distressed. But EV/EBITDA of 219.99 is extraordinarily high; even DCF intrinsic value of ₹190.66 offers only modest upside from ₹143.76, not a Graham margin of safety. Promoter holding of 61.37% aligns interests, while zero dividend yield gives no cash return. FairStock score of 42/100 is mixed. I would call this a Turnaround, not a Stalwart: improving safety scores but negative net profit, high leverage and low returns. Watch whether net profit turns positive, debt/equity falls, ROCE improves, and FCF persists. At this price, I prefer patience.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer