DEVYANI

KFC operator Devyani International Ltd. (DIL) shares rallied five percent during the afternoon session on April ***** bumped up its rating on the firm to ‘buy’, from ‘add’ earlier, while hiking its fair target value on shares to Rs 190 from Rs 175. This indicates an upside of 22 percent from the previous session’s closing price. Kotak noted that in FY25, Devyani’s performance was impacted by persisting weakness in QSR demand and possible execution issues following key management exits. The brokerage noted that shares of Devyani corrected by about 20 percent over the course of the last three months, owing to weak operating print on an absolute basis and relative to peers. However, according to Kotak, the quick-service restaurant (QSR) operator is poised for improved growth in FY26. The brokerage expects same store sales growth (SSSG) to pick up, as a result of a weak base over the past 8/9 quarters and improving demand.