Devyani International IPO: The issue of Devyani International IPO, the largest franchise company of Pizza Hut, KFC, Costa Coffee, is open today i.e. on August 4. It will close on 6th August. The issue price of the company's shares is Rs 86-90.
Devyani International IPO: Is the largest franchisee of Yum Brand in India. It has 696 stores in 166 cities across the country. By the way, the company has been running at a loss continuously for the last three years. So what company should I invest in?
If you are also in the same dilemma, then first know its gray market premium (GMP) then decide to invest. Devyani International's premium is running at Rs 63 in the gray market today. The company's shares will be listed on both BSE and NSE.
What is the analyst's opinion?
Most of the analysts have given subscribe ratings to this public offering as they believe that the valuation of the company is low and it can grow over the long term. QSR sales have grown at a CAGR of over 5 percent over the years and are likely to accelerate further.
To capitalize on the growth opportunities, the company is increasing its number of stores. However, there is a big risk of running into losses. It has been at a loss for the last three years.
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Devyani International's EBIDTA margin has been good at 17.3 percent in the last two financial years. The company is also in a strong position in terms of cash flow.
Analysts are worried about the company's profitability. The company is running at a loss for the last three years. Although the company's EBIDTA margin is 17.3 percent, which is fine. Apart from this, the cash flow of the company is effective.