MoneyWorks4Me

Check Before You Invest : Devyani International Ltd

BSE: 543330 NSE: DEVYANI ISIN: INE872J01023
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Devyani International Ltd belong to?
Devyani International Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Devyani International Ltd a good quality company?
Devyani International Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Devyani International Ltd undervalued or overvalued?
Devyani International Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - 85.63
Price to Book 11.32 18.06
Price to Sales 3.02 5.09
EV to EBITDA 19.47 27.94
Q.4 Is Devyani International Ltd a good buy now?
Devyani International Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Devyani International Ltd?
Devyani International Ltd revenue growth is 13.3% for FY-2026, which is below its 5-year CAGR of 37.67%, indicating slower growth.

Q.2 Gross Profit margin of Devyani International Ltd?
Devyani International Ltd Gross profit margin which is the profit after deduction of direct costs, is 11% for FY-2026, which is below its 5-year median of 11.8%, indicating decreasing margins.

Q.3 Operating Profit Margin of Devyani International Ltd?
Devyani International Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.03% for FY-2026, which is below its 5-year median of 18.23% indicating decreasing margins.

Q.4 Net Profit Margin of Devyani International Ltd?
Devyani International Ltd Net Profit Margin is -0.76% for FY-2026, is below its 5-year median of -0.14%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 11 11.8
Operating Profit Margin (%) 15.03 18.23
Net Profit Margin (%) -0.76 -0.14

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Devyani International Ltd?
Devyani International Ltd Return on Asset is -0.71%, which is below its 5-year historical median of -0.14%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Devyani International Ltd?
Devyani International Ltd Return on capital employed is 8.98% for FY-2026, which is below its 5-year historical median of 14.03%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.7 Return on Equity (ROE) of Devyani International Ltd?
Devyani International Ltd Return on equity is -3.24% for FY-2026, which is below its 5-year historical median of -0.65%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Devyani International Ltd?
Devyani International Ltd Cash conversion cycle is -25 days, below its 5-year historical median of -21 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.93 0.97
ROE (%) -3.24 -0.65
ROCE (%) 8.98 14.03
Cash Conversion Cycle -25 days -21 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Devyani International Ltd?
Devyani International Ltd Debt-to-Equity ratio is 0.88, which is above the industry average of 0.49, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Devyani International Ltd?
Devyani International Ltd Debt to cash flow from operations is 1.48, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Devyani International Ltd?

Q.1 Promoter shareholding and pledge status of Devyani International Ltd?
Promoters hold 61.36% of the Devyani International Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Devyani International Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Devyani International Ltd vs industry peers?
Devyani International Ltd revenue CAGR is 37.67%, compared to the industry median CAGR of 7.08%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 13.3 7.1
Gross Profit Growth (%) 6.2 13.2
Operating Profit Growth (%) 3.4 12.3
Net Profit Growth (%) 0 15.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.93 1.32
ROE (%) -3.24 7.22
ROCE (%) 8.98 11.43
Cash Conversion Cycle (days) -25.05 47

Valuation & price assessment

Q.1 Stock return of Devyani International Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -10.92% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - -10.9% -8.6%
Q.2 Valuation ratios of Devyani International Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 85.63, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - 85.63 26.55
Price to Book 11.32 18.06 2.53
Price to Sales 3.02 5.09 1.43
EV to EBITDA 19.47 27.94 14.38

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