Recent Price Movement and Market Context
On 16 Dec 2025, Devyani International's stock recorded an intraday low of Rs.129.35, marking its lowest level in the past year. This decline represents a 2.6% drop on the day and extends a losing streak over the last five trading sessions, during which the stock has returned -3.82%. The share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In comparison, the Sensex index opened lower by 187.75 points and closed down by 257.72 points at 84,767.89, a 0.52% decline. Despite this, the Sensex remains close to its 52-week high of 86,159.02, trading 1.64% below that peak and maintaining levels above its 50-day and 200-day moving averages. This divergence highlights Devyani International's relative underperformance within the broader market environment.
Performance Over the Past Year
Over the last 12 months, Devyani International's stock has delivered a total return of -21.45%, contrasting with the Sensex's positive return of 3.69% over the same period. The stock's 52-week high was Rs.209.65, indicating a significant decline from that level to the current low. This persistent underperformance has been consistent over the past three years, with the stock lagging behind the BSE500 index in each annual period.
Financial Metrics and Valuation
Devyani International's long-term financial indicators reveal subdued growth and profitability. The company's average Return on Capital Employed (ROCE) stands at 9.15%, reflecting modest efficiency in generating returns from its capital base. Operating profit growth has been minimal, with an annualised rate of 1.02% over the last five years, suggesting limited expansion in core earnings.
Recent quarterly results for September 2025 show a Profit Before Tax (PBT) of Rs. -29.54 crores, representing a decline of 114.1% compared to the previous four-quarter average. The Profit After Tax (PAT) for the same period was Rs. -19.52 crores, down by 587.1% relative to the prior four-quarter average. These figures indicate a challenging earnings environment for the company.
The company's debt metrics also warrant attention. The Debt-to-EBITDA ratio is elevated at 3.27 times, while the Debt-Equity ratio for the half-year period reached 5.08 times, signalling a relatively high leverage position. Such levels may constrain financial flexibility and increase risk exposure.
Valuation Considerations
Devyani International's valuation appears expensive when measured by enterprise value to capital employed, which stands at 4.1. However, the stock is trading at a discount relative to the average historical valuations of its peers in the Leisure Services sector. Despite this, the company's profitability has contracted sharply, with profits falling by 195.7% over the past year, further complicating valuation assessments.
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Sector and Peer Comparison
Within the Leisure Services sector, Devyani International's stock has underperformed its peers, reflecting challenges in maintaining growth and profitability. The company's market capitalisation grade is relatively low at 3, indicating a smaller size compared to larger sector participants. Institutional holdings account for 26.31% of the stock, suggesting a significant presence of investors with access to detailed fundamental analysis.
While the Sensex and broader market indices have maintained bullish technical indicators, Devyani International's share price remains below all major moving averages, underscoring its divergence from general market trends. This gap highlights the stock's distinct performance trajectory within its sector and the wider market.
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Summary of Key Concerns
The stock's recent decline to Rs.129.35 marks a significant milestone as it reaches its lowest point in a year. This movement reflects a combination of subdued financial performance, elevated leverage, and persistent underperformance relative to market benchmarks. The company's earnings have contracted sharply in recent quarters, and its ability to generate returns on capital remains modest. These factors contribute to the current valuation and price levels.
Despite the broader market's relative strength, Devyani International's share price continues to trend downward, highlighting the distinct challenges faced by the company within the Leisure Services sector. Institutional investors hold a notable stake, which may influence trading dynamics and market perception.
Overall, the stock's trajectory over the past year and recent trading sessions illustrates a cautious market stance, with the 52-week low serving as a key reference point for ongoing price action.
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