Devyani International Stock Falls to 52-Week Low of Rs.122.7

Recent Price Movement and Market Context

On 18 Dec 2025, Devyani International's stock price touched an intraday low of Rs.122.7, representing a 3.88% decline during the trading session. This level marks the lowest price point for the stock in the past 52 weeks, down from its high of Rs.209.65. The stock has experienced a continuous downward trend over the last seven trading days, resulting in an 8.05% return loss during this period.

In comparison, the broader Sensex index opened flat but moved into negative territory, trading at 84,450.41 points, down 0.13% or 41.32 points. The Sensex remains close to its 52-week high of 86,159.02, just 2.02% away, and is currently trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish trend for the benchmark.

Devyani International, however, is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained weakness in its price momentum relative to the market and its sector peers.

Performance Overview and Comparative Analysis

Over the last twelve months, Devyani International's stock has recorded a return of approximately -26.88%, contrasting with the Sensex's positive return of 5.33% during the same period. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the past three annual periods.

The stock's 52-week high of Rs.209.65 stands in stark contrast to its current price, highlighting the extent of the decline. Sector-wise, the Leisure Services industry has seen varied performance, but Devyani International's share price has notably underperformed its sector peers.

Financial Metrics and Company Fundamentals

Devyani International's long-term financial indicators reflect certain constraints. The company's average Return on Capital Employed (ROCE) over recent years stands at 9.15%, which is modest relative to industry standards. Operating profit growth has been minimal, with an annual rate of 1.02% over the last five years, indicating limited expansion in core profitability.

Debt servicing capacity appears constrained, with a Debt to EBITDA ratio of 3.27 times, suggesting a relatively high leverage level. The half-yearly debt-to-equity ratio is reported at 5.08 times, which is elevated and may contribute to financial pressure.

Recent quarterly results for September 2025 show a Profit Before Tax (PBT) of Rs. -29.54 crores, reflecting a decline of 114.1% compared to the previous four-quarter average. Similarly, the Profit After Tax (PAT) for the quarter was Rs. -19.52 crores, down by 587.1% relative to the prior four-quarter average. These figures indicate a significant contraction in profitability.

The company’s ROCE for the recent period is reported at 4.1%, with an enterprise value to capital employed ratio of 4, suggesting a valuation that may be considered high relative to its capital returns. Despite this, the stock is trading at a discount compared to the average historical valuations of its peers.

Institutional Holdings and Market Position

Devyani International has institutional investors holding approximately 26.31% of its shares. These investors typically possess greater resources and analytical capabilities to assess company fundamentals compared to retail investors. The presence of such holdings may reflect a degree of confidence or strategic interest despite the recent price weakness.

Summary of Key Concerns

The stock’s decline to Rs.122.7, its lowest in a year, reflects a combination of subdued financial performance, elevated leverage, and sustained price weakness relative to market benchmarks. The company’s profitability metrics have shown contraction in recent quarters, and its growth rates remain modest. Trading below all major moving averages further underscores the current bearish trend in the stock’s price action.

While the broader market and sector indices maintain more positive momentum, Devyani International’s share price has diverged, highlighting specific challenges faced by the company within the Leisure Services sector.

Market Outlook and Valuation Context

Devyani International’s valuation metrics indicate a relatively expensive position when considering capital returns, yet the stock trades at a discount compared to peer averages. This valuation dynamic may reflect market caution given the company’s recent financial results and leverage profile.

Despite the stock’s underperformance, the presence of institutional holdings suggests ongoing interest from certain investor segments with the capacity to analyse the company’s fundamentals in detail.

Conclusion

Devyani International’s fall to a 52-week low of Rs.122.7 marks a notable development in its stock performance, driven by a combination of financial pressures and market dynamics. The stock’s sustained weakness relative to the Sensex and sector benchmarks, alongside recent quarterly losses and leverage concerns, provide a comprehensive picture of the current challenges facing the company.

Investors and market participants will continue to monitor the stock’s price movements and financial disclosures as part of their ongoing assessment of Devyani International’s position within the Leisure Services sector.

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