consumer

Devyani International

DEVYANI · Nifty 50

113.28

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionconsumer sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score60/100 (ADEQUATE). 1 positive flags, 3 concerns.
Historical Context83 similar technical setups. Average outcome: -10.6% decline. 0% positive.

Fundamental

60/100

ADEQUATE

Trust

95/100

Verification

Coverage

33/100

LIMITED

Quick Take

Devyani International scores 60/100 on fundamentals (adequate). Devyani International: BROAD EXPANSION regime.

Fundamental Score: 60/100 · ADEQUATE · 1 signals detected

DuPont Analysis

ROE -2.0% broken into three drivers. Each shows how efficiently the company generates returns.

ROE-2.0%=
-0.6%Net Margin
×
0.8xTurnover
×
4.4xLeverage

ROE of -2.05% is modest leverage-driven and stable. Net margin of -0.6% × asset turnover of 0.81x × leverage of 4.4x.

What This Means

Net margin of -0.6% means the company keeps ₹-0.6 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.81x means the company efficiently uses its assets to generate revenue. Leverage of 4.4x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

53.9%

Operating

4.1%

Net

-0.6%

improving

Gross margin 53.9% → operating margin 4.1% → net margin -0.6%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

WEAK

Cash flow only covers -29.2x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.

Debt Sustainability

STRETCHED

Interest covered only 0.8x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 4.4x is high — monitor leverage.

Free Cash Flow

STRONG

FCF margin at 8.5% — moderate. Generating cash after investments.

Peer Comparison

Devyani International is compared against 10 peers in the consumer sector.

Key Watchpoints

🟢

Breaks above ₹119 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹108 (-5%)

Further downside risk

🟢

Consumer sector entering leadership

Sector rotation signal

Detected Patterns

⚠️ Low Earnings Quality: Cash flow only -29.2x earnings — weak cash conversion

Risk Flags

🔴 1 Critical⚠️ 2 Warning1 Positive4 total flags
🔴Unusual items are 119% of net income
Earnings Quality

One-off items significantly inflating reported profit. Core earnings may be much lower.

⚠️Special charges present in income statement
Earnings Quality

Special charges of ₹37K Cr. May indicate restructuring, impairment, or one-time costs.

⚠️Cash covers 29% of current liabilities
Balance Sheet

Tight liquidity. Monitor cash position and access to credit lines.

High promoter holding: 64%
Governance

Strong insider alignment. Promoters have significant skin in the game.

⚠️ 1 critical + 2 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/B Ratio
8.9HIGH
Market Cap
₹1349082.6L CrHIGH
From 52W High
59% of high
Sector Peers
10
Devyani International Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight