Devyani International snaps four-day gaining streak, Nippon MF buys partial stake

Shares of Devyani International Limited traded nearly 3 percent lower to Rs 162.50 in morning trade on February 22, breaking its four-day gaining streak on the bourses.

Nippon India Mutual Fund mopped up 80 lakh shares or 0.66 percent stake at the average price of Rs 164, stock exchange data showed. This comes after Yum Restaurant India Private Ltd divested the entire 4.4 percent stake in the KFC operator, valuing the transaction at Rs 871 crore.

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At 9:30 am, the stock was trading at Rs 162, down 1.9 percent from the previous close on the NSE. The stock has tanked 10 percent in the last three months on the bourses.

Devyani International reported an 87 percent decline in quarterly profit, citing subdued consumer sentiment as a contributing factor. The operator of KFC and Pizza Hut reported a consolidated net profit drop to Rs 9.6 crore from Rs 71.6 crore in the corresponding period a year ago.

Furthermore, the company’s EBITDA witnessed a 17 percent decrease, amounting to Rs 146 crore as opposed to Rs 175 crore in the previous year. The EBITDA margins were recorded at 17.3 percent.

Devyani International is primarily engaged in the business of developing, managing, and operating quick service restaurants and food courts for brands such as Pizza Hut, KFC, Costa Coffee, Vaango etc.

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