Devyani International shares in focus as Franklin Templeton Fund buys stake in block deal

Shares of Devyani International were in focus today after Franklin Templeton Fund bought about 0.5% stake in the firm via a block deal on Tuesday. Franklin's India Flexi Cap Fund purchased about 62 lakh shares in open market transaction for Rs 89 crore. The deal was executed at an average price of Rs 145 per share.

In early trade, shares of Devyani International were trading marginally higher at Rs 142.85 against the previous close of Rs 142 on BSE. The stock of Devyani International has slipped 21.42% this year and lost 15.7% in the last one year. Total 0.12 lakh shares of the firm changed hands amounting to a turnover of Rs 17.53 lakh on BSE today.

Market cap of the firm stood at Rs 17,122 crore in early trade today.

In terms of technicals, the relative strength index (RSI) of Devyani International stock stands at 24.9, signaling it's trading in the oversold zone. The stock has a beta of 1.0, indicating average volatility in a year. Devyani International stock is trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Devyani International stock has lost 7% in the last 11 days. Under the block deal, Singapore's Temasek Holdings offoaded via its subsidiary Dunearn Investment Mauritius 2.85% equity stake or 3.4 crore shares in the company for Rs 499 crore.

Temasek held 5.88% stake in the company at the end of December 2022 quarter.

Devyani International is one of the largest franchisees of Yum brands such as KFC, Pizza Hut and Taco Bells in the country. In addition, the company is a franchisee for the Costa Coffee brand and stores in India.

Devyani International reported a 7.6% year-on-year (YoY) rise in net profit to Rs 71 crore for the quarter ended December 31, 2022 against a net profit of Rs 66 crore in the corresponding quarter of the previous fiscal.

Operating revenue grew 27% at Rs 790 crore in Q3 against Rs 624 crore reported in the same quarter last fiscal. Meanwhile, in 9M FY23, revenue from operations grew 50% YoY to Rs 22,42.7 crore from Rs 1,493.2 crore in 9M FY22.

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