Coffee Day shares rally 57% in six months; what lies ahead?

Shares of Coffee Day Enterprises Ltd (CDEL) were trading 1.55 per cent higher at Rs 37.36 in Monday's trade. At this value, the stock has ascended by 56.71 per cent in the last six months.

On the earnings front, CDEL has brought down its net loss to Rs 33 crore during the fourth quarter of FY25 from a net loss of Rs 303 crore it posted in the corresponding quarter a year ago. Q4 revenue grew by 7 per cent year-on-year (YoY) to Rs 268 crore. EBITDA for Q4 stood at Rs 89 crore as against (-)Rs 319 crore in the corresponding quarter a year ago.

A market expert highlighted that CDEL stock is suitable only for high-risk traders. Technically, support levels are seen in the Rs 36–32 range, while a decisive close above Rs 39 would be needed to unlock further upside potential.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, described CDEL shares as a dark horse, noting that they are not a suitable investment option and are more appropriate for traders.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said the stock has seen a decent upmove. "The Rs 34-32 range is likely to be seen as intermediate support. While on the higher end, Rs 40-42 is the sturdy hurdle for the counter," he also said.

Drumil Vithlani, Technical Research Analyst at Bonanza, noted, "The stock is currently trading near a crucial resistance zone of Rs 38–39, which corresponds to the swing high from October 2024. Although the trading volumes are supportive, the stock is showing limited momentum for now. A buying opportunity could emerge if there's a clear breakout above Rs 39, which may open the path toward Rs 45. To manage risk, a stop loss can be set below Rs 36."

As of March 2025, promoters held an 8.21 per cent stake in the company.