Analyst Estimates: Here’s What Brokers Think Of Devyani International Limited (NSE:DEVYANI) After Its Half-Yearly Report

Devyani International Limited (NSE:DEVYANI) shareholders are probably feeling a little disappointed, since its shares fell 2.3% to ₹119 in the week after its latest interim results. Results were overall in line with expectations, with the company breaking even at the statutory earnings per share (EPS) level on ₹31b in revenue. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Devyani International from 20 analysts is for revenues of ₹63.3b in 2027. If met, it would imply a modest 5.7% increase on its revenue over the past 12 months. Devyani International is also expected to turn profitable, with statutory earnings of ₹0.30 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹63.7b and earnings per share (EPS) of ₹0.27 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Devyani International

The consensus price target was unchanged at ₹153, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so – it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Devyani International, with the most bullish analyst valuing it at ₹190 and the most bearish at ₹123 per share. As you can see, analysts are not all in agreement on the stock’s future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Devyani International’s past performance and to peers in the same industry. It’s pretty clear that there is an expectation that Devyani International’s revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 19% per year. Factoring in the forecast slowdown in growth, it seems obvious that Devyani International is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Devyani International’s earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹153, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. We have estimates – from multiple Devyani International analysts – going out to 2029, and you can see them free on our platform here.

And what about risks? Every company has them, and we’ve spotted 1 warning sign for Devyani International you should know about.

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