Shares of foodtech company Zomato and quick service restaurant (QSR) firm Devyani International have hit their respective highs on the back of heavy volumes.
The Global Index provider, MSCI, has added Zomato in its MSCI Global Standard India Index, while added Devyani International in MSCI India Domestic Small Cap Index. The changes will take place as on November 30, 2021.
Among the individual stocks, Zomato hit a record high of Rs 153, up 9 per cent on the BSE in Friday’s intra-day trade, surging 13 per cent in past two trading days after the country’s largest listed foodtech company, surprised the Street with strong top-line performance in the September quarter (Q2FY22). Aided by a 158 per cent jump in gross order value (GoV) year-on-year (YoY) in the India food delivery business, revenue for the company was up 140 per cent YoY. CLICK HERE FOR FULL DETAILS
The market price of Zomato, surpassed its previous high of Rs 152.75 touched on September 14, 2021. Zomato, the country’s first internet unicorn to tap the capital markets, had made its stock market debut on July 23, 2021.
Shares of Devyani International rallied 15 per cent to hit a new high of Rs 168.40 in intra-day trade today. The company had made a stock market debut on August 16, 2021. Thus far in the month of November, the stock price of Devyani International has surged 37 per cent after it reported a consolidated profit after tax (PAT) of Rs 46.6 crore in Q2FY22. It had posted a net loss of Rs 65.5 crore in Q2FY21.
The company's revenue from operations more-than-doubled or was up 124 per cent YoY at Rs 516 crore, on strong business recovery post Covid second wave. The management said it has seen a great recovery on the demand side as the Covid 19 restrictions ease and the vaccination coverage improves.
Devyani International is the largest franchisee of Yum Brands in India and one of the top operators of chain QSRs. It collaborates with Yum across various aspects of its operations for KFC and Pizza Hut for the franchisor’s brand protection and management including product innovation and development, brand strategy and technology initiatives. In addition, Devyani also has a franchisee for the Costa Coffee brand and stores in India.
Devyani is well placed to benefit from growing industry trends as it has a strong portfolio of highly recognized global brands which cater to a range of customer preferences. Its close association with Yum together with its technical, marketing and operational expertise has enabled them to establish itself as a comprehensive player in the QSR industry in India. It has a strong presence in key consumption markets, according to analysts.