Core biz recovery, biryani bet boost Devyani International outlook

Analysts positive on planned acquisition, upgrade the stock

The stock of quick-service restaurant (QSR) major Devyani International was up 4 per cent on Monday after indicating that it was eyeing a controlling stake in Sky Gate Hospitality, which operates restaurants under the brand Biryani By Kilo (BBK) as well as other brands. The company will raise money through the issue of equity shares on a preferential basis to fund the acquisition.

 

Sky Gate has posted revenues of ₹300 crore, growing annually by 55 per cent over 2018-19 (FY19) through 2023-24 (FY24). In addition to the BBK chain, which has 100 outlets and has expanded to 45 cities, Sky