Citi trims Devyani International target to 174 rupees on cost pressure
Citi Research cut its Devyani International target to 174 rupees from 186 and kept a buy rating, citing cost pressure on margins, per Market Talk.
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what happened
Citi Research analyst Ashish Kanodia expects Devyani International's margins to face cost pressure in the near term, according to a note reported by Market Talk. The Indian fast-food operator has raised menu prices slightly and plans further measured increases to absorb higher costs for raw materials, wages and utilities.
Kanodia says fast-food chains are starting to recover after a long stretch of weak or negative same-store sales, helped by a pickup in discretionary spending. He adds that continued same-store growth and margin improvement could push the shares higher.
Citi lowered its target price to 174 rupees from 186 rupees and kept its buy rating. The shares closed Monday at 116.65 rupees.
why it matters
For investors, the note highlights a tug-of-war between rising input costs and improving demand at Indian quick-service restaurant chains. Margin trends will be the key variable to watch, since sales growth alone does not guarantee a profit recovery.
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sources
- Devyani International's Margins May Be Weighed by Cost Pressures — Market Talk, 3 November 2026 at 02:04 UTC
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