Devyani International, Zomato: After robust listing of Zomato and Devyani International shares, stock market investors and shareholders' of the respective stocks are looking at the respective counters as one of the prominent money-making stocks in long-term. According to stock market experts, both stocks are strong from long-term perspective; but rate of return in Devyani International shares will be higher than Zomato shares. They advised fresh investors to buy Devyani International shares at around ₹120 to ₹125 levels for ₹200 target in next 6 to 8 months time-frame.
Speaking on Devyani International vs Zomato shares; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Both companies have different business model. Devyani International is a QSR chain operator having franchise of Pizza Hut, KFC, etc. while Zomato is in food delivery business. So, once unlock activities gains acceleration, its Devyani International whose business volume is expected to grow many-folds. After strong listing of Devyani shares, company management has announced that they will be using the money raised through public issue for debt repayment that will make them almost debt-free. Coming to Zomato, it has data base of its customers that will help the company to know behaviour of its customers through trend analysis. Zomato has recently acquired 15 per cent equity of Grofers — an online grocery delivery service provider company. So, in coming times, we may see Zomato entering grocery delivery business as well."
Avinash Gorakshkar of Profitmart Securities said that both stocks are positive from long-term perspective but rate of return in Devyani International shares shall be fast and hence one should buy Devyani International shares instead of Zomato.
Unveiling investment strategy in Devyani International shares; Sumeet Bagadia, Executive Director at Choice Broking said, "The QSR chain operator company has strong support at ₹110 to ₹120 levels. One can buy and hold the counter for immediate target of ₹140 to ₹150."
Calling Devyani International a portfolio stock; Ravi Singhal, Vice Chairman at GCL Securities said, "One can buy Devyani International stocks at around ₹125 for 6 to 8 months target of ₹200. However, one must maintain stop loss at ₹97 while taking position in this counter."
