Hi I am also from Hyderabad, i would like to add in the group.

Adani in talks with Plaza Premium which has already tie up with Dreamfolks…Interesting development…

@kuldeep_agarwal Hello Kuldeep

There are many ways to follow Momentum investing. You are following what is comfortable for you. There is nothing wrong.

There are some differences between the way we do.

1. My look back period is 1 year and 6 months. Your look back period is 3 months. In all the literature that I have seen, the optimum period is between 6m and 1 year.
2. I don’t look at returns in comparison to Index. I just go for absolute returns and sort them. I look at both 6 months and 1 year and give equal weightage for both.
3. To ensure that volatility is not affecting the portfolio, I divide the returns by Standard Deviation and then sort them.

In my portfolio I have 20 stocks against your 15 stocks. Again, nothing wrong. But having more stocks reduces the volatility of the overall pf.

You are using two factors – 3m returns and stocks near 52w high. See what benefit you get with this additional factor (52w high). Normally, more factors you have, reduces the overall returns of the pf.

These are some of my observations.

Devyani International –

Q3 FY 24 results and concall highlights –

Revenues- 843 vs 790 cr
Gross margins @ 70.6 vs 70.8 pc
EBITDA – 146 vs 173 cr (margins @ 17.4 vs 22 pc)
PAT – 5 vs 71 cr ( due materially higher interest and depreciation costs, Devaluation of Nigerian currency and subsequent hit of 12 cr against the same )

Brand – New Stores addition in Q3 – Grand Total

India –

KFC – opened 50 stores – total @ 590
Pizza Hut – opened 30 stores – total @ 565
Costa Coffee – opened 8 stores – total @ 154
Vaango – opened 1 store – total @ 54
Others – did not open any stores – total @ 24

Nepal –

KFC – opened 3 stores – total @ 25 stores

Nigeria –

KFC – opened 2 stores – total @ 40 stores

Thailand –

Acquired Restraunts Development ltd in Q3 – operating 283 KFC stores in Thailand. Deal completed in Jan 24

Brand wise performance –

KFC –

Avg Daily sales per store @ 1.04 vs 1.16 lakh
Total sales @ 524 vs 459 cr
Gross Margins @ 69 pc vs 68 pc

Pizza Hut –

Avg Daily sales per store @ 37 vs 43 thousand
Total sales @ 179 vs 183 cr
Gross margins @ 76 vs 74 pc

Costa Coffee –

Avg Daily sales per store @ 35 vs 37 thousand
Total sales @ 40 vs 29 cr
Gross margins @ 77 vs 78 pc

Company is present in > 250 cities in India

Q3 saw subdued consumer sentiment. Weakening in Nigerian currency also continued in Q3. As the consumer sentiment changes, company’s performance should turn around

Company is likely to Hit a total of 2000 stores by Dec 24 – 2 yrs ahead of time, helped by the Thai acquisition

The performance of KFCs acquired in Thailand will get reflected in the consolidated results of Q4 FY 24. Company intends to introduce other brands in Thailand

Company estimates that the Nigerian business may continue to need support for next 1-2 yrs as well

The operating margins of the Thai business are 3-4 pc lower than the Indian KFC business. Company intends to improve these margins to bring them at par with India KFC margins

Total consideration for the Thai Acquisition is 1060 cr. DIL shall invest aprox 340 cr upfront out of that. Temasek will invest another 340 cr. DIL and Temasek will invest the remaining amount after obtaining bank funding. DIL shall hold 51 pc and Temasek shall hold 49 pc in the acquired entity

Despite the slowdown in consumer sentiment, the company’s store expansion remains strong ( except Pizza Hut – where the company is not being so aggressive ) This is due to their belief that the consumer sentiment should turn around at some point in time

Thai business won’t require any fresh cash infusion. Its a self funded business

Pizza Hut is facing a lot of completion from the local players. At the same time, these local players are helping Pizza category become the biggest QSR category in India

**Broad store opening tgt for FY 25 – **

KFC @ 130-140 stores, Pizza Hut @ 60-70 stores, Costa Coffee @ 50-60 stores

Disc: hold a small tracking position, will add only if the performance improves, biased, not SEBI registered