Introduction:
Over the past few years, the food delivery sector in India has witnessed exceptional growth. The Indian food delivery market was estimated to be worth 30 billion US Dollars in 2023, and the anticipated annual growth rate is over 25% for the next few years. The growth is driven by factors such as the increasing number of tech-savvy consumers and the growing preference for ordering meals from the confines of their homes.
In 2024, the Indian food delivery industry has emerged as an exciting prospect for investors seeking long-term growth opportunities and stability. In this article, you will explore some of India's best food delivery stocks for investment in 2024. Continue reading.
What are food delivery stocks?
Food delivery stocks belong to companies engaged in delivering food from kitchens or restaurants to customers. These companies can be categorised into three segments: aggregators such as Swiggy and Zomato, those exclusively delivering food from their kitchens, and certain delivery or courier firms providing food delivery services.
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Several of these companies are publicly traded on the Indian stock exchanges, presenting investment opportunities for retail and institutional investors. While many food delivery stocks have experienced significant surges in their prices in recent years, some carry the load of high valuations.
Top food delivery stocks in 2024
Below are the top food delivery stocks in India for investment in 2024:
1. Zomato
Zomato has firmly established itself as a frontrunner in the Indian food delivery market. With a vast network of restaurants and a user-friendly app, Zomato has consistently adapted to consumer demands. The company's recent foray into the grocery delivery segment and strategic partnerships have contributed to its overall market presence.
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As of 8 March 2024, Zomato’s shares were trading for Rs. 160.00 per share at the National Stock Exchange (NSE) and Rs. 159.95 per share at the Bombay Stock Exchange (BSE). The stock has seen the highest recovery from its 52-week low of Rs. 49.00 per share.
2. Jubilant FoodWorks
Jubilant FoodWorks is the parent company of India’s favourite pizza brand – Domino’s Pizza. The company found huge success with its flagship delivery campaign, “30 minutes or free”. Over time, the company has expanded its portfolio to include additional brands such as Dunkin’ Donuts and Hong’s Kitchen, among others.
As of 8 March 2024, Jubilant FoodWorks’ shares were trading for Rs. 453.40 per share at the NSE and Rs. 452.95 per share at the BSE. The stock has recently witnessed immense interest from FIIs and FPIs, which makes it an attractive investment proposition even for domestic investors.
3. Devyani International
Devyani International holds the Indian franchise for the well-known multinational food brand Yum Brands. The company manages several quick-service restaurants in India, including KFC, Pizza Hut, Burger King, and Costa Coffee.
As of 8 March 2024, Devyani International shares were trading for Rs. 155.75 per share at the NSE and Rs. 155.70 per share at the BSE. The stock has demonstrated robust annual EPS (Earnings Per Share) growth, and the book value per share has consistently improved over the past two years.
4. Westlife Foodworld
Westlife Foodworld Limited operates the renowned fast-food chain McDonald’s outlets across India. Its wholly-owned subsidiary, Hardcastle Restaurants Pvt. Ltd., manages the restaurant outlets in western and southern India.
As of 8 March 2024, Westlife Foodworld shares were available for Rs. 759.55 per share at the NSE and Rs. 761.70 per share at the BSE. The stock has demonstrated robust annual EPS growth, and its return on capital employed (ROCE) has also increased over the past two years.
5. Speciality Restaurants
Speciality Restaurants Limited operates several fine and casual dining restaurants in India, Bangladesh, and Tanzania. Some popular restaurant chains under the company are Mainland China, Riyasat, Flame n Grill, and Oh Calcutta.
As of 8 March 2024, the company’s shares were trading for Rs. 202.60 per share at the NSE and Rs. 202.50 per share at the BSE.
To conclude
The food delivery sector in India is witnessing unprecedented growth, driven by changing consumer habits and technological advancements. Investing in the food delivery stocks mentioned above can make you a part of this growth and achieve significant returns.
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