Investor Darling to Café King? Coffee Day's Fresh Roast of Optimism

Image Source: Moneycontrol

Coffee Day Enterprises Limited shares jumped close to 10% on July 16, 2025, recording their second consecutive upper circuit and fueling new investor interest in the struggling coffee chain. The jump is against the backdrop of a significant development—legendary investor Dolly Khanna making a dramatic entry in the shareholding pattern of the company, a change of heart for the owner of Café Coffee Day.

What's the buzz about?

Dolly Khanna's Stake Acquisition

Star investor Dolly Khanna also featured in Coffee Day's June 2025 quarter shareholding, with a new holding of 32.78 lakh shares (1.55%). She's making her first reported appearance in the company, and her turnaround pick record is closely followed in the markets.

Outstanding Stock Performance

The stock jumped to its 10-month highs, climbing 10% to ₹39.96.
Coffee Day shares have increased 67–68% year till now and jumped more than 42% in three months, even though they are down 24% year-on-year.

Sudden Surge in Trading Volumes

Volume jumped to 85 lakh shares—11 times the 10-day average—reflecting investors' enthusiasm and renewed confidence in the stock.

Positive Corporate Announcements and Financial Improvement

Coffee Day reported sharp Q4 FY25 net loss fall—to ₹33 crore vs. ₹303 crore year-on-year—along with a 7% rise in revenues to ₹268 crore as of March 2025.
The company's net loss for the year fell significantly, in addition to ongoing debt lowering measures after favorable NCLAT order rejecting insolvency proceedings.

Sentiment Towards Industry and Leadership

Growing optimism throughout the Indian coffee and café sector, in the wake of shifting consumer patterns and premiumisation pressures fuelling sectoral prospects for recovery.

Source: Economic Times, Moneycontrol, Business Standard, Business Today, Equitymaster, MarketsMojo.