Dalal Street Investment Journal — July 10-23, 2017

18 DALAL STREET INVESTMENT JOURNAL I JULY 10 - 23 , 2017 DSIJ.in^

GENERATING OVERWHELMING

RETURNS

Venky’s (India) is one of the

outperforming stocks from the FMCG

food sector.

The share price of company soared more

than 284 per cent on a year-to-date basis.

The stock had traded at `442.2 on

January 2, 2017, and it closed at `1698.

on June 30, 2017, generating multiple

returns for its shareholders in last six

months. Here, we at DSIJ present an

exclusive analysis on Venky’s India which

has multiplied investors’ wealth four-fold

within a short period.

INDUSTRY

The poultry industry is expected to

maintain its growth rate in the coming

years. Presently, the poultry industry is a

Analysis Equity

`95,000-crore industry that provides

direct and indirect employment to about

50 lakh people. It also supports the

economy of over two crore agricultural

farmers, especially the maize and soya

growers are dependent on this industry.

About 75 per cent to 80 per cent of the

cost of production in the poultry

industry consists of feed ingredients such

as maize and soya. With an annual

production of 67 billion eggs, India ranks

second in egg production in the world.

The broiler production is estimated at 4

million tonnes of chicken meat and India

ranks third in the world.

The vast gap between our present per

capita consumption (64 eggs and 3.5 kg

of meat) and National Institute of

Nutrition (NIN) recommended level

(180 eggs and 11 kg of meat) offers an

ADD MEAT TO YOUR

PORTFOLIO WITH

VENKY’S INDIA

GST benefits, beef ban in India

and lower raw material prices

will help Venky's grow

profitably. Trading at

comfortable earnings multiple,

Venky's looks attractive.

By DSIJ team

excellent opportunity for the growth of

poultry industry, at least for the next two

decades.

Factors like increasing disposable

incomes and revival of sentiment and

pick-up in industrial activity are expected

to contribute to the growth in demand

for poultry products.

ABOUT THE COMPANY

Venky's (India) is engaged in the

production of day-old layer and

broiler chicks for the poultry markets

of North India. The company offers a

range of products, such as day-old

commercial chicks, grown up

commercial broiler, refined oil and

de-oiled cake for poultry feed. Its

segments include poultry and poultry

(^) products, animal health products and
90.
95.
100.
105.
110.
115.
120.
85.
135.
185.
235.
285.
335.
385.
435.
Venky's India Vs BSE Sensex
Venky's India BSE Sensex
Base 100
(Last one year share price movement)
BSE Sensex
Venkey's India