Venky's (India) Limited

Consumer Defensive — Farm Products · NSE

₹1,704.00+₹45.20 (+2.72%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Venky's (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Venky's (India) Limited primarily engages in the production and sale of poultry products in India and internationally. It operates through three segments: Poultry and Poultry Products, Animal Health Products, and Oilseed.

IndustryFarm Products

SectorConsumer Defensive

Employees5,086

Annual revenue₹3,727 Cr

How does it make money?

Turns over ₹3,727 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 5,086 employees supports ₹73.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹73.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -8% while net margin moved +115% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-8%

Margin effect+115%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 8.7% is weak
✓ ROE has improved by 3.3 points over the period

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

81/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

13.8x

3Y Median

29.1x

40 monthly readings · mean 27.7x · range 14.1x–41.7x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 53% below its 3y median of 29.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 68% below the peer median of 43.3x.

vs. its own history

Cheap

29.1x median over 40 months · -53%

vs. sector peers

Cheap

43.3x median of 4 peers · -68%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.5x

PEG

0.54

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 3.7% to 6.4% over 3 years.
Debt is being paid down
Total debt is down 13% over 3 years.
Cash generation is improving
Free cash flow is up 243% over 3 years.
Return on equity is rising
ROE has improved from 5.4% to 8.7%.
Return on capital is rising
ROCE has improved from 8.4% to 12.1%.
Very low debt
Debt/Equity of 0.10x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Inventory building faster than salesFinancial
Inventory up 43% against revenue up -8% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.7% to 6.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 53% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 68% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹150 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 4%✓ 6.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹150 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 9%✓ 12.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 29.1x✓ 13.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹2,400 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.8x

Cheap

Cheap against the generic band

P/B Ratio

1.50x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹123.1

Profitable

Profitable on a per-share basis

ROE

8.7%

Moderate

Moderate capital efficiency

ROCE

12.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.10x

Low

Conservative leverage

Revenue Growth (YoY)

29.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

215.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.59%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹150 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

31.5x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

5.3%

Average

Average margins

Net Margin

4.4%

Average

Average bottom-line conversion

Current Ratio

2.22

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

83%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1644.6 / 1621.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

55.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,057 Cr	₹3,610 Cr	₹3,307 Cr	₹3,727 Cr	-2.8%
EBITDA	₹149 Cr	₹159 Cr	₹216 Cr	₹240 Cr	+17.1%
EBITDA Margin	3.7%	4.4%	6.5%	6.4%	—
PAT (Net Profit)	₹70 Cr	₹79 Cr	₹117 Cr	₹139 Cr	+25.5%
EPS	₹50.03	₹56.13	₹82.78	₹98.85	+25.5%
ROE	5.4%	5.8%	7.9%	8.7%	—
ROCE	8.4%	8.9%	11.6%	12.1%	—
Total Debt	₹191 Cr	₹172 Cr	₹170 Cr	₹167 Cr	-4.4%
Free Cash Flow	₹44 Cr	₹32 Cr	₹20 Cr	₹150 Cr	+50.8%

🔴 Revenue has shrunk at 2.8% a year over 3 years.

🟢 EBITDA has grown at 17.1% a year over 3 years.

🟢 EBITDA Margin has risen from 3.7% to 6.4% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has grown at 25.5% a year over 3 years.

🟢 EPS has grown at 25.5% a year over 3 years.

🟢 ROE has risen from 5.4% to 8.7% over 3 years (+3.3 pts).

🟢 ROCE has risen from 8.4% to 12.1% over 3 years (+3.7 pts).

🟢 Total Debt has shrunk at 4.4% a year over 3 years.

🟢 Free Cash Flow has grown at 50.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,309 Cr

Total Liabilities

₹713 Cr

Cash & Equivalents

₹62 Cr

Operating Cash Flow

₹191 Cr

Capex

-₹41 Cr

Shareholding (proxy)

Institutional Holding

1.1%

Insider Holding

60.5%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

11 Sept 2026

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 positive3 mixed2 general

Venky's (India) (NSEI:VENKEYS) - Stock Analysis

Simply Wall Street, 13 Oct

Venkateshwara Hatcheries declares no encumbrance on Venky's shares

scanx.trade, 28 May

Venkys India Share Price Target 2026: Expert Forecast, Growth Catalysts and Key Risks

Univest, 07 MayAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Venky's (India) standalone net profit rises 215.79% in the June 2026 quarter

Business Standard, 11 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Venky's (India) Q1 Results 2026 - Find Venky's (India) Q1 Earnings Result | VENKEYS Q1 results

Livemint, 27 AprResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Venky’s India Posts ₹26.5 Cr Q2 Loss; Stock Price Hits 52‑Week Low

HDFC Sky, 07 NovResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

All 5 tripwires holding · see Key things to watch ↑