Venky's (India) (VENKEYS)
CyclicalFairStock Score: 41/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,528 |
| Market Cap | ₹2,152.54 Cr |
| P/E Ratio | 15.46 |
| ROCE | 11.25% |
| ROE | 3.45% |
| Dividend Yield | 0.66% |
| Profit Growth | 215.7% |
| Debt/Equity | 0.1 |
| Sales Growth | 29.2% |
| Promoter Holding | 56.11% |
| 52-Week Range | ₹1,165 — ₹1,800 |
| Sector | Food Products |
| Book Value | ₹1,133.02 |
Strengths
- Low leverage with debt-to-equity of 0.13
- Promoter holding at 56.11% aligns interests with minority shareholders
- Piotroski F-Score of 7/9 indicates improving financial health
- Sales growth of 8.91% shows stable top-line expansion
- ROCE of 11.25% is reasonably above cost of debt
Concerns
- P/E of 37.10 and P/B of 1.50 look expensive relative to ROE of 3.45%
- 138% profit growth seems cyclical or low-base; latest quarter profit of ₹49 Cr nearly equals trailing full-year earnings of ~₹51 Cr
- Dividend yield of 0.74% offers little reward while waiting
- FairStock Score of 38/100 signals mixed fundamentals with a thin margin of safety
AI Analysis
At a glance, Venky's is the kind of business that looks interesting until you check the economics. Yes, the balance sheet is clean with debt-equity of just 0.13 and promoters own 56%. A Piotroski score of 7 suggests the company has been mending fences. But I buy businesses to earn a return on equity; here the ROE sits at 3.45%. That is poor. The ROCE at 11.25% is acceptable, but the gap to ROE shows minority or tax drag. Sales grew 8.91%, respectable, but the eye-popping 138% profit growth deserves suspicion. The latest quarter net profit of ₹49 Cr is almost the entire trailing net profit of about ₹51 Cr implied by its market cap and P/E. That tells me the reported profit jump is either a one-off or not yet repeated over four quarters. At ₹1,565, the stock trades at 37.1 times earnings and 1.5 times book. For a 3.45% ROE, paying 1.5 times book is not a Graham bargain. The PEG of 0.50 is seductive, but only if the profit growth is sustainable, and cyclical poultry earnings are rarely sustainable. The dividend yield is just 0.74%, so I am not being paid to wait. FairStock Score 38 is apt: mixed signals. As value investors, we should neither chase nor short. We wait for a better price or evidence that this profit quality improves over several quarters. If the business can convert the current surge into steady earnings, then maybe. But as of today, the margin of safety is thin.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer