An integrated poultry firm, Venky's India is into the business of poultry and poultry products, animal health products and oilseeds. The company holds a restaurant chain providing variety of processed chicken products. Its major part of revenue came from de-oiled cake for poultry feed (70%), grown-up commercial boilers (19%) and day-old commercial chicks S.P.F eggs (14%) in FY17. Big institutions have been increasing their stakes in the company. The institutional stakes have increased to
27% in March 2017 from December 2016 as the demand for chicken is consistently growing at 15-18% annually. Considering the latest quarter, the company posted a revenue and PAT growth of 7.2% and 25%, respectively, while the annual data shows 16.4% and 226% revenue and PAT growth, respectively, in FY17. Decline in maize prices (nearly 70% of raw material cost of Venky’s) would help the company maintain its operating efficiency going forward. Considering the consistent demand from Venky’s lovers, we recommend Buy in the scrip for a target of ₹2806 and with a stop loss of ₹2278.