Venkys (India) Stock Hits 52-Week Low at Rs.1317 Amidst Continued Downtrend

Nov 24 2025 10:25 AM IST
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Venkys (India) has reached a new 52-week low of Rs.1317, marking a significant decline amid a three-day losing streak. The stock’s recent performance contrasts with broader market gains, reflecting ongoing pressures within the FMCG sector.



Recent Price Movement and Market Context


On 24 Nov 2025, Venkys (India) recorded its lowest price in the past year at Rs.1317. This level represents a notable drop from its 52-week high of Rs.2025.6. Over the last three trading sessions, the stock has declined by approximately 2.42%, trading within a narrow range of Rs.13 on the latest day. The day’s performance showed a fall of 0.62%, underperforming the FMCG sector by 0.59%.


In contrast, the broader market has exhibited strength. The Sensex opened 88.12 points higher and was trading at 85,387.57, a 0.18% gain, approaching its 52-week high of 85,801.70. The Sensex has been on a three-week consecutive rise, gaining 2.61%, supported by mid-cap stocks which led with a 0.21% increase in the BSE Mid Cap index. The Sensex’s 50-day moving average remains above its 200-day moving average, signalling a bullish trend overall.



Technical Indicators Reflect Weak Momentum


Venkys (India) is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning indicates sustained downward momentum and a lack of short-term recovery signals. The stock’s consistent trading below these averages contrasts with the broader market’s bullish technical setup.




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Financial Performance Over the Past Year


Venkys (India) has experienced a return of -21.83% over the last twelve months, a stark contrast to the Sensex’s 7.93% gain during the same period. The stock’s performance has consistently lagged behind the benchmark indices, including the BSE500, over the past three years.


Profitability metrics have shown considerable pressure. The company reported a quarterly PAT of Rs. -26.53 crores, reflecting a decline of 285.3% compared to the previous four-quarter average. The half-year return on capital employed (ROCE) stood at 3.38%, one of the lowest levels recorded. Inventory turnover ratio for the half-year was 12.78 times, also at a low point.


Return on equity (ROE) is at 1.6%, while the price-to-book value ratio is 1.3, indicating a valuation premium relative to peers’ historical averages. Despite the company’s size, domestic mutual funds hold a minimal stake of 0.01%, which may reflect a cautious stance given the current valuation and financial trends.



Long-Term Growth and Valuation Considerations


Over the last five years, net sales have grown at an annual rate of 4.02%, while operating profit has shown an 18.67% annual rate. These figures suggest modest growth in revenue alongside a relatively higher operating profit margin. The company maintains a low average debt-to-equity ratio, effectively at zero, indicating limited leverage on its balance sheet.


However, the combination of subdued growth, declining profitability, and valuation premium has contributed to the stock’s subdued market performance. The stock’s consistent underperformance against the benchmark indices over multiple years highlights ongoing challenges in aligning market expectations with financial outcomes.




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Sector and Market Comparison


Within the FMCG sector, Venkys (India) has not kept pace with sectoral gains or the broader market rally. While the Sensex and mid-cap indices have shown positive momentum, the stock’s price trajectory and financial indicators suggest a divergence from sector trends. The stock’s trading below all key moving averages further emphasises its current relative weakness.


The company’s valuation metrics, including price-to-book and return ratios, place it at a premium compared to peers, despite the subdued financial performance. This disparity may contribute to the cautious market response reflected in the stock’s recent price movements.



Summary of Key Metrics


To summarise, Venkys (India) has reached a 52-week low of Rs.1317, following a three-day decline and underperformance relative to the FMCG sector and broader market indices. The stock trades below all major moving averages, signalling continued downward pressure. Financial results show a significant fall in quarterly profits, low return on capital employed, and a modest growth rate over five years. Valuation remains elevated relative to peers, with a low debt profile.


These factors collectively provide a comprehensive view of the stock’s current position within the market and sector context.






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