Venkys (India) Ltd (VENKEYS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bajaj Consumer

Jindal Photo

ADF Foods

HMA Agro Inds.

Eveready Inds.

Prataap Snacks

Tasty Bite Eat.

Godavari Bioref.

Venky's (India)

Andrew Yule & Co

Anondita Medi.

Why is Venkys (India) Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 4.02% and Operating profit at 18.67% over the last 5 years

Negative results in Sep 25

PAT(9M) At Rs 2.60 cr has Grown at -97.77%
ROCE(HY) Lowest at 3.38%
INVENTORY TURNOVER RATIO(HY) Lowest at 12.78 times

With ROE of 1.6, it has a Very Expensive valuation with a 1.3 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -25.90%, its profits have fallen by -78.8%

Despite the size of the company, domestic mutual funds hold only 0.01% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.90% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Venky's (India) for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Venky's (India)

-25.9%

-0.96

27.12%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.02%

EBIT Growth (5y)

18.67%

EBIT to Interest (avg)

7.44

Debt to EBITDA (avg)

1.32

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

2.55

Tax Ratio

38.77%

Dividend Payout Ratio

12.47%

Pledged Shares

Institutional Holding

1.45%

ROCE (avg)

13.35%

ROE (avg)

9.58%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.31

EV to EBIT

188.43

EV to EBITDA

37.85

EV to Capital Employed

1.34

EV to Sales

0.52

PEG Ratio

Dividend Yield

0.74%

ROCE (Latest)

0.71%

ROE (Latest)

1.58%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 200.63 cr

-18What is not working for the Company

PAT(9M)

At Rs 2.60 cr has Grown at -97.77%

ROCE(HY)

Lowest at 3.38%

INVENTORY TURNOVER RATIO(HY)

Lowest at 12.78 times

PBDIT(Q)

Lowest at Rs -31.14 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at -3.89%

PBT LESS OI(Q)

Lowest at Rs -45.44 cr.

EPS(Q)

Lowest at Rs -18.83

Loading Valuation Snapshot...

Here's what is working for Venky's (India)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 200.63 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Venky's (India)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -45.44 cr has Fallen at -575.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 9.56 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -26.53 cr has Fallen at -285.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 14.32 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Lowest at 12.78 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit (PBDIT) - Quarterly

Lowest at Rs -31.14 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at -3.89%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -45.44 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -18.83

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)