Venky's – Worst is behind, demand on the mend
The change in consumer preference provides the company an opportunity to augment its portfolio and enhance its presence in the ready-to-eat and ready-to-cook non-veg food market.
October 29, 2020 / 08:44 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Poultry-producer Venky's faced a multifront onslaught from COVID-19. Between February and April, the volumes and prices of broiler chicken plunged owing to rumours linking it with the spread of coronavirus infection. However, the worst seems to be over as those fears have subsided and consumers have resumed consumption of meat and poultry products. There are signs that demand has begun to recover, which should result in improvements going forward.
Quarterly results highlights
In FY20, Venky’s topline grew at a healthy pace, but profitability...