Kotak Securities is bearish on Venky’s India has recommended sell rating on the stock with a target price of Rs 3700 in its research report dated April 11, 2018.
Kotak Securities' research report on Venky’s India
Venky’s stock has now run up 216% since we initiated coverage (July, 2017) on the stock. In the last three months, the stock has appreciated 85%, as strong earnings performance in recent quarters has led to better perception among investors, aiding a re-rating. In our last update (March, 2018), we had noted signs of weakening poultry prices.
OutlookGiven the weakness in poultry prices over the past six weeks, the run-up in the stock over the past month has likely been excessive, and takes for granted a significant rise in poultry prices. We believe there is a high likelihood of a significant decline in Venky’s stock over the next year. We downgrade the stock to SELL, with a price target of Rs 3700.
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