Venky's (India) Limited (VENKEYS) AI Stock Analysis

• Market Cap: ₹17.51B
• Dividend Yield: 0.69%
• Average Volume (3M): 1.40K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.77
• Revenue Growth: -1.16%
• EPS Growth: -78.82%
• Country: IN
• Employees: 5,138
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 34.48
• Shares Outstanding: 14,087,336
• 10 Day Avg. Volume: 1,003
• 30 Day Avg. Volume: 1,396
• PEG Ratio: 0.42
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 114.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹1,268.00 ▼(-19.65% Downside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

Venky's (India) Limited's overall stock score is driven by a stable financial position with low debt and strong equity. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates overvaluation, which are significant concerns for potential investors.

Positive Factors

Low leverage / strong equity

A debt-to-equity of 0.11 and 71.2% equity financing provide durable financial stability and low bankruptcy risk. Low leverage supports resilience through poultry cycles, preserves borrowing capacity for capex or working capital, and reduces interest burden over the medium term.

Integrated poultry value chain

Vertical integration across breeding, farming, processing and animal health creates diversified revenue streams and control over input quality. This integration strengthens margins over time, enables cross-selling, and cushions the company against single-segment demand shocks.

Improving gross and net margins

Rising gross margin to 26.1% and positive net income growth despite revenue pressures indicate effective cost controls and pricing power. Sustained margin improvement supports long-term cash generation and reinvestment capacity if maintained through operational discipline.

Negative Factors

Declining free cash flow

A 35.2% decline in free cash flow and FCF only 18% of net income signal weak cash conversion. Persistent shortfalls constrain capex, working capital funding and dividends, and may force external financing during industry downturns, limiting strategic flexibility.

Earnings volatility / EPS deterioration

A steep EPS contraction (-62.6%) combined with reported revenue decline reflects earnings volatility tied to cyclical poultry markets and input cost swings. Such volatility makes long-term profit predictability weaker and complicates investment planning and stakeholder confidence.

Low operating margin and modest ROE

An EBITDA margin of 5.2% and ROE of 7.9% point to limited operational efficiency and modest shareholder returns. Without structural productivity gains or higher-margin product mix, profitability may struggle to generate strong long-term returns versus capital employed.

Venky's (India) Limited Business Overview & Revenue Model

Company Description

Venky's (India) Limited engages in the production and sale of poultry products in India. It operates through three segments: Poultry and Poultry Products, Animal Health Products, and Oilseed. The Poultry and Poultry Products segment produces and sells day old broiler and layer chicks, specific pathogen free eggs, processed chicken products, poultry feeds, and other miscellaneous poultry products. The Animal Health Products segment produces and sells medicines and other health products for birds. The Oilseed segment produces and sells edible refined soya oil and soya de-oiled cake. It also operates a quick service restaurant under the Venky's XPRS name. The company was formerly known as Western Hatcheries Limited and changed its name to Venky's (India) Limited. The company was incorporated in 1976 and is based in Pune, India. Venky's (India) Limited is a subsidiary of Venkateshwara Hatcheries Private Limited.

How the Company Makes Money

VENKEYS makes money primarily by selling poultry-related products and services across multiple integrated business lines. Key revenue streams typically include: (1) Poultry products and processing: revenue from the sale of chicken and poultry-based foods (including processed/frozen or value-added items where applicable) to retail consumers and to institutional buyers such as distributors, hotels, restaurants, and other food-service channels. Earnings in this segment are driven by volumes sold, product mix (fresh vs. value-added), and pricing linked to poultry market conditions. (2) Poultry breeding and commercial operations: revenue from supplying poultry breeding stock and/or day-old chicks to farmers and integrators, and from operating poultry farms; profitability depends on flock performance, hatchery output, and demand from the broader poultry farming ecosystem. (3) Animal health and nutrition: revenue from selling poultry and livestock health products (e.g., vaccines and therapeutics where applicable), feed additives, and supplements through veterinary and distribution channels; this stream benefits from recurring demand tied to farm health management and biosecurity requirements. (4) Other allied/ancillary income: if present in company reporting, this can include by-products and related poultry value-chain services. Across these streams, the company’s earnings are influenced by input costs (notably feed), poultry price cycles, disease/biosecurity conditions, distribution reach, and the degree of vertical integration that links breeding, farming, processing, and animal health.

Venky's (India) Limited Financial Statement Overview

Summary

Venky's (India) Limited shows a balanced financial position with strengths in its balance sheet, including low debt levels and strong equity. The income statement indicates profitability despite revenue challenges, while cash flow management needs improvement to ensure sustainable growth.

Income Statement

Venky's (India) Limited has shown a mixed performance in its income statement. Despite a decline in total revenue over the past year, the company has managed to improve its gross profit margin to 26.1% and net profit margin to 3.5%. The EBIT and EBITDA margins are relatively low at 17.3% and 5.2%, respectively, indicating challenges in operational efficiency. However, the net income has grown from the previous year, reflecting positive trends in cost management.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.11, indicating low leverage and conservative financing strategy. The return on equity stands at 7.9%, which is modest but shows profitability. The equity ratio is strong at 71.2%, suggesting a high proportion of assets financed by equity, providing financial stability. Overall, the balance sheet indicates a well-managed capital structure with low financial risk.

Cash Flow

The cash flow statement shows a decline in free cash flow over the past year, with a negative free cash flow growth rate of -35.2%. The operating cash flow to net income ratio is 0.57, suggesting moderate cash generation efficiency. The free cash flow to net income ratio is 0.18, indicating limited cash flow available for reinvestment and dividends. While cash flow management shows some weaknesses, the company maintains positive operating cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.91B	33.07B	37.38B	42.34B	44.00B	31.17B
Gross Profit	6.04B	8.64B	2.41B	7.48B	7.24B	8.10B
EBITDA	926.20M	1.72B	1.63B	1.49B	2.81B	4.22B
Net Income	229.80M	1.17B	790.68M	704.80M	1.65B	2.68B
Balance Sheet
Total Assets	21.08B	20.70B	20.94B	20.15B	19.47B	17.90B
Cash, Cash Equivalents and Short-Term Investments	3.13B	3.10B	2.01B	2.74B	739.26M	970.63M
Total Debt	1.89B	1.70B	1.72B	1.91B	1.99B	1.86B
Total Liabilities	6.57B	5.95B	7.24B	7.16B	6.98B	6.85B
Stockholders Equity	14.51B	14.76B	13.70B	12.99B	12.49B	11.04B
Cash Flow
Free Cash Flow	-354.10M	205.00M	316.13M	438.30M	-250.42M	2.06B
Operating Cash Flow	-152.60M	663.30M	819.73M	861.10M	50.28M	2.42B
Investing Cash Flow	56.90M	-382.70M	-366.25M	-265.50M	-186.53M	-459.44M
Financing Cash Flow	-36.60M	-301.40M	-468.71M	-450.30M	-338.75M	-1.48B

Venky's (India) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1578.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VENKEYS, the sentiment is Negative. The current price of 1578.15 is above the 20-day moving average (MA) of 1305.36, above the 50-day MA of 1428.08, and above the 200-day MA of 1475.64, indicating a bearish trend. The MACD of -50.58 indicates Negative momentum. The RSI at 39.24 is Neutral, neither overbought nor oversold. The STOCH value of 54.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VENKEYS.

Venky's (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKMEGGPROD	65 Neutral	₹8.47B	9.32	―	0.36%	12.43%	29.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PASHUPATI	62 Neutral	₹15.55B	120.13	―	0.06%	―	―
IFBAGRO	58 Neutral	₹6.74B	43.53	―	―	23.11%	1930.97%
VENKEYS	54 Neutral	₹17.51B	11.00	―	0.69%	-1.16%	-78.82%
FOODSIN	54 Neutral	₹3.90B	296.89	―	0.43%	11.46%	-0.46%

Venky's (India) Limited Corporate Events

Venky’s (India) Reports Profitable Q3 and Nine-Month FY2025 Results

Venky’s (India) Limited reported its audited financial results for the quarter and nine months ended 31 December 2025, approved by the board on 9 February 2026 after review by the audit committee. The company posted quarterly revenue from operations of Rs 95,015 lakh and total income of Rs 96,998 lakh, with total expenses of Rs 90,384 lakh leading to a profit before tax of Rs 6,614 lakh and profit for the period of Rs 4,858 lakh.

On a nine‑month basis, revenue from operations reached Rs 2,62,685 lakh and total income Rs 2,65,871 lakh, against total expenses of Rs 2,60,590 lakh, resulting in profit before tax of Rs 5,281 lakh and profit for the period of Rs 1,788 lakh. Earnings per share for the nine months stood at Rs 26.89, indicating a profitable period and underscoring the company’s ability to maintain margins despite cost pressures in materials and other operating expenses.