This chicken-and-egg play zoomed 1500% in 3 years
How could you have turned Rs 5000 into Rs 75,000 in just three years? All you had to do was invest in a pure chicken and egg player. Yes! Riding on the defensive consumption theme, a packaged food maker has been doing wonders on Dalal Street, rallying over 1500 per cent in the last three years! While the broader market went through a correction, this stock rose over 47 per cent year to date, hitting multiple lifetime highs during the same period. The company’s net profit also grew a whopping 266.48 per cent in the last three financial years to Rs 124.75 crore by FY17.
The stock is none other than Venky’s India, the country’s only listed poultry firm. Even after a strong run-up in the stock and earnings, analysts still expect the share price to double in next two-three years as the growth prospects for the company look favorable. Venky’s India’s valuations have expanded significantly too, however, these look sustainable, say prit patel.