Value Pick for Sep'09 - Target surpassed, more than 120% gain in a matter of just 5 months, against a stipulated time of 8-12 months

While the major indices have been correcting across the world, our "Business Insight" and "Value pick" recommendations have held their ground, and have rather performed well.

We are glad to announce today, that our Value pick for the month of September - Venkys India Ltd. (BSE Code - 523261), has surpassed our target (100% gain) with more than 120% gain and that too in a matter of 5 months, while the stipulated time was 8-12 months.

Remember, this is just one of the recommendations under "Penny Stock Package". There are 12 "Business Insight", 12 "Value Picks" and around 24 "Instant Profit" recommendations provided under "Penny Stock Package".

All the readers of this post can find the recommendation on "Venky's India Ltd." on the link provided (LINK)

To access the report on "Business Insight Nov'09 - Sumeet Industries Ltd.", that has been made public, please click Here

Venkys India Ltd. (BSE Code - 523261) was suggested as "Value Pick" for the month of September to all our paid subscribers of "Penny Stock package". Value pick recommendations are suggested from a medium term perspective (8-12 months) with an expected gain of 70-100%. These stocks generally have some triggers in place and are grossly undervalued, thus the downside is almost nil.

Venkys was suggested at a price of Rs 144. Today the stock touched a high of Rs 324 (a gain of more than 125%) and ended the day at Rs 316. Here I would like to mention that the company has been doing exceptionally well. This is because for the nine months ending Dec'09, the company has registered a net profit of Rs 33 cr, while it registered a net profit of Rs 20 cr for the entire Financial year 2008-09.


Although you can find the entire article on the link provided above, here are some excerpts from the same :

Venky's India

Venky's (India) Ltd (VIL) formerly known as Western Hatcheries (WHL) was incorporated in 1976 and is a part of Rs.1300 crore Venkateswara Hatcheries (VH) Group The company, engaged in poultry breeding, producing eggs and hatching layer and broiler chicks and is one of the most integrated poultry player in the country. It is also involved in rearing of pureline breeds, grandparent and parent stock, sale of commercial day old chicks (DOCs), processed chicken, as well as related requirements of the sector such as poultry feed, medicines and health products.

Inflation and other growth drivers

Although the figure for WPI (Wholesale Price index) is negative, but if one considers the CPI (Consumer price Index), then its very clear that the common man is still reeling under the pressure of increasing food prices. Everyone is aware that prices for vegetables and other food items have skyrocketed. Prices of all commodities - be it rice, wheat or vegetables are going up. I think this is going to lead to increased demand for poultry products, of course there are some very evident risk in their business that of the bird flu, which affect the sentiments for sometime, but such news remain largely shortlived.

The vast gap between our present per capita consumption (52 eggs and 3.1 kg of poultry meat) and National Institute of Nutrition (NIN) recommended level (180 eggs and 11 kg of poultry meat) offers a tremendous opportunity for the growth of poultry industry for several years to come.


For more details on the same, plz follow the above provided link.

To contact the Lead Associate on this story: Ekansh Mittal in Noida (New Delhi) at Ekansh@hbjcapital.com