Venky’s India is another cyclical play whose margin depends on Soya prices. Currently margins are at the bottom of the cycle. PAT is around 1-2% of revenue. Also the stock has bottomed. Good chances of mean reversion from here. A similar play is Godrej Agrovet. Godrej Agrovet is trying to diversify equally into non-cyclical businesses to mitigate the effect of cyclicality in bottom line. Both companies have revenues increasing around 15% CAGR.
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