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Is it right time to invest in Venkys?

Discussion in 'Investment Analysis' started by mailtoswarup, Mar 15, 2020.

  1. mailtoswarup

    mailtoswarup Member

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    As we all know for last few months venkys is falling like anything from 4800 levels. Now because of the Corona scare and rumours the chicken prices have dropped sharply. Right now Venkys is on 200EMA support on monthly chart. When the corona scare will go away the chicken prices will be back to normal. So is it right time to buy Venkys ?
    Shabbir and all other gentlemen please give your feedback.

    Sent from my Redmi Note 3 using DIY Technical Analysis mobile app
     
  2. shabbir

    shabbir Administrator Staff Member

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    In this market condition, technicals are not something to invest in. It is fundamentals.

    So I don't think this is the right time to invest in Venkys because it has been making a loss in the last 2 quarters because of higher raw material prices. Once that is seen in the quarterly results then only one can consider. If the company continue to make losses, things can get really ugly from here on.

    There are companies where share prices has fallen but not the product prices that they sell. Examples are soaps, hand sanitizers. Moreover, there are large cap companies available at very good valuations. Companies like Hero Moto as an example. Sales has gone down and foot fall has fallen sharply but when things normalize will Venkeys be in a better position or Hero Moto? My view is the later.

    So opt for better business that aren't made losses than companies that have made loss in past 2 quarterly results.
     
  3. mailtoswarup

    mailtoswarup Member

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    shabbir likes this.
  4. shabbir

    shabbir Administrator Staff Member

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