I am quite bullish with Chicken due to following. It is purely based on positive outlook of the poultry industry.
These counter have a huge potential due to;
1. Low supply of chicks in the local and international markets
2. Lowest ever grain prices
3. Increased demand for chicken domestically due tourism/increased consumer disposable income and internationally.
4. Projected escalating demand for Chicken due Christmas(December) and New year(April) seasons.
It is strongly recommended this trend up to next June on wards. Who ever patiently collected are winners with higher gains and we have already witnessed currently too.
Target Prices of Counters in June 2016
1. BFL - Rs 360/-
2 TAFL - Rs 190/-
3. GRAN - Rs 150/-
4. CIC.N - Rs 150/-
5. CIC.X - Rs 120/-
Further it is notable that even most of the above counters appreciated and still strong buying support is witness at these levels. However CIC.N and CIC.X have not witnessed its move from the blocks.
They have recorded a growth of 94% QoQ growth during 1Q 2015/16 FY. The above results were derived by an improved performance across most sectors with in the Group. The Agriculture and Livestock sector had an operating profit of Rs 473 million in the first quarter of 2015/16, an increase of 54% over the corresponding period last year.The increase in profitability is attributed to the performance of the agribusiness companies in the Group, including the dairy sector and CIC Feeds which showed a notable improvement from the previous year. 50% - 60% of the CIC group in concentrated on poultry business.
Many have sought after top 3 of the above list and CIC has a very good potential for all of us to gain at least 35% return if we enter at current price levels.
However all counters falls under the poultry industry are strongly recommended to buy considering this strong current financial earnings and very positive industry prospects to deliver significant profits with in next 2 years.