This FMCG stock that operates in the poultry industry rose 3.6 percent to ₹1,638.65 per share on Wednesday after the company began its commercial production to manufacture animal health products in its Maharashtra facility.
At 11:40 a.m., Venky’s Ltd shares were trading at ₹1,610 per share, up 1.85 percent on the National Stock Exchange from the previous close price. The company has a market capitalization of ₹2,267 crore.
According to the filing, the company has started commercial production at its facility in Vill. Kesurdi, Tal. Satara, Maharashtra, for manufacturing veterinary medicine products as part of its Animal Health Product Segment.
This project, aimed at meeting the increasing demand from the poultry industry, involves the production of veterinary medicine powders (600 Tonnes/Annum) and veterinary medicine liquids (300 Kilolitres / Annum).
The company experienced an 8% decline in its annual revenue, dropping from ₹1,035 crore in Q3FY23 to ₹953 crore in Q3FY24. Concurrently, its net profit plummeted from ₹16.53 crore to a loss of ₹7.94 crore during the same period.
Over the past six months, Venky’s shares have fallen by 19%, while in the last 12 months, they have decreased by 6%.
Venky’s India Ltd, a division of the VH Group, primarily focuses on poultry breeding and chicken meat processing.
The company operates in three main business segments: poultry and poultry products, animal health products, and the oilseed segment.
Venky’s is a key supplier to various QSRs and international chains such as KFC, Pizza Hut, Taco Bell, Vista Foods, and McDonald’s, alongside its partnerships with B2B and B2C retail chains like Walmart, Metro Cash, Star Bazar, and Future Retail.
As the largest player in India’s regulated poultry market, the group boasts 14 express outlets for processed chicken and has established a nationwide presence, with Venky’s predominantly focusing on the northern and southern regions of India. Additionally, Venky’s holds a prominent position as one of Asia’s largest producers of SPF eggs.
The company generates 39% of its revenue from poultry and poultry products, 6% from animal health products, and 55% from the oilseed segment. It operates three soya processing plants in Maharashtra, with a combined installed capacity of 5.4 lakh MTPA.
Written by Omkar Chitnis
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