Shares of Venky's (India) Ltd fell sharply in Monday's trade, pausing their three-day upward run. The stock plummeted 14.89 per cent to hit a day low of Rs 1,925 over its previous close of Rs 2,261.70. The counter has slipped 8.15 per cent in a year but has crawled 3.78 per cent higher on a year-to-date (YTD) basis. Today's steep fall came after the poultry firm reported a more than 60 per cent plunge in its first-quarter profit.
The Pune-headquartered firm said profit for the June quarter came in at Rs 19.41 crore as against Rs 49.28 crore in the year-ago period. Total revenue from operations fell 18.39 per cent to Rs 976 crore, dragged down by a 30 per cent slump in biggest earner oilseed segment. The poultry business, which accounts for 43 per cent of total sales, saw a dip of 6.4 per cent.
"Profit margins of the poultry and poultry products segment have been affected due to lower realisations from sale of day-old chicks and grown-up birds," the company stated.
"Oilseed segment registered lower sales and profits. Its margins were also affected on account of lower realizations from the sale of finished goods i.e. de-oiled cake and oil. Performance of animal health products segment has been good," it further said.
On the technical setup, the stock traded lower than the 5-day and 10-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-, 100-, 150-, and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 53.53. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 45.21 against a price-to-book (P/B) value of 2.45.
The scrip has a one-year beta of 0.79, indicating low volatility.
Around 94,000 shares changed hands today on BSE, higher than the two-week average volume of 13,000 shares. Turnover on the counter came at Rs 19.54 crore, commanding a market capitalisation (m-cap) of Rs 2,775.13 crore. There were 11,627 sell orders over buy orders of 5,187 shares.
Venky's (India) Limited is engaged in the poultry sector that includes production of specific pathogen free (SPF) eggs, chicken and eggs processing, broiler and layer breeding, animal health products, poultry feed and equipment and soya bean extract, among others. The company's segments include poultry and poultry products, animal health products and oilseed.
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