Venkys spread its wings and soars 5 per cent; here is why!

The stock of Venky’s (India) Ltd jumped over 5 per cent on Monday and also, witnessed a trend day.  

A Trend Day is a day in which, the price of a stock moves consistently away from the opening range and does not return to the opening range prior to the close.   

The stock has recorded its highest single-day volume since December 2, 2021, and also, surpassed its 10-day as well as 30-day average volume.   

So, let’s know what the buzz in the stock is. The company is setting up a new project for manufacturing veterinary medicine products under its animal health product segment. Venky’s (India) Ltd has acquired land admeasuring 15,030 sqm at MIDC, Satara district (Maharashtra) for this purpose. Construction activities will commence in December 2021 and the project is likely to be completed by March 2022 while its commercial production will kick off by June 2022.  

This project is to manufacture veterinary medicine powder (600 tonnes/annum) along with veterinary medicine liquid (300 kilolitres/annum) to cater to the growing demand from the poultry industry. 

Meanwhile, the total cost of the project is estimated to be at Rs 30 crore, which will be funded from internal accruals.  

The proposed plant, which will cater to export needs and be in compliance with the latest FDA regulation, is the second plant of the company. The first one is located in Pune (Maharashtra), which has a capacity of 600 tonnes/annum and is utilised to the extent of 70-80 per cent.