Venkys trade with a positive breakout; here is why it should be on your watchlist!

The share price of Venky’s, a poultry processing company soared by more than 12 per cent on Wednesday. The stock witnessed a breakout with rising volumes and is trending on bourses owing to a fresh development. 

The GOI has recently announced to import 12 lakh tones of GM Soya cake that is used for poultry chickens. These imports will help resolve the demand-supply constraint of the poultry chicken feed, thus helping the industry. The poultry companies have been demanding for long time for the import of GM soya cake as the prices hit the roof owing to short supply in India.

This development is positive for Venky’s along with Avanti Feeds. 

The shares of Venky’s crossed its 30D EMA are trading above the 9D EMA indicating bullishness. The stock is down by ~20 per cent from its 52-week highs. Venky’s is a high ROE company reflecting higher management efficiency. Its ROE is greater than the industry average ROE. 

The share price of Venky’s has almost doubled in one year while in 2021 alone the stock has increased by 66 per cent. In one month the stock price of Venky’s has slipped by more than 7 per cent.