Venkys share price

[Rogerb]

Share price at a 52 week low today on concern over reduced profitability 

[simongarnerisgod]

Just now, Rogerb said:

Share price at a 52 week low today on concern over reduced profitability 

oh dear,what a shame,are they in serious trouble😆

[RevidgeBlue]

24 minutes ago, Rogerb said:

Share price at a 52 week low today on concern over reduced profitability 

What's the percentage reduction over the year?

[KentExile]

27 minutes ago, Rogerb said:

Share price at a 52 week low today on concern over reduced profitability 

 

[RevidgeBlue]

5 minutes ago, RevidgeBlue said:

What's the percentage reduction over the year?

Looked it up.

-18.34 %?

That's quite a lot.

[Norbert Rassragr]

That's like Tesla stock, but over a slightly longer time.

[wilsdenrover]

3 hours ago, RevidgeBlue said:

Looked it up.

-18.34 %?

That's quite a lot.

It’s worse than that (or better depending on your perspective…):

Edited July 30 by wilsdenrover

[Tomphil2]

Definitely no coin coming our way for the bills now then and the push to sell Brittain will ramp up.

By the way have Hyam, Travis and Tronstad been offered their contract extensions yet ?

Way more to this than the farcical court case and always has been i hope the bank calls in its VH debt !

[Upside Down]

Maybe we should all have a whip round and buy venkys.

We can asset strip the fuck out of it and spend all the money on Rovers.

Edited July 30 by Upside Down

[47er]

12 hours ago, wilsdenrover said:

It’s worse than that (or better depending on your perspective…):

Great news!!

[philipl]

Remember the portion of the publicly quoted company they still own is a tiny fraction of the family wealth.

 

[cesus]

Their stubbornness knows no bounds, the faultless business empire that Daddy left them which funds their life starting to crumble would be our best hope. Long may it continue.

[philipl]

4 minutes ago, cesus said:

Their stubbornness knows no bounds, the faultless business empire that Daddy left them which funds their life starting to crumble would be our best hope. Long may it continue.

That is not going to happen and despite Rovers and extravagant birthday parties, the "kids" plus Mr Desai have done much better at managing and growing their inheritance than Jack Walker's heirs have with their's.  

[Tomphil2]

 

20 minutes ago, philipl said:

Remember the portion of the publicly quoted company they still own is a tiny fraction of the family wealth.

 

How much is liquidity ?

Also they don't put it into Rovers so do they put it back into the core businesses or just borrow more ?

To be fair their company credit rating as off last year was still strong but carries the warnings about the volatility of their market, the rise in costs AND it mentioned them still having fund a massive loss making foreign entity !

Oh and the seizure of assets.

So owning and funding the football club is now potentially having an impact on their main business if not their overall personal wealth.  

They've stopped funding it but won't stop owning it.

Edited July 31 by Tomphil2

[Crimpshrine]

The share price has always been volatile. Glad to see it dropping but it is still quite a lot higher than it was when they first bought the club. They benefitted massively from the beef ban in India a few years ago and their shares sky rocketed by about 400% so they are still in a fairly good position I would think. Sadly

[Tomphil2]

Their costs have rocketed post covid/Ukriane like most other businesses and it has impacted their profit margins significantly although i think they still corner the market over their across the whole chicken spectrum.

Investing in it though is probably a lot less attractive than it was 5 years ago.

[philipl]

Indian Chicken feed is a classic business with a moat. Difficult to exploit for profit maximisation but Venky's has a national logistics set up nobody else is remotely likely to want to compete against because of the low ticket/low margin and limited opportunity for diversification- there is only so much penicillin etc. a chicken is able to pop down.

[Rogerb]

1 hour ago, Crimpshrine said:

The share price has always been volatile. Glad to see it dropping but it is still quite a lot higher than it was when they first bought the club. They benefitted massively from the beef ban in India a few years ago and their shares sky rocketed by about 400% so they are still in a fairly good position I would think. Sadly

All very true but these businesses are like super tankers once they start moving in a particular direction it takes a long time to turn them around. All the recent evidence suggests things are declining at present 

[Rogerb]

79 per cent reduction in quarterly profit for June 30 figures due shrinking chicken business 

[Tomphil2]

Another massive coincidence then that it comes just at the same time there's a can kicking down the road court contest going on.

If there was no court case this last couple of years funding would STILL be severely reduced it's chicken business profit that runs Rovers and when there is non, there is no cash we've seen this before.

[paullarrygher]

Venky's share price is 10x what it was when they bought the club. The VH Group conglomerate and the personal wealth of the Raos is huge. There's money but there's no intention of spending it on Rovers.  
 

[Tomphil2]

They run Rovers via the VH group profits though that is clearly how it's done and must provide some handy accounting benefits back in India.

It's 15 years now since they bought Rovers so allowing for inflation, expansion, borrowings and the cost base explosion of raw materials needed to run that business profits are bound to be hit.

It doesn't matter what it or they are worth they don't use their personal wealth unfortunately it is imo all about the profit from the core company  and this isn't defending them it's just the reality of how things are done.

Would be interesting seeing if there is any real correlation between share price/profit of VH group and the money they've chucked into Rovers. I'm sure i recall share prices at historical highs when they were allowing the Armstrong's and Gallagher's to be bought but i may be wrong.

They have seemed to like funding a mass loss making overseas entity for some reason until recently though.

[lraC]

Dear Mr Balaji Rao,

Just a quick heartfelt note, to wish you and your family, all the best in these turbulent times. It isn't easy running a chicken business, but rest assured that all of us Rovers fans, are eating as much chicken as we can, not to mention eggs and other related products.

We will continue to monitor your share price and your sector daily, but we can guarantee we are all 100% behind you and will ensure our baby is still alive and kicking as the years tick buy.

Yours Mr A R Bot.