Please refer to important disclosures at the end of this report
Avanti Feeds is the leading manufacturer of Prawn and Fish Feeds and Shrimp
Processor and Exporter from India. The company has shown consistent growth in
revenue has improved from `393Cr in FY12 to `2732Cr in FY17 as well as profit
has increased from ` 28Cr in FY12 to `226Cr in FY17. The management has
guided to maintain its operational margins at 15% in the coming years. Avanti
Feeds was short on feed capacity in Q1FY18, which resulted in shortage of
supply. However, the company is expanding its feed capacity by 175,000 MT,
which is likely to become operational in March 2018. Also, additional feed
processing capacity of 15,000 MTPA is under trial and commercial operation of
the same in expected to start in Q2FY18. The current market share of Avanti
Feeds is ~43% and management is aiming to increase it to 50-55% over the next
two years. It is likely to emerge as the biggest beneficiary of the rising feed
demand and could become the largest shrimp exporter in the world in the
coming few years. It has shown good consistent profit growth of 48.65% over 5
years and has a good return on equity (ROE) track record for last 3 Years ROE
45.64%. The company has been maintaining a healthy dividend payout of
17.50% and has been generating healthy cash flow from `50Cr in FY12 to `
291Cr in FY17. Avanti Feeds has a RoE 50.77% and is trading at a valuation P/E
of 27x of FY17 TTM earnings. Hence BUY.
CMP `1929
52 Week High / Low
Avg. Daily Volume
Other Food Products
Market Cap (` cr)
BSE Sensex
Face Value (`)
Reuters Code
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Avanti Feeds Ltd
Others | Other Food Products
August 21, 2017
Avanti Feeds Ltd |Other Food Products
June 5, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Avanti Feeds
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)