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Avanti Feeds Ltd Stock Analysis

Mid Cap
Evaluated by 3904 users | BSE: 512573 | NSE: AVANTIFEED |
Consumer Food

Avanti has started its commercial operations in 1993 under the able leadership of Late Sri Alluri Venkateswara Rao in technical collaboration with Pingtai Enterpries, Taiwan. Later his son Sri Alluri Indra Kumar expanded the capacity and enhanced technical...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Avanti Feeds Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 5.16%24.51%20.24%34.25%41.09%40.01%35.86%45.95%20.82%22.11%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2083936481,1321,7812,0182,6163,3933,4884,115
Y-o-Y Gr. Rt.-89.4%64.7%74.6%57.4%13.4%29.6%29.7%2.8%18%
Adjusted EPS (Rs.) 0.222.542.255.088.310.9415.3531.9619.0323.82
Y-o-Y Gr. Rt.-1054.6%-11.4%125.8%63.4%31.8%40.3%108.2%-40.5%25.2%
Book Value per Share (Rs.) 5.797.89.1813.1819.4630.8746.6475.7188.51103.03
Adjusted Net Profit 2.730.530.769.2113149209435259324
Net Op. Cash Flow (Rs. Cr.) -7.750.4-20.655.689.3122278281184125
Debt to Cash Flow from Ops -7.050.98-2.971.010.650.090.070.020.050.01
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Avanti Feeds Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 39.4%18.2%16.3%18%
Adjusted EPS 68.3%23.5%15.8%25.2%
Book Value per Share 37.739.630.216.4
Share Price 61.4% 25.6% -12.7% 15.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 3.9537.1627.9345.450.8343.3439.5352.2423.1724.87
Operating Profit Margin (%) 3.7512.277.979.8610.2411.4612.720.1711.9311.09
Net Profit Margin (%) 1.37.764.766.056.397.468.4113.398.378.84
Debt to Equity 0.780.530.490.310.220.030.030.010.010
Working Capital Days 107666679615854555853
Cash Conversion Cycle 69434536272818162527
Entity Percentage Holding
Promoters 43.69%
Institutions 23.67%
Non-Institutions 32.64%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Avanti Feeds Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Avanti Feeds Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Avanti Feeds Ltd's performance infers:

Avanti Feeds Ltd earnings have grown by 23.5%, whereas share price has appreciated 25.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Avanti Feeds Ltd share prices over the last 10 years. Here is what we found out:

Avanti Feeds Ltd share price has appreciated 67.3% annually over the past ten years.

Avanti has started its commercial operations in 1993 under the able leadership of Late Sri Alluri Venkateswara Rao in technical collaboration with Pingtai Enterpries, Taiwan. Later his son Sri Alluri Indra Kumar expanded the capacity and enhanced technical and marketing capabilities by bringing on board Thai Union Frozen Products PCL., Thailand, the world's largest seafood manufacturers and also having Feed Mill and Prawn Hatchery in Thailand. Today, Thai

Avanti has started its commercial operations in 1993 under the able leadership of Late Sri Alluri Venkateswara Rao in technical collaboration with Pingtai Enterpries, Taiwan. Later his son Sri Alluri Indra Kumar expanded the capacity and enhanced technical and marketing capabilities by bringing on board Thai Union Frozen Products PCL., Thailand, the world's largest seafood manufacturers and also having Feed Mill and Prawn Hatchery in Thailand. Today, Thai Union is closely associated with Avanti Feeds with equity participation, technical collaboration and marketing tie-up in India.

Business area of the company

Avanti Feeds is the leading manufacturer of Prawn and Fish Feeds and Shrimp Processor and Exporter from India. Avanti Feeds Limited has established joint venture with Thai Union Frozen Products PCL., the world’s largest seafood processors and leading manufacturer of prawn and fish feeds in Thailand with integrated facilities from Hatchery to Shrimp & Fish processing and Exports.

Prawn and Fish Feed Manufacturing Units

Avanti has Four Prawn and a Fish Feed Manufacturing Units, certified ISO 9001:2008, in Kovvur, Vemuluru and Bandapuram in West Godavari District, Andhra Pradesh and Pardi in Valsad District, Gujarat, in India. Avanti produces nutritionally well balanced and high quality feed, consistently, catering to the Indian prawn and fish farmers, at their door step.

Shrimp Processing and Exports Unit

The Shrimp Processing and Exports Unit, certified ISO 22000: 2005 is located in Gopalapuram near Ravulapalem, East Godavari District Andhra Pradesh, India and confirms to HACCP, USFDA, EU & BRC Global standards. It is also an ACC Certified for best aquaculture practices.

Products

Prawn Feed

  • Profeed
  • Titan
  • Manamei
  • Champ

Scampi Feed

  • Classic
  • Scampro

Fish Feed

  • Mermaid

Awards and recognitions

  • 2015-16: Forbes magazine select the company as one of the top companies in Asia Pacific region and awarded ‘Best under a Billion” Company for the Year 2015.
  • 2015-16: Fortune India recognized the company as one of the most valuable medium-sized companies in India in the next 500 ranks. 
  • 2017-2018: Forbes India Leadership Award 2017 received by Sri Alluri Indra Kumar
  • 2018-2019: Business Today, Best CEO Award (Small Companies) - February 2019
  • 2018-2019: Dun & Bradstreet - Corporate Award 2019 for Best Growth Performance - Food Products held on 29th May 2019

History and milestones

  • 1994: Shrimp Feed Manufacturing Unit-I (20,000 TPA capacity) at Kovvur marks its first stride.
  • 1999: The Gopalapuram Block Freezing Shrimp Processing and Export Unit (3,000 TPA) takes off.
  • 2002: Shrimp Feed Unit-II (22,000 TPA capacity) goes on stream at Vemuluru.
  • 2002: Individually Quick-Frozen (IQF) Shrimp Processing Unit comes up at Gopalapuram.
  • 2003: The company sign a Technical Collaboration Agreement with Thai Union Feed Mill (P) Ltd, to upgrade and develop feed for L. Vannamei species.
  • 2004: Capacities of Unit-I and Unit-II (Kovvur) are enhanced to 60,000 TPA each.
  • 2006: Four windmills (3.2 MW capacity) are commissioned in Chitradurga (Karnataka).
  • 2009: The company introduced costeffective P. Vannamei shrimp culture, making Indian aquaculture globally competitive.
  • 2012: To meet the rising demand in Western India, the company’s third shrimp feed plant (60,000 TPA capacity) comes up at Pardi.
  • 2012: Shrimp processing capacity of its Gopalapuram IQF Unit is augmented to 7,000 TPA.
  • 2014: Shrimp feed manufacturing Unit-III (70,000 TPA capacity) comes up at Kovvur.
  • 2016: The company’s shrimp processing and exports business was divested to AFFPL (subsidiary) to secure global recognition.
  • 2017: Commissioned Unit-IV shrimp feed manufacturing plant at Bandapuram with a capacity of 1,75,000 MT per annum.
  • 2018: Doubled the feed manufacturing capacity at Unit-IV Bandapuram with a capacity of 1,75,000 MT per annum.
  • 2018: AFFPL commissions state-of-the-art shrimp processing and export plant (15000 TPA capacity) at Yerravaram.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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