Avanti Feeds stock up 2% as co starts ops post capacity addition
The stock rose for the third consecutive session today. The stock is currently trading at Rs2,241, up by Rs48.25 or 2.2% from its previous closing of Rs2,192.75 on the BSE.
The scrip opened at Rs2,189.70 and has touched a high and low of Rs2,256 and Rs2,189.70 respectively.
Avanti Feeds is a leading manufacturer and exporter of shrimp feeds and shrimp processor. The company also operates windmill with an installed capacity of ~3.2 megawatts in Karnataka. It derived ~82% revenue from shrimp feeds and ~18% revenue from processed shrimp during 9MFY18.
There is a huge domestic and export demand to be met as India imports 50% of the aquafeeds requirement. This is backed by FY18-19 Union Budget allocation of Rs10,000cr for aquaculture and fishery industry. Overall, we see revenue CAGR of ~25% over FY18-20E. Also, the management is aiming to increase its market share to 50-55% (current ~46%) over FY17-20E. We expect EBITDA to stabilize at ~18% in FY20E after completing commissioning of new capacity. Overall, we see PAT CAGR of ~17% over FY18-20E. It is virtually a debt free company which lends financial stability.