BSE:512573

Stock Analysis Report

Executive Summary

Avanti Feeds Limited manufactures, processes, exports, and supplies shrimp feeds in India, the United States, and internationally.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Avanti Feeds's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 512573's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.0%

512573

3.6%

IN Food

-2.9%

IN Market


1 Year Return

-27.3%

512573

-3.2%

IN Food

-29.3%

IN Market

Return vs Industry: 512573 underperformed the Indian Food industry which returned -3.2% over the past year.

Return vs Market: 512573 exceeded the Indian Market which returned -29.3% over the past year.


Shareholder returns

512573IndustryMarket
7 Day4.0%3.6%-2.9%
30 Day-36.0%-16.3%-26.5%
90 Day-47.9%-11.5%-28.5%
1 Year-25.5%-27.3%-1.8%-3.2%-27.9%-29.3%
3 Year25.4%20.1%45.1%40.6%-15.4%-20.0%
5 Year206.9%186.8%87.9%78.8%-3.3%-8.3%

Price Volatility Vs. Market

How volatile is Avanti Feeds's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Avanti Feeds undervalued compared to its fair value and its price relative to the market?

43.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 512573 (₹296.65) is trading below our estimate of fair value (₹525.65)

Significantly Below Fair Value: 512573 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 512573 is poor value based on its PE Ratio (12.3x) compared to the Food industry average (10.3x).

PE vs Market: 512573 is poor value based on its PE Ratio (12.3x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: 512573 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 512573 is overvalued based on its PB Ratio (3x) compared to the IN Food industry average (0.7x).


Next Steps

Future Growth

How is Avanti Feeds forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

17.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 512573's forecast earnings growth (17% per year) is above the savings rate (6.5%).

Earnings vs Market: 512573's earnings (17% per year) are forecast to grow slower than the Indian market (19.6% per year).

High Growth Earnings: 512573's earnings are forecast to grow, but not significantly.

Revenue vs Market: 512573's revenue (12.5% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 512573's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 512573's Return on Equity is forecast to be high in 3 years time (23.9%)


Next Steps

Past Performance

How has Avanti Feeds performed over the past 5 years?

19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 512573 has high quality earnings.

Growing Profit Margin: 512573's current net profit margins (8.3%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: 512573's earnings have grown by 19.2% per year over the past 5 years.

Accelerating Growth: 512573's earnings growth over the past year (13.5%) is below its 5-year average (19.2% per year).

Earnings vs Industry: 512573 earnings growth over the past year (13.5%) underperformed the Food industry 20.6%.


Return on Equity

High ROE: 512573's Return on Equity (23.9%) is considered high.


Next Steps

Financial Health

How is Avanti Feeds's financial position?


Financial Position Analysis

Short Term Liabilities: 512573's short term assets (₹14.7B) exceed its short term liabilities (₹3.3B).

Long Term Liabilities: 512573's short term assets (₹14.7B) exceed its long term liabilities (₹321.0M).


Debt to Equity History and Analysis

Debt Level: 512573's debt to equity ratio (0.03%) is considered satisfactory.

Reducing Debt: 512573's debt to equity ratio has reduced from 23.7% to 0.03% over the past 5 years.

Debt Coverage: 512573's debt is well covered by operating cash flow (47818.3%).

Interest Coverage: 512573 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 512573 has a high level of physical assets or inventory.

Debt Coverage by Assets: 512573's debt is covered by short term assets (assets are 2774.2x debt).


Next Steps

Dividend

What is Avanti Feeds's current dividend yield, its reliability and sustainability?

1.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 512573's dividend (1.69%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 512573's dividend (1.69%) is low compared to the top 25% of dividend payers in the Indian market (4.18%).


Stability and Growth of Payments

Stable Dividend: 512573 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 512573's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.6%), 512573's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 512573's dividends in 3 years are forecast to be thoroughly covered by earnings (12.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.6yrs

Average management tenure


CEO

Alluri Kumar (57yo)

18.17s

Tenure

₹167,831,000

Compensation

Sri. Alluri Indra Kumar has been Managing Director at Avanti Feeds Ltd. since July 1, 2007 and as its Chairman of the Board since February 7, 2014. Sri. Kumar served as an Executive Director of Srinivasa C ...


CEO Compensation Analysis

Compensation vs Market: Alluri's total compensation ($USD2.23M) is above average for companies of similar size in the Indian market ($USD348.93K).

Compensation vs Earnings: Alluri's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Alluri Kumar
Chairman & MD18.17yrs₹167.83m12.13% 4.9b
C. Rao
Joint MDno data₹120.89m0.0022% 889.2k
P.V. Rajsekhar
Deputy General Manager of Finance & Accountsno datano datano data
A. Sanjeev
Executive Director0.75yrno datano data

11.6yrs

Average Tenure

57yo

Average Age

Experienced Management: 512573's management team is seasoned and experienced (11.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alluri Kumar
Chairman & MD18.17yrs₹167.83m12.13% 4.9b
C. Rao
Joint MDno data₹120.89m0.0022% 889.2k
A. Sanjeev
Executive Director0.75yrno datano data
Bunluesak Sorajjakit
Non Executive Director10.17yrs₹135.00kno data
B. Kumar
Non Executive Independent Director17.5yrs₹370.00kno data
A. Achar
Non Executive Independent Directorno data₹370.00k0.0022% 889.2k
N. Prasad
Non Executive Non-Independent Director26.92yrs₹175.00k0.17% 68.1m
Mulakalas Surya Rao
Non Executive Independent Director14.92yrs₹260.00k0.00032% 129.3k
K. Rao
Non Executive Independent Director21.5yrs₹300.00kno data
Wai Yat Lee
Non Executive Director7.67yrs₹135.00kno data

12.5yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 512573's board of directors are seasoned and experienced ( 12.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Avanti Feeds Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avanti Feeds Limited
  • Ticker: 512573
  • Exchange: BSE
  • Founded: 1993
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹40.417b
  • Shares outstanding: 136.25m
  • Website: https://www.avantifeeds.com

Location

  • Avanti Feeds Limited
  • G-2, Concorde Apartments
  • 6-3-658, Somajiguda
  • Hyderabad
  • Andhra Pradesh
  • 500082
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
512573BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2001
AVANTIFEEDNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2001

Biography

Avanti Feeds Limited manufactures, processes, exports, and supplies shrimp feeds in India, the United States, and internationally. The company provides shrimp feeds for use in aqua culture to grow shrimps; and technical support services for the farmers. It also offers prawn, scampi, and fish feeds. In addition, the company engages in the generation and sale of electricity from four wind mills with a capacity of 3.2 MW in Chitradurga, Karnataka. It markets its products through a dealer network. The company was founded in 1993 and is based in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 12:39
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.