Avanti Feeds share price has delivered 31,871% returns in last 10 years. Avanti Feeds stock, which stood at Rs 1.4 on October 30, 2009 closed at Rs 453.15 on October 30, 2019. An investment of Rs 1 lakh in the stock in 2009 would now be over Rs 3.23 crore. Avanti Feeds share price has gained 24% in one month.
The stock has logged 10.68% upside during the last one year and risen 16.09% year-to-date. In comparison, Sensex gained 16.45% during the last one year and rose 11.16% in 2019.
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The phenomenal rise in the stock can be attributed to strong financial performance of the firm.
A significant contribution to the gain in the stock can be attributed to the shrimp exporter firm's second quarter earnings. Avanti Feeds share price closed 10.35% or 42 points higher at Rs 450.60 today after the manufacturer of prawn and fish feeds reported a 155% rise in Q2 net profit to Rs 118.69 crore compared to Rs 46.39 crore net profit reported in the corresponding period of previous fiscal.
Avanti Feeds reported a 41.05% rise in sales to Rs 1,064.30 for September quarter compared to Rs 754.54 crore sales in the corresponding period of previous fiscal.
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For fiscal ended March 2019, the firm logged Rs 3,487.78 crore in sales compared to Rs 91.54 crore for fiscal ended March 2010. It clocked Rs 306.36 crore in net profit for March 2019 fiscal compared to a loss of Rs 11.87 crore for fiscal ended March 2010.
However, the journey of the stock to the current level has not been that smooth. The share price fell 43% from Rs 721 (March 27, 2018) to Rs 408 on March 27 this year as exports of shrimp fell in calendar year (CY) 2018.
Shrimp exports from India fell to over 8 percent on year-on-year (Y-o-Y) basis in CY18. This was mainly due to a weaker second crop that led exports to decline 3 percent YoY in second half of calendar year 2018.
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After the fall, Equirus Securities in a report said India's shrimp exports continue to gain momentum and that could benefit Avanti Feeds and Apex Frozen Foods. The brokerage gave a price target of Rs 520 on Avanti Feeds with an investment horizon of one year.
Hyderabad-based Avanti Feeds is the leading manufacturer of prawn , fish feeds and processor & exporter of shrimp.
By Aseem Thapliyal