scorecardresearchThis stock has lost over half its value in 5 years but analysts are still bullish

This stock has lost over half its value in 5 years but analysts are still bullish

Updated: 13 Apr 2022, 03:32 PM IST
TL;DR.

An investment of 1 lakh in the stock in November 2017 would have been reduced to 47,000 currently.

An investment of  <span class='webrupee'>₹</span>1 lakh in the stock in November 2017 would have been reduced to  <span class='webrupee'>₹</span>47,000 currently.

An investment of 1 lakh in the stock in November 2017 would have been reduced to 47,000 currently.

Shares of Avanti Feeds have lost half of their investor wealth in the last 5 years. The stock has shed as much as 52.5 percent from its all-time high of 980, hit on Nov 17, 2017, to currently trade around 465.

An investment of 1 lakh in the stock in November 2017 would have been reduced to 47,000 currently.

However, despite this huge correction, brokerages remain bullish on the stock. 3 analysts polled by MintGenie have a ‘strong buy’ call on the stock. Meanwhile, ICICI Securities also have a 'buy' call on the stock with a target price of 600.

In the last 1 year, the stock has risen just around 3 percent. Just in April to date, the stock has surged over 21 percent with an 8 percent rise today.

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Avanti Feeds, incorporated in the year 1993, is a Mid Cap company operating in the Aquaculture sector. It is a manufacturer of prawn and fish feeds, and shrimp processor and exporter. The Company's principal products/services are shrimp feed and processed shrimp.

In the December quarter, the net profit of Avanti Feeds declined 46.41 percent to 40.19 crore as against 74.99 crore in the year-ago quarter. Sales, meanwhile, rose 16.77 percent to 1,068.92 crore in Q3FY22 versus 915.43 crore in Q3FY21.

According to experts Avanti feeda has established its credentials among farmers across India by virtue of its products’ quality and consistency. Such market dominance provides high sustainability as it’s a brand built on trust and a farmer rarely shifts his feed, as it risks his crop, a report by Edelweiss said.

ICICI Securities models Avanti to report revenue and PAT CAGRs of 16.8 percent and 10.4 percent over FY21-FY24 and also expect its RoE to be over 20 percent over the same timeframe. It maintains a buy rating with a DCF-based target price of 600 to be achieved in one year. Higher than expected input inflation, and lower than expected offtake of products are key risks, added the brokerage.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

 

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First Published: 13 Apr 2022, 03:32 PM IST