If an investor had invested Rs 10,000 in the stock 10 years ago and stayed put, the investment would have swelled to nearly Rs 5 lakh.
However, the returns have waned in the last few years. The stock fell 55% in the last 5 years and rose by a marginal 18% in the last three years.
Avanti Feeds, a BSE500 constituent with a market cap of just over Rs 5,000 crore, is one of India’s largest seafood companies. It operates with a coherent supply chain and a farm-to-fork model using a vertically integrated infrastructure of aquaculture farms, feed mills, hatcheries and processing plants.
The company has an EPS of 21.61 on a trailing twelve-month (TTM) basis and the stock is currently trading at a PB of 3. According to the latest shareholding pattern available with the exchanges, public investors own a majority of the stake at 56.72%, while the rest of 43.28% lies with promoters.
Among the public shareholders, mutual funds have about 8.4% stake, and foreign portfolio investors own 9%.
In the half year of FY24, the total income decreased to Rs 2,898 crore from Rs 2,930 crore in the same period of previous fiscal. The PBT in the first half increased to Rs 270 crore, mainly due to decrease in the raw material costs and increase in other income.Technical outlook – What should traders do?
Analysts said after years of consolidation, the current levels are ripe for investors to cash in and initiate fresh buys.
“If we see the long-term charts, the stock has been under consolidation for the last 6 years. On the other hand, PB is also near 2 and the PE ratio is below 17 . The stock is in pennant formation in monthly charts. The current levels are good to buy for targets of Rs 640 and Rs 720,” said Vaibhav Kaushik Research Analyst GCL Broking.
(With data inputs from Ritesh Presswala)
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