How Avanti Feeds Fed Investors With 28,500% Returns

Published by Trinkerr Academy on

If you had invested ₹1 lakh in Avanti Feeds 12 years ago, then you could have had ₹2.95 crores today! This shrimp feeds multibagger grew by 28,500%. Here’s a deeper dive into the company.

🦐 Stock: Avanti Feeds Ltd.


🌊 About The Company

Avanti Feeds Ltd. (AFL) has made its mark in the field of aquaculture by engaging in manufacturing high-quality feed for shrimp, operating the Vannamei hatchery and processing and exporting shrimp. It also has a solid technical and marketing tie-up with the Thai Union Group of Thailand to strengthen its capabilities in the field of aquaculture.

The company started its commercial operations in 1993 and now stands as the leading shrimp feed manufacturer. They operate 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. This is achieved through constant upgradation of aquaculture technology, delivering the very best of technical services to their farmers and adhering to quality standards for global shrimp consumers.

🌱 Growth Potential

▪️ Delving into the fundamentals of the company, the company had posted total revenue of around ₹5,100 crores for the year ending March 2022, which, when compared to a mere ₹650 cr in March 2016, gives the sign that the company has been doing exceptionally well.

▪️ The company’s balance sheet remains almost debt-free, while the company has been able to generate more cash flows from its operating activities over the years.

▪️ The EV/EBITDA value has been increasing over the years, indicating that the firm is getting more and more expensive going forward.

▪️ The P/E ratio has reduced from a high of 39 in Jan 2022 to 30 currently.

▪️ The company has given astronomical returns to its investors to date—on 30 July 2010, the price of each share of Avanti Feeds was trading at ₹1.54, while on 29 July 2022, the share prices closed at ₹440.55!


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