Avanti Feeds: An Exceptional Multibagger in Turbulent Times
In the midst of significant declines in the Indian stock market, Avanti Feeds stands out as a robust performer. This penny stock has established itself as a true wealth generator for long-term investors, delivering remarkable multibagger returns. Let’s delve into the impressive journey of Avanti Feeds and explore its share price history.
Historical Performance of Avanti Feeds
Over the past 15 years, Avanti Feeds has experienced a staggering surge in share price, soaring from just ₹1.52 to approximately ₹830 following a price adjustment after the issuance of bonus shares in 2018. This remarkable climb equates to an astounding 54,505% return on investment.
- Investment Growth: A ₹1 lakh investment made 15 years ago would now balloon to around ₹5.46 crore. This figure doesn’t even factor in the bonus shares, issued in a 1:2 ratio on June 20, 2018, further enhancing returns.
Recent Stock Movements
In the latest trading session, Avanti Feeds saw a 2.97% increase, hitting an intraday high of ₹842 on the Bombay Stock Exchange (BSE).
- Five-Year Performance: Over the past five years, the stock has appreciated by more than 161%.
- Recent Gains: In just the last year, it has gained 58.46%, attracting attention from both long-term and short-term investors.
- Monthly and Year-to-Date Trends: In the past month, its stock price has climbed nearly 11%, while it has recorded a YTD increase of 22.44%, rising from ₹670.65.
Financial Snapshot of Avanti Feeds
Avanti Feeds recently reported an impressive 86.5% year-on-year increase in net profit, reaching ₹135.2 crore for the quarter ending December 2024. This surge is attributed to enhanced margins and operational efficiencies.
- Revenue Growth: The company’s revenue experienced a 9% YoY increase, totaling ₹1,365.8 crore, largely driven by robust demand in the shrimp feed and seafood export sectors.
- Feed Segment Performance: In Q3 FY25, consolidated revenue rose by 9% YoY, with feed segment volumes climbing by 14%. Although shrimp export volumes dipped by 4%, higher shrimp prices and favorable foreign exchange rates mitigated the impact.
Operational Efficiency
Avanti Feeds showcased remarkable operational performance, with EBITDA soaring by 65.4% year-on-year to ₹160.4 crore. The company also achieved significant margin expansion, reaching 11.7% for the quarter, driven by cost efficiencies and better realizations.
Industry Presence and Future Prospects
As a leading producer of shrimp feed, Avanti Feeds boasts a manufacturing capacity of 775,000 MT and manages a shrimp processing and export operation of 29,000 MT. The company serves multiple international markets, including Europe, Japan, Korea, China, Russia, Canada, and the Middle East. A strategic partnership with Thailand’s Thai Union Group positions Avanti Feeds well to capitalize on strong global demand.
In summary, Avanti Feeds has proven to be a resilient player in the stock market, offering substantial returns to its investors while maintaining a strong operational foundation. As it continues to navigate the challenges of the industry, its future prospects remain promising.
