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Avanti Feeds Limited Fundamental Analysis: Group A
Avanti Feeds Limited Fundamental Analysis: Group A
Avanti Feeds Limited Fundamental Analysis: Group A
Fundamental
Analysis
Group A
Overview
41% of seafood exports • Shrimp continues to be the back bone of Indian seafood exports and
accounted for 41% in volume terms of total seafood exports from the
country as against 38% in the previous year
30.41% Volume growth • The total shrimp exports were around 5,66,000 MT in the year 2017-18
as compared to 4,34,000 MT in 2016-17 in volume terms
• In value terms, the shrimp exports were 30,868 Crore as against `24,711
24.91% Value growth
Crore in 2016-17
OPPORTUNITIES
THREATS
Healthy Industry tailwinds- estimated
CAGR of 20%
• Dependent on climatic conditions- threat of
Diversifying revenue streams
cyclones/tycoons
Increased global consumption of Indian
• Possibility of shrimps getting affected by
seafood in US and SE Asia
diseases.
Government’s push on developing
• Volatile International prices of shrimps;
aquaculture in India
fluctuating foreign exchange rates; anti-
Large coastline offers huge untapped
dumping duty by US.
potential for shrimp farming
SWOT ANALYSIS
STRENGTHS
High Market share, sustainability and
superior execution
High capacity utilization (close to 100%) WEAKNESSES
Partnership with Thai Union, access to The shrimp culture faces infrastructure-related
technical know-how problems like in-adequate water resources,
Lowest FCR- 1.2 compared to industry power supply, cold storage, etc.
average 1.5
Brand built with high trust with the farmers-
superior cash conversion cycle
OPPORTUNITIES
THREATS
Healthy Industry tailwinds- estimated CAGR
of 20%
• Dependent on climatic conditions- threat of
Diversifying revenue streams
cyclones/tycoons
Increased global consumption of Indian
• Possibility of shrimps getting affected by
seafood in US and SE Asia
diseases.
Government’s push on developing
• Volatile International prices of shrimps;
aquaculture in India
fluctuating foreign exchange rates; anti-
Large coastline offers huge untapped
dumping duty by US.
potential for shrimp farming
Ratio Analysis
Profitability Ratios 2018 2017 2016 2015 2014
PBT/Sales 0.22 0.13 0.12 0.10 0.09
Profit Margin (NP/Sales) 0.15 0.09 0.08 0.07 0.06
RoE 0.55 0.41 0.49 0.54 0.80
RoA 0.39 0.27 0.29 0.27 0.22
EPS 91.37 43.23 34.19 128.35 76.79
Solvency Ratios
PAT+Dep/Total liabilities 1.30 0.72 0.72 0.58 0.34
Debt-Equity 0.35 0.50 0.61 0.83 1.26
Liquidity ratios
Current assests/current liabilities 3.19 2.24 1.69 1.77 1.38
Quick ratio 1.92 1.17 0.66 0.65 0.39
Turnover ratios
Asset Turnover 2.64 3.04 3.69 4.05 3.51
Working Capital Turnover 5.60 9.11 13.16 15.36 17.72
Inventory Turnover 5.90 6.96 6.91 6.57 5.96
Competitive Ratios
Market Price as on 1st April (Year End) 1117 369 200 170 50
PE Ratio 12.23 8.53 5.86 1.32 0.64
Dividend Yield Ratio 0.04 0.10 0.16 0.15 0.28
Dividend Payout Ratio 0.54 0.89 0.93 0.19 0.18
EPS Growth (%) 111.36 26.44 -73.36 67.14 131.02
PEG Ratio 0.11 0.32 N/A 0.02 0.00
Valuation
Price Multiples
Valuation using DCF Analysis
1000.00 892.00 P/E
797.28
800.00 687.67 Industry- 15.58
573.06 Avanti Feeds- 14.83
600.00 477.55
397.96 Consensus – 20
400.00 276.36 331.63
200.00
Based on 20x –
0.00 Estimated share price (2026) =
2018 2019 2020 2021 2022 2023 2024 2025
2119
FCFE Estimated share price (2020) =
877
V0= FCFE0 + FCFE1/1+re+ FCFE2/(1+re)2+ … + FCFE7/(1+re)7+ FCFE8/(re-g)
EV/EBITDA= 2.96
CAGR of 20% for next 5 years Compared to Waterbase’s 26.14
Tapering growth for the next 3 years 7521.37 crores and CP Aquaculture’s 6.9
To reach a stable growth rate by 2026 Compared to actual M-
Terminal Value= 5955.14 crores cap of 6590 crores
Krishan Mittal (0413/55)
Pranay Sumbly (0428/55)
THANKS!!! Rajat Garg (0432/55)
Raman Bhatia(0354/55)
Shravan Mundra (0445/55)
Any questions?