Avanti Feeds


(Donald Francis) #969

Let’s see what can be planned this time. Will start reaching out to folks who helped establish contact points before. Thanks


(Saji John) #970

Interesting chart reading by EMIL GES‏ @GES_Forex


(Deepak Venkatesh) #971

Hello

In the newspapers yesterday.

Avanti Feeds, manufacturer and exporter of prawn and fish feeds, and processor of shrimps, has surged over 5,600 per cent between July 27, 2012 and July 27, 2017. An investment of Rs 100 in Avanti Fees five years back would have become Rs 5,700 today. The scrip advanced from Rs 28 to Rs 1,601 in the period.

“Avanti Feeds aims to be a $1 billion turnover company in next 3-4 years. We continue to be invested,” said investor Ayush Mittal.

Read more at:

Rgds
Deepak


(nil_71) #972

Too much optimism getting built in Avanti now. Retail investors need to be careful


(narender) #973

yes, especially for a company with key risk (ems spread, that could kill entire industry) and next phase of growth coming from prawns processing. A business where Avanti is yet to demonstrate its stupendous growth and execution abilities.

Also to add-on: One of the key reasons, Avanti has grown phenomenally is low working cap requirement in feed business (cash discounts, very low receivables). This reduced its fund requirement to just the fixed assets. This is not the case with Prawns processing business. So, this business would require both fixed and working cap investments.


(django) #974

Dear All,

After going through the numbers, I found that Avanti’s processed shrimp business has lower margin than the feed business.
I though it should be the other way round - processed shrimp being the near-finished-product.

Can someone enlighten me about this?

Sincerely,
Django


(Value Seeker) #975

My humble opinion - this is a classic bull market top indicator. In hindsight, any stock that is now a multibagger was in the past available at throwaway valuations. There is a storm coming - no one knows what type or when though. :slight_smile:


(Empower the Looser) #976

I am thinking of replacing Watrebase (~ 12 % profit in 2 years) with Avanti. Any thoughts ?


(subu76) #978

Given that soya prices edged lower and top line growth expectations by management (due to the same factors as last quarter) I’d assume upcoming results would be bumper.


(Sandeep Patel) #979
  • Yet another good month for shrimp export from India to U.S. - up 75% in June '17.
  • India’s market share continues to rise. ~34% in June '17. ~30% in CY17. Was ~25% in CY16.

Source: https://www.st.nmfs.noaa.gov/apex/f?p=169:2:::NO:::


(nil_71) #980

Indian seafood exports may come under inspection in the European Union (EU), the third-largest market of India, because antibiotics are being frequently found in them.

Speculation among UK importers is rife that the EU is considering a ban on aquaculture products from India though there is nothing to support this.

In 2016-17, the European Union accounted for 18 per cent of $5.78 billion seafood exports from India.

Trade sources said that there have been increasing rejections of Indian shrimps because of antibiotics like Nitrofurans and metabolites, AOZ, and chloramphenicol found in them.

But of late rejections have reduced. The European Commission is also believed to be blacklisting factories whose products have been rejected.

“While the Commission has not taken any official action (the issue does not appear on any EU agenda) the future of Indian aquaculture imports is looking bleak. The directorate-general, health and food safety is seriously worried about the continuing finds of antibiotics in Indian shrimp and dissatisfied with the response so far of the Indian authorities,” an advisor to Seafish, which represents the UK seafood industry, wrote to importers.

The Commission is dissatisfied both with the continued non-compliance and the lack of progress made by the Indian authorities.

“In the light of what we know, it would be no surprise if we see the commission puts up a proposal at the standing committees that Indian aquaculture products be banned completely. The commission is having a summer shutdown at the moment so no meetings will be taking place until September. We will look out for developments,” the advisor said.

chart Last year, the EU had strengthened its inspection norms for aquaculture products sent from India. Earlier, the norm was testing samples from at least 10 per cent of the consignments, which was enhanced to 50 per cent in 2016.

“The EU is a major market for Indian shrimps. At least 19 per cent of the total exports are directed to this market. Aquaculture shrimps constitute about 60 per cent of shrimp exports. So any such move would badly affect exports. This would have negative ramifications for the seafood industry,” said Rajen Padhi, director, exim consultant and a seafood trader.

Earlier this year the US, the largest importer of Indian marine products, had stepped up testing measures for consignments shipped from India, creating panic among exporters

Source Business Standard 6/8/2017


(Sandeep Patel) #981

@ayushmit - Total shrimps export from India (by volume) data. Summary follows -

  • Up ~31% in 1Q CY17 over the same period last year
  • Up ~12% in CY16 over CY15

Note: 2Q CY17 data is not available yet.

Source: http://trademap.org/ (thanks to @bheeshma for this source).


(Gaurav Agarwal) #982

Shrimp prices from a retail market in Philadelphia, just for the information.


(Tolaha) #983

These are “wild caught” shrimps. A different category than the farmed shrimps that Avanti deals with. A quick google search tells me that Indian farmed shrimps ex-vessel comes to around 4 to 6$.


(Donald Francis) #984

Just to keep folks informed, due to conflicting schedules of so many AGMs near Avanti’s (12 Aug), we are constrained to conduct the field work sometime after the AGM - and not before as was usual.

Hopefully, this would give us more relaxed time to do good amount of scuttlebutt again.


(Saji John) #985

Follow up chart of Avanti


(Raj A A) #986

Indian Seafood Exporters looking for alternatives to US,Europe.Indications are there to ban Indian Shrimp by EU

http://epaper.business-standard.com/bsepaper/svww_zoomart.php?Artname=MjAxNzA4MDlhSzAxODEwMTAwMw==&ileft=182&itop=485&zoomRatio=130&AN=MjAxNzA4MDlhSzAxODEwMTAwMw==


(Yogesh Sane) #987

Thanks Gaurav for the picture. Shrimp (and sea food in general ) is considered as exotic food due to their high prices in US ranging from $11 per pound to as high as $21 pound as per your picture. In comparison, beef, chicken and pork costs between $3-$5 per pound at retail level.
High prices should limit consumption of shrimp and make them price sensitive. Since there is a lot of optimism around Avanti, your post beings some balance.


(Raj A A) #988

Indian Seafood Exporters looking for alternatives to US,Europe.Indications are there to ban Indian Shrimp by EU


(Saji John) #989

Equirus gives a TP of 2270 by sept '18 http://app.investmentguruindia.com/Mobile/ResearchArticles/2017/August/Equirus_Securities_Avanti_Feeds_AR17_Analysis_and_1QFY18_Preview_01_08_2017.pdf