Avanti Feeds


(sarmams) #1095

To my knowledge, initial post IPO hysteria coupled with lower market cap of the company is enticing investors to invest in Apex in the hope of making a multi bagger out of this stock. May be, with the kind of run up in Avanti stock price over the last few quarters, they are expecting a similar run in Apex. I had a quick look at Apex financials and found them to be decent (but not extra ordinary for a screaming buy at any price). Due to a cursory glance,I might have got the thesis completely wrong on Apex and happy to hear out others views on Apex (always good to know about competitor companies!!).

Disc: invested in Avanti, not in Apex.


(Gaurav Agarwal) #1097
  1. Indian carrying 1.5 million ton of Soya bean from last year.

  2. Soya bean sowing this year is poor compared to last year.


(Deepak Venkatesh) #1098

Hi

Came across this on Bloombergquint.

I honestly didnt expect this kind of step function! The rush for pink gold :wink:

Regards
Deepak


(bbbhutra) #1099

Hi Ayush,

Since you track the company so closely, are you still bullish on Avanti Feeds for the next 2-3 years ?


(hemtan100) #1100

I understand that Avanti exports directly to retailers like Walmart. any idea under what brand name can i find Avanti products on Walmart shelves?


#1101

Apex Frozen Foods had put a spanner in the works of Avanti last few weeks due to its IPO and subsequent listing and run-up. The very first day that Apex seems to have lost steam, Avanti gained big. A close above the same trendline that Avanti broke with gap-up post its great numbers is also an added plus. Fresh 52 wk high as well.


(hbpank) #1102

Why Avanti has gained this much ? Is there any news ?


(Vijay) #1103

Anti dumping duty is cut for Indian exporters.


(NRS) #1104

Today’s interview on a news channel


(nil_71) #1105

Indian shrimp raw material prices are on the rise in August and into September as the second main harvest of the year has been met with high demand, sources told Undercurrent News.

On top of this, concerns remain among some that the EU could look to ban Indian shrimp, reportedly due to increasing incidences of traces of antibiotics being found.

Prices hit a low in July but quickly rose in the first part of August; this rise continued into September, though not at such a steep rate.

At the start of September prices had reached INR 450 for 30 count per kilogram, head-on, shell-on raw material; INR 380 for 50 count; INR 325 for 70 count; and INR 270 for 90 count.

For the full update on prices, see Undercurrent’s prices portal.

“Landings remain quite weak in India in general,” one trader told Undercurrent earlier in September. “Quantities of smaller sizes are more prevalent, as the second crop has just begun in several areas.”

This crop was expected to be in full swing by around mid-September, he noted, though this was not expected to stop prices from continuing to rise.

“We heard prices are likely to remain on an upward trend; demand remains quite strong and competition among packers for raw material is still fierce,” he said. Some packers still have many loads to be shipped in the next month or so.

In terms of Asian sales, the trader said demand from China was fairly strong as Indian size profiles matched those buyers’ needs for small and medium sizes. Vietnamese demand was down significantly in late August and September, as its own harvests picked up, he added.

Rahul Kulkarni, director of Westcoast Group, told Undercurrent he certainly did not consider the second crop anything like a “failure”, adding it was early to judge the crop’s success yet.

He also said price movements in September, and later into the fall, would be linked as much to rising demand for holiday periods in the EU and US as it would the supply side.

In Tamil Nadu, meanwhile, the upward trend in raw material prices halted early in September, and actually dipped, due to price differences between this province and Andhra Pradesh, where harvesting began slightly earlier, said Durai Balasubramanian, secretary of the Pattukottai Shrimp Farmers Association.

He predicted prices would only begin to rise again after September was over, citing good raw material availability in several states.

Tushar Marde – a farming source based in Maharashtra, India – also confirmed prices had risen from July’s lows, but added that prices to the farmer in his region remained some INR 30-40 below those in Andhra Pradesh.

He cited INR 400 for 30 count; INR 310 for 50 count; INR 240 for 80 count; and INR 200 for 100 count. Profit margins remained far too tight for comfort, he said.

At Vietfish, at the end of August, shrimp producers told Undercurrent they expect Chinese buyers to look to India this fall; Chinese demand is likely to keep prices in all shrimp producing nations relatively stable, they felt.

‘Staring at a ban’

The past two months there has been some talk in media, and from Undercurrent sources, of the potential of the EU banning Indian shrimp imports, apparently over increasing incidences of traces of antibiotics being found.

“The EU commission is always considering a ban or restriction on something; I wish to hell they would simply ban or restrict themselves,” said Derek Golding, chairman and founder of UK importer Seahawk Marine Foods.

“There are always rumors about such things. For anybody to suggest that Indian shrimp exporters as a whole would not be concerned about the prospect of a ban is utterly moronic.”

“There would also be serious governmental concerns, given the massive advances made in Indian aquaculture production standards and controls, and the huge dollar revenues generated for the Indian treasury,” he added.

There are some Indian exporters who now refuse to deal with EU importers because of the unfair way they feel which third country imports are treated, he added.

Kulkarni, on Sept. 8, confirmed the Indian industry and government were “in the thick of meetings and discussions” around the topic of a potential ban.

“We are really worried over the eventuality of the EU banning Indian seafood imports. It’s more geo-political than actual quality issues, but the sector is suffering and now staring at the ban,” he said.

EU teams are scheduled to visit and audit several plants in the coming months, and the hope is this should allay fears and allow trade to normalize, Kulkarni said.

“The government and the industry has taken this seriously, and a slew of measures have been planned as well as some implemented.”

Balasubramanian, meanwhile, said he felt any ban would be undeserved, as “already lots of efforts have been taken to address the antibiotics issue”.

On Sept. 18 the Global Aquaculture Alliance (GAA) also warned India was in trouble with the EU for “continued flouting of its rules regarding the presence of antibiotic residues in export shipments”.

Tests undertaken by official EU control laboratories apparently showed the level of compliance of aquaculture products was unacceptable, particularly in regard to the presence of residues of chloramphenicol, tetracycline, oxytetracycline, chlortetracycline and metabolites of nitrofurans.

The EU has announced an audit of the country’s pre-export control procedures at the end of November, said GAA. “If the results are found to be unsatisfactory, a ban on imports is a very real possibility in the New Year.”

Another option is for the EU to ramp up inspections to 100% of shipments, which would place a heavy financial burden on importers, it added. Currently 50% of shipments are inspected, and this has already upped the burden on said importers.

Source Undercurrent News


(Saji John) #1111

http://www.bseindia.com/xml-data/corpfiling/AttachLive/18653c4a-c9e8-45f0-811c-5aa908571c62.pdf


(nil_71) #1113

It is good to see, Thai Union is continuously expanding capacities

Thai Union snaps up Pakfood shares

Thai Union Group will invest TBH 780 million ($24.5m) in Thai seafood processing company Pakfood PPC, according to a company announcement.

Thai Union’s board resolutions have approved the acquisition of 7.36m shares in Pakfood – a seafood processor and exporter based in the central Thailand province of Samutsakorn – or 22.3% of the firm’s overall shares.

The valuation of TBH 106 per share was based on 8.8x Pakfood’s historical earnings per share, derived from the average annual net income of Pakfood for 2014-2016 being divided by the current outstanding number of fully paid-up shares of 33m.

The deal for the shares takes TU’s shareholding in the company to 99.7%.


#1114

(nil_71) #1115

Ecuador ‘ready to step in’ if Indian shrimp given EU ban

By Matilde Mereghetti Sep. 29, 2017 09:17 BST
GUAYAQUIL, Ecuador – Ecuador is ready to step in and increase its shrimp sales to the EU, should India be slapped with an import ban later this year, the head of the former’s aquaculture chamber told Undercurrent News


(nitin.verma) #1116

The above article is here. https://www.undercurrentnews.com/2017/09/29/ecuador-ready-to-step-in-if-indian-shrimp-given-eu-ban/?utm_source=Undercurrent+News+Alerts&utm_campaign=b2af9d22b0-Europe_briefing_Sep_29_2017&utm_medium=email&utm_term=0_feb55e2e23-b2af9d22b0-92445977
Though I believe the tirade by EU seems to be gaining somewhat loud these days and since Europe constitutes 17% of Indian shrimp exports, it would be worthwhile to follow the developments. The EU inspection seems to be in November as per the article whereas previously it stated theymay come to a decision in September. Need to keep a tab
Disclosure: invested, have tapered down my position by a small amount to balance portfolio


(sarmams) #1117

Definitely an event to watch out. Few pointers to consider:

a) article mentions that EU may finally ban few companies. IMHO, this appears more realistic rather than a complete ban on Indian shrimps. To me, use of anti biotics would be done by ill informed small farmers, rather than established big players.

b) during Avanti AGM, Mr Indra Kumar duly acknowledged this issue. He mentioned that Avanti has been extensively educating shrimp farmers about hazards of using anti biotics and have been promoting clean practices among farming community. If i remember correctly, he did make a mention that Avanti does a voluntary check on shrimps they procure from farmers to check for any traces of anti biotics before they are exported? Request other boarders who attended AGM, to confirm this point.

Discl: invested and hence my views are biased. Kindly, do your own due diligence.


#1118

(Vivek Maheshwari) #1119

The price Increase may be due to issue of Godrej Agrovet IPO which is at a PE much higher than Avanti


(rvetri) #1120

The price increase reason could be that Avanti was chosen as the top
multibagger stock in the Motilal Oswal QGLP contest last sunday…And it
took 2 positions in the top 3 positions.


(James Sebastian) #1121

What else came up other than avanti in top positions ?