ValuePickr Forum

Avanti Feeds

Mf holdings increased by 2.5lakhs in Nov 2019.

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One learning, don’t invest , influenced by MF increase/decrease

They can absorb 100 crs loss at a time ? You cannot

Invest, in case,you think Business is good and management is excellent

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India exported 68,000 metric tons of shrimp in November, up a massive 41% compared with November of last year.

Exports were up 4% compared with October, latest trade data from India’s Ministry of Commerce and Industry shows.

For the year to date, exports now stand at 605,000t, up 7% compared with the first eleven months of 2018.

Source: https://www.undercurrentnews.com/2020/01/03/trade-insights-6/?utm_source=Undercurrent+News+Alerts&utm_campaign=d4c7e89b96-Europe_briefing_Jan_03_2020&utm_medium=email&utm_term=0_feb55e2e23-d4c7e89b96-92632525

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Nov 2019 US shrimp imports from India grew by 25%

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The market ‘senses’ these things before results :slight_smile: Just look at the FY18 results and they say the boom has come back even stronger this time and is here to stay as opposed to the fizzling out in FY19.

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Co has reclaimed 10,000 Cr Market Cap today!!
It will be interesting study to go through the thread and see how sentiments and opinions change with price

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Marine exports out of India continue to grow yoy. As per Dec 2019 trade data, marine exports grew by 7-8% in $/₹ terms compared to Dec 2018.

https://pib.gov.in/newsite/PrintRelease.aspx?relid=197443

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Congratulations on your conviction & patience .Hope 2020 turns to be a stellar year for quality small & midcap stocks.

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Yes very interesting case study for all investors… Its a rollercoaster ride in stock and in forum too… important is to do nothing and have conviction… congratulations on ur conviction…

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In business terms this company is not far behind than Avanti. Sales v/s Profits. But ofCourse not listed.
http://www.deviseafoods.com/

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There is big difference as far as I know. Avanti is mainly a shrimp feed manufacturer(only around 20% comes from Shrimp export) while Devi Foods is mainly a shrimp exporter.

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Is the business growth of Avanti, this time, sustainable over medium/ long term - or like last time- only a flash in the pan - resulting in major stock price crash and late investors loosing huge money?

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Risk remains somewhat but much more stable now, completely export dependent on US and China, any tweet from Trump on “trade tariff” and “shrimp” or Chinese policy change/pigs getting healthier and poof! Hindsight makes everything seem beautiful. :wink:

But the fact remains overall shrimp demand has come back with India in a long-term favorable position.
Avanti has a reliable business quality to bet on.

Disc: Invested since July 2017, averaged up till close to peak, booked losses exactly a year after in 2018. Re-entered 3 months ago and overall profitable exit made today.

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Hi Ayush,

Would love to hear your thoughts, considering that you had divested partially below the present pre-split price couple of years back?


Visited a village in south coastal Andhra Pradesh and captured the above pic. Picture says it all!

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Although it is a personal choice, it was probably premature to sell. Avanti price fell last year because the shrinking in shrimp culture was seen as structural while it turned out to be temporary. Also due to several factors such as trade war, Indian shrimp is now dominating the US market. Government support also intensified. Cheap low-margin Chinese market has opened up as a market (this benefits Avanti, as shrimp culture will expand and sustain and Avanti’s fortunes depend on shrimp culture). Avanti has still not played its ace card - which is price rise. It may be around the corner.

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If you go back on this thread, you will notice the forum had noticed the green shoots before this surge. Most of the comments in this thread during the lows were only waiting on more data on fundamentals. The only negative news was some posts about raids. Etc. That i think was to keep people informed. Overall, i find this thread good at predicting good/bad about avanti. The slide was preceded by comment from phreak with data from phreakonomics. And the current surge was precede by post showing monthly rise in exports.

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Avanti Feeds is increasing feed prices to the tune of Rs.4500~5000/mt from today. They sent a circular to every feed dealer

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This would be great if it actually happens. However, it could also be due to spike in soya prices and gst on fish meal (i’m not sure about quantum and impact) and hence the price hike to maintain/marginal increase in margins. Real benefit might happen in coming times (after few qtrs) when input prices soften while the industry doesn’t reduce the price increase.

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