I can see loss of 6 crores against 90 lakh profit of last year same quarter… What I am missing here ?
This is for waterbase.
I think, Any advantage of improved demand will be first sensed by market leader and later drops will percolate to sector no. 2 & sector no. 3 slowly. Thats why other are not showing good results. When cake will come to the market, it is sure that its pie will be distributed to all the market players depending upon the size. I have added Avanti , when Eucador issues news comes in market. looking to buy sector no.2 when right moments comes.
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Where is the next leg of growth going to come from?
Avanti is doing a capex of upto 150 cr for Pet products. Even a bullish 2x asset turn will give 300 cr revenue (~5% of current topline). Frozen shrimp export (around 20% of total sales) expected to grow by ~17%. While the main business of shrimp feed is expected to grow in single digits.
This report says the shrimp feed market in India could grow by ~16% without mentioning any specifics. The same old story of disposable income increase, low calorie high protein source, etc has been around forever.
Why are we going gaga over this company? What changed?
Even if the smaller companies are troubled, where will the intrinsic growth in Avanti come from?
Invested. Enjoyed the recent bullish rally. Re-evaluating my position.
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This EHP Parasite is not a specific problem happening right now… this is a generic article talking about this common problem and the solution they apparently found for this
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One challenge after another!
“The US Department of Commerce (DOC), as part of its final determination in the anti-dumping duty investigations on frozen water shrimp from India, has imposed a higher countervailing duty (CVD) compared to Ecuador, Indonesia and Vietnam. This could hit Indian seafood exports to the US and provide an edge to the competing countries.”
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This should have impacted Avanti’s prices but the impact has been pretty muted and the stock is consolidating near 600.
Are there any fine prints in play ?
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Sharat industries posted good results today. let see how Avanti shows this quarter result. It will be interesting to hear latest concall of Avanti and understand the current dynamics of industry.
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Hi I have a basic question. What is the difference between Shrimp Processing Segment and Shrimp Feed?
Does shrimp feed means the food of shrimps?
And Processed shrimp means the frozen shrimp?
Yes you are right for both the points
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So Avanti earlier used to make only Shrimp foods. Now slowly they are foreying into shrimp processing which is a higher margin product. Is that correct?
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There has been a rise in global shrimp prices from Q1 this year (one can go to Google and search global Shrimp prices and open the trading view link to see it, I’m attaching a snapshot of the same)
As it can be seen from Q1 end till October the price rise is more than 10% well that’s huge. This price rise is not reflected in Q2 result of Apex frozen food which is into shrimp processing (Frozen Shrimp and Ready To eat shrimp). So I’m assuming this price rise might be seen in Q3 result (to be confirmed from Apex Frozen Foods mgmt in their concall)
But since most of Avanti revenue comes from Shrimp feeds my acessment says they won’t get much benefit from shrimp price rise…is that a correct assumption?
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Another qtr of good performance when the whole industry/peers continue to bleed and loose money:
Its actually amazing what this company has delivered during such tough times of the industry over last 5/7 years.
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Shrimp Feed
- Shrimp Feed sales in Q2FY25 was 1,34,897 MT as compared to 1,27,864 MT in Q2FY24 an increase of 6% YoY.
- The ₹2,616 crore allocation for the Fisheries sector in the Union Budget 2024 is set to boost R&D in aquaculture, focusing on sustainable and efficient shrimp feed development. These initiatives are poised to benefit companies like Avanti Feeds Ltd. strengthening their growth prospects.
Shrimp Processing & Export
- Shrimp exports recorded a 16% YoY growth in Q2FY25, reaching 3,423 MT compared to 2,950 MT in Q2FY24.
- Processed shrimp sales volumes also saw significant growth, with the EU’s market share increasing sharply to 19% in Q2FY25, up from just 4% in Q2FY24, reflecting strong demand from the region.
Ebidta margins in shrimp feed is on rise but margins in processed shrimp still declines, despite increase in shrimp cost reported all over in the news.
One thing good to see is that now company is diversifying its export geography. It will make it less dependent on US.
Overall I will continue to hold Avanti feeds. My buying price is 398 and holding it for almost 1 year.
Questions:
What is the maximum Ebita margin of shrimp feed that it can fetch in current cycle? In fy18 it has recorded 24 % ebit margin. All views are invited.
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Do you know are they venturing into pet care products also if yes how much is TAM
3.6 $ bln in 2024 and expected to reach 7 $ bln by 2029 as per reports
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