Why is Avanti Feeds Ltd. ?
1
High Management Efficiency with a high ROE of 16.10%
2
Company has a low Debt to Equity ratio (avg) at 0 times
3
Poor long term growth as Net Sales has grown by an annual rate of 8.08% and Operating profit at 9.59% over the last 5 years
4
The company has declared Positive results for the last 6 consecutive quarters
- OPERATING CF(Y) Highest at Rs 584.36 Cr
- ROCE(HY) Highest at 28.54%
- NET SALES(Q) Highest at Rs 1,609.69 cr
5
With ROE of 20.5, it has a Attractive valuation with a 3.7 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 36.77%, its profits have risen by 47.9% ; the PEG ratio of the company is 0.4
6
Majority shareholders : Promoters
7
Market Beating performance in long term as well as near term
- Along with generating 36.77% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you buy?
- Overall Portfolio exposure to Avanti Feeds should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Avanti Feeds for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Avanti Feeds
36.62%
0.77
47.77%
Sensex
-4.3%
0.43
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
8.18%
EBIT Growth (5y)
8.75%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.91
Sales to Capital Employed (avg)
2.34
Tax Ratio
25.74%
Dividend Payout Ratio
23.19%
Pledged Shares
0
Institutional Holding
14.86%
ROCE (avg)
73.75%
ROE (avg)
16.10%
Valuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
25
Price to Book Value
5.50
EV to EBIT
19.77
EV to EBITDA
18.15
EV to Capital Employed
52.60
EV to Sales
2.31
PEG Ratio
0.83
Dividend Yield
0.74%
ROCE (Latest)
260.58%
ROE (Latest)
20.54%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
7What is working for the Company
PAT(Latest six months)
At Rs 302.51 cr has Grown at 21.48%
ROCE(HY)
Highest at 28.85%
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 27.12 times
Loading Valuation Snapshot...
Here's what is working for Avanti Feeds
Profit After Tax (PAT) - Latest six months
At Rs 302.51 cr has Grown at 21.48%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Avanti Feeds
Debtors Turnover Ratio- Half Yearly
Lowest at 27.12 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 63.05 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income