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
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
4
With ROE of 20.5, it has a Fair valuation with a 4.6 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 40.60%, its profits have risen by 47.9% ; the PEG ratio of the company is 0.5
5
Increasing Participation by Institutional Investors
- Institutional investors have increased their stake by 0.97% over the previous quarter and collectively hold 14.86% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
6
Consistent Returns over the last 3 years
- Along with generating 40.60% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
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
40.6%
0.80
50.45%
Sensex
7.07%
0.61
11.53%
Quality key factors
Factor
Value
Sales Growth (5y)
8.08%
EBIT Growth (5y)
9.59%
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
25.10%
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
23
Industry P/E
24
Price to Book Value
4.63
EV to EBIT
16.37
EV to EBITDA
15.02
EV to Capital Employed
42.67
EV to Sales
1.88
PEG Ratio
0.47
Dividend Yield
0.88%
ROCE (Latest)
260.64%
ROE (Latest)
20.55%
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
Mildly Bearish
Dow Theory
Bullish
Bullish
OBV
Bullish
Bullish
Technical Movement
14What is working for the Company
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
PBT LESS OI(Q)
At Rs 177.63 cr has Grown at 47.22%
PAT(Q)
At Rs 153.29 cr has Grown at 34.9%
-4What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.71 times
DPR(Y)
Lowest at 23.19%
Loading Valuation Snapshot...
Here's what is working for Avanti Feeds
Net Sales - Quarterly
Highest at Rs 1,609.69 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 177.63 cr has Grown at 47.22%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Cash Flow - Annually
Highest at Rs 584.36 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 153.29 cr has Grown at 34.9%
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 2.71 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Dividend Payout Ratio (DPR) - Annually
Lowest at 23.19%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)






