Scripscan:Avanti feeds ltd
Avg buy price:222
Business:Avanti Feeds Limited manufactures and markets shrimp feeds to the farmers of aqua culture. The company operates in three segments: Shrimp Feed, Shrimp Exports, and Wind Mills. It produces prawn, scampi, and fish feeds. The company is also involved in processing and exporting shrimps to the United States, Europe, Japan, Australia, and the Middle East. In addition, the company, through its outlets, offers shrimp ready to eat and ready to cook products under the Prawn King brand name. Further, it engages in the generation and sale of electricity.The company operates 4 windmills with a capacity of 3.2 MW at Chitradurga, Karnataka.
Previous call on it:-As you all know avanti was also recommended at 100 levels few quarters back.
Story:Avanti feeds as can be seen from the above was recommended a number of times and since then the scrip has more than doubled.The present recommendation is for members who fancy short term stuff.I am in no mood to pen a massive note as the call is purely news based.Check the couple of stuff which will dictate its stock price trend in the days to come.
1)The company is set to report absolute blockbuster set of numbers where its expected to double its profits from 11crs to 20crs.Sales too would see a proportionate jump.The result will definitely help it to boost its stock price by 15-20% within the next 2-3 months.
2)My strong sources vouch for a lot of HNI activity in the days to come.One of the most renowned small cap preacher(cant name him as its against rules and calls for violation but to hint with a shah surname)is set to swallow a chunk of the counter.Exciting times await the counter which has got a great short to medium term future as far its stock price trend is concerned in the bourses.
Results:For fy12-13 the company reported revenues of around 650crs with a profit of 30crs.EPS reported was 33rs.For the 1st quarter alone the company has clocked revenues worth 270crs accompanied by a PAT of 14crs.EPS for the quarter alone has been 15.6rs.
Dividend:The company has also paid a dividend of 6.5rs.With much higher profits and a healthy dividend cover,expect to have a dividend of 11-12rs in the present fiscal.
Conclusion:Thai Union Frozen Products (TUF), parent of a leading Thailand-based group of companies engaged in shrimp business, owns 25 per cent shares of Avanti Feeds Ltd.Thai Union Group, a listed entity, is the largest seafood exporter outside Japan with consolidated sales of over $2 billion. It has operations in Thailand, the US, Vietnam, Indonesia and China. The major products include canned tuna, frozen shrimps, cephalopod, shrimp and fish feed.TUF is supporting AFL bigtime in expanding AFL’s processing and export market as TUF has a large wholesale and retail network in the US.Overall,A lot of activity is expected to happen in the counter in the short term.Buy it within the given range to make cool returns.
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