Posted by This is a Company involved in Aquaculture. The Company has three main Products
* Shrimp Feed & Fish Feed
* Shrimp Processing & exports
* PRAWN DELIGHTS (PRAWN KING)
Shrimp is a small sea creature which is delicious to eat. Prawns are used synonymously to shrimps because they are almost same with a slight difference.
This company provides Indian Aquaculture Farmers with the best quality Feeds so that the harvest (shrimps) are of top quality. It then processes the shrimps received from the Farmers, Packs it in boxes and sends them to shrimp loving countries like USA, Europe, Japan, Australia, and the Middle East.
The company has also opened a restaurant outlet in Hyderabad which serves various shrimp dishes.
I have come to this company using the smallcase screener
- It has a high return on equity for the last 5 years.
- It has high earnings growth rate
- The Cash Flow numbers are also good for the last three years
- The company is highly understandable
- The company has very little debt
The company was started by Late Shri Alluri Venkateshwara Rao in 1994 in Andra Pradesh along with a Taiwanese company Pingtai Enterprises for technical assistance.
After Shri Venkateshwara’s demise, his son Alluri Indra Kumar took over the company. He collaborated with World’s biggest seafood exporter Thai Union Group in 2008-2009
Further material for investigation:
Religare Report on Avanti Feeds
This is a company which I will investigate further and if found undervalued then will definitely invest.
It is always a good idea to invest in food-processing industries, and the points you listed in favour of this company are surely in for a good return…
But what do u think justifies the need of prawn loving countries importing shrimps from India when people there can raise the same in their own country ???
Good article, by the way…
The same reason for which most of the developed countries import other things from INDIA. CHEAP LABOR. India has a heavy population and rich flora and fauna which allows Indians to produce better quality seafood at cheap prices. If you look at those developed countries like Japan, USA, and Australia they have a much higher per capita GDP.They can’t get labor as cheap as India. Besides this, shrimps there might be of a different type or quality than the shrimps here.