2 AVANTIFEED share price target reports by brokerages below. See what is analyst's view on AVANTIFEED share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Avanti Feeds Ltd (AFL), is a leading manufacturer of Shrimp Feeds with a capacity of 6,00,000 MT, and Shrimp Processor & Exporter with a ca- pacity of 22,000 MT. AFL has a tie-up with Thai Union Group, Thailand. Revenue grew by 41%YoY in Q2FY20 mainly supported by strong jump in Feed volumes (50%YoY) while processing segment growth was at 9%YoY. The significant surge in feed volume was due to delayed com- mencement of shrimp culture in Q1FY20 to Q2FY20 (flat growth in Q1FY20) and market share gains (48% Vs 45% YoY). Blended EBITDA grew by 79%YoY aided by 250bps improvement in margins. Gross/EBITDA margin improved by 60bps/250bps. Recent surge in farm fate prices impacted processing margins (12.1% Vs 14.8% YoY). However, this will encourage shrimp culture activities, and hence improve feed volumes. Industry feed consumption is expected to be at same level of FY19, but market share gains will support AFL’s feed volume. Shrimp export prices have stabilised. We have slightly reduced export volumes considering lower growth in Q2FY20. Expect Revenue/PAT to grow at 16%/28% CAGR over FY19-21E. We value at 16x considering healthy growth & RoE and no debt, maintain Buy rating with revised target of Rs520 (Rs.427 earlier).
The recent improvement witnessed in farm-gate and export prices provides better outlook for both Feed & Processing segments. We roll forward to FY21E, continue to value at 15x considering healthy growth & RoE and no debt, main- tain Target of Rs427 with Buy rating.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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