Fortune India: A sea of opportunity for Avanti Feeds.
1. The seafood industries has been not only hit by supply related issues due to Covid lockdown but also global demand which form major chunk of the revenues for these companies.
2. The domestic consumption other than coastal areas is yet to catch up in a big way wherin most Indians tend to get their protein requirements from poultry egg and other meat.
3. The health benefits of aquatic meat like fish and prawn is widely known however taste preferences and high cost and availability is prohibiting major pickup in consumption.
4. However rise in aspirations ,per capita income and growing affluence of Indian middle class would be a long term tailwind. Also per capita meat consumption is on the rise globally including India.
5. The point to be noted by retail investors is the stocks of these companies are still languishing at multi year low and cheap in comparison to post covid revenues on normalisation of eating habits across globe.
6. Thus not only their exists a deep value with good margin of safety but long term secular growth of this sector would provide a attractive oppurtunity one should not miss .
#grahamite