proved to be the game changer for Avanti with Kumar spending months convincing more and more farmers to try their luck.
Avanti’s fortunes are tied with the export of shrimps from India which has emerged as the largest supplier to the US and Europe. Since 2009, shrimp exports have grown 2530% — India’s export grew from 75,000 tonnes to over 4 lakh tonnes now.
For Avanti investors, it paid off. The company’s revenues have grown from ₹ 69 crore in FY09 to ₹ 2,230 crore in FY17, a compounded growth of 55%; from a loss of ₹ 4 crore it posted a profit of ₹ 200 crore. In June quarter, net profit trebled year on year to ₹ 1 4 2 c rore; some analysts expect it to close the year with a net profit of ₹ 500 crore amid a rise in global shrimp demand. The stock at ₹ 2,440 is trading at a price-ear nings multiple of 19.5 (based on annualised June-end result)
Analysts’ attention have been drawn to the 60% return on capital, regular dividend payout and almost debt-free balance-sheet. “Avanti is a very focussed company. They started early and they are in a very sweet spot currently,” said Balram Yadav managing director of Godrej Agrovet which has shrimp feeds as one of its businesses.
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