Buy Avanti Feeds\, target price Rs 565: Geojit

Geojit has given buy rating to Avanti Feeds with a target price of Rs 565. The share price moved up by 6.59 per cent from its previous close of Rs 471.90. The stock’s last traded price is Rs 503.

Avanti Feeds Ltd., incorporated in the year 1993, is a Mid Cap company (having a market cap of Rs 6429.43 Crore) operating in Aquaculture sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 955.40 Crore, down 7.67 % from last quarter Sales of Rs 1034.81 Crore and down -12.63 % from last year same quarter Sales of Rs 1093.49 Crore. The Company reported net profit after tax of Rs 115.74 Crore in latest quarter.

Investment Rationale
Demand outlook remains uncertain in the short-term but is expected to witness healthy recovery in FY22E. The brokerage values AFL at 19x to arrive at a revised Target of Rs.565 (Rs550 earlier), and maintains Buy rating considering healthy RoE & NIL debt.

Promoter/FII Holdings
Promoters held 43.7 per cent stake in the company as of June 30, 2020, while FIIs held 32.7 per cent, DIIs 17.4 per cent and public and other 6.2 per cent.