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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Avanti Feeds Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:26 pm

Market Cap 8,101 Cr.
Current Price 594
High / Low793/387
Stock P/E19.4
Book Value 185
Dividend Yield1.14 %
ROCE20.0 %
ROE15.1 %
Face Value 1.00
PEG Ratio-32.94

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Avanti Feeds Ltd

Competitors of Avanti Feeds Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Narmada Agrobase Ltd 59.5 Cr. 15.926.5/13.819.5 5.060.00 %8.79 %6.22 % 10.0
Godrej Agrovet Ltd 13,740 Cr. 716878/47637.4 1231.40 %13.7 %14.9 % 10.0
Avanti Feeds Ltd 8,101 Cr. 594793/38719.4 1851.14 %20.0 %15.1 % 1.00
Ajooni Biotech Ltd 128 Cr. 7.4210.3/4.1552.4 5.000.00 %7.76 %5.12 % 2.00
Industry Average7,323.00 Cr333.3332.1879.520.64%12.56%10.34%5.75

All Competitor Stocks of Avanti Feeds Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales9151,0981,4091,2261,0691,3321,5691,3221,1031,0931,5541,2781,253
Expenses8241,0131,3171,1851,0041,2171,4661,2471,0239601,4161,1851,157
Operating Profit928592416511510375801341389497
OPM %10%8%7%3%6%9%7%6%7%12%9%7%8%
Other Income281817812167262820333434
Interest0101000001000
Depreciation12101010101010101112131414
Profit before tax108939938661211009096140157113116
Tax %20%24%22%14%34%24%27%26%27%28%27%27%28%
Net Profit8670763344927367711011158383
EPS in Rs5.505.125.351.772.956.194.864.164.586.857.815.455.32

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3836261,0931,7091,9352,6163,3933,4884,1154,1015,0365,0875,028
Expenses3385759821,5261,7042,2842,7083,0783,6593,6394,7224,6924,583
Operating Profit4552112182231332684410456461314395445
OPM %12%8%10%11%12%13%20%12%11%11%6%8%9%
Other Income31492023495971935479114
Interest4443355543442
Depreciation4569101424363841414350
Profit before tax4044105180238337704428485510324427507
Tax %30%32%34%35%33%33%34%28%20%22%24%27%
Net Profit283070116158226466307386397245312370
EPS in Rs2.342.215.188.5211.5615.8332.7820.0825.4326.4316.2620.4524.69
Dividend Payout %19%20%19%22%20%19%12%20%20%24%38%31%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)7.14%133.33%65.71%36.21%43.04%106.19%-34.12%25.73%2.85%-38.29%27.35%
Change in YoY Net Profit Growth (%)0.00%126.19%-67.62%-29.51%6.83%63.16%-140.31%59.85%-22.88%-41.14%65.63%

Avanti Feeds Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:9%
3 Years:9%
TTM:7%
Compounded Profit Growth
10 Years:17%
5 Years:5%
3 Years:1%
TTM:23%
Stock Price CAGR
10 Years:17%
5 Years:2%
3 Years:3%
1 Year:50%
Return on Equity
10 Years:22%
5 Years:17%
3 Years:14%
Last Year:15%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:39 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital99999914141414141414
Reserves1161702564146261,0221,1921,3901,7481,8822,0822,3522,502
Borrowings61565811197924431716
Other Liabilities62163154189414488400475517617636716912
Total Liabilities2483984786231,0691,5261,6151,8802,2822,5162,7353,0983,444
Fixed Assets517890104160312293271292273398497550
CWIP2504294292664034915
Investments3540111333605846306801,2359311,0057461,291
Other Assets1612762774444546286839037491,2721,2981,8471,588
Total Assets2483984786231,0691,5261,6151,8802,2822,5162,7353,0983,444

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-215689122278281184178383-212451263
Cash from Investing Activity +5-39-8418-408-269-27-79-366299-418-224
Cash from Financing Activity +1-13-12-74101-45-106-14115-68-65-60
Net Cash Flow-144-666-30-3451-423118-32-21

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow45.00-9.0056.00124.00220.00313.00677.00401.00454.00457.00310.00392.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days231577355868910
Inventory Days718459686379516163857175
Days Payable155124344443242427262527
Cash Conversion Cycle804842412241324442675557
Working Capital Days503326291529263634574648
ROCE %29%52%65%62%57%74%33%32%26%15%18%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters43.68%43.68%43.68%43.68%43.28%43.28%43.28%43.28%43.28%43.28%43.25%43.23%
FIIs17.37%17.11%15.16%14.02%14.06%12.67%12.71%13.06%13.50%13.47%14.11%14.28%
DIIs5.23%6.14%8.18%8.73%8.62%8.75%9.54%9.08%8.81%8.64%7.47%6.41%
Government2.72%2.72%2.72%2.72%2.72%2.72%2.72%2.72%2.72%2.72%2.72%2.72%
Public30.99%30.34%30.26%30.85%31.33%32.57%31.73%31.87%31.70%31.88%32.44%33.36%
No. of Shareholders1,15,8681,07,7451,05,5481,09,0891,05,5671,15,1761,13,7301,12,3441,09,2951,08,9831,10,9021,21,268

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Bandhan Sterling Value Fund2,630,0001.43103.06600,0002024-11-20338.33%
ICICI Prudential Value Discovery Fund2,412,0270.2794.52600,0002024-11-20302%
Bandhan ELSS Tax Saver Fund900,0000.6535.27600,0002024-11-2050%
UTI Small Cap Fund873,9490.9934.25600,0002024-11-2045.66%
ICICI Prudential Balanced Advantage Fund761,4330.0629.84600,0002024-11-2026.91%
Bandhan Multi Cap Fund600,0001.4123.51600,0002024-11-200%
Aditya Birla Sun Life Small Cap Fund513,3110.420.11600,0002024-11-20-14.45%
SBI Conservative Hybrid Fund511,5360.2220.04600,0002024-11-20-14.74%
SBI Conservative Hybrid Fund - Div (Annual)511,5360.2220.04600,0002024-11-20-14.74%
SBI Conservative Hybrid Fund - Div (Monthly)511,5360.2220.04600,0002024-11-20-14.74%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Jun 21Mar 21
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)26.2120.4516.2626.4326.43
Diluted EPS (Rs.)26.2120.4516.2626.4326.43
Cash EPS (Rs.)33.0326.0721.6932.2032.20
Book Value[Excl.RevalReserv]/Share (Rs.)197.38174.45157.61146.03146.03
Book Value[Incl.RevalReserv]/Share (Rs.)197.38174.45157.61146.03146.03
Revenue From Operations / Share (Rs.)394.06373.37369.62300.97300.97
PBDIT / Share (Rs.)43.6235.6029.6340.5740.57
PBIT / Share (Rs.)39.4832.4726.6337.5637.56
PBT / Share (Rs.)39.3931.3524.4737.4437.44
Net Profit / Share (Rs.)28.8922.9418.6929.2029.20
NP After MI And SOA / Share (Rs.)26.2120.4516.2626.4326.43
PBDIT Margin (%)11.079.538.0113.4713.47
PBIT Margin (%)10.018.697.2012.4812.48
PBT Margin (%)9.998.396.6112.4312.43
Net Profit Margin (%)7.336.145.059.709.70
NP After MI And SOA Margin (%)6.655.474.398.788.78
Return on Networth / Equity (%)15.0913.2911.6920.4420.44
Return on Capital Employeed (%)19.5718.3416.7625.5025.47
Return On Assets (%)11.5210.198.8015.7915.77
Long Term Debt / Equity (X)0.010.000.000.000.00
Total Debt / Equity (X)0.010.000.000.000.00
Asset Turnover Ratio (%)1.841.941.92179.821.78
Current Ratio (X)7.156.845.786.686.69
Quick Ratio (X)4.624.352.964.654.65
Inventory Turnover Ratio (X)5.134.595.587.396.10
Dividend Payout Ratio (NP) (%)23.8430.5538.850.000.60
Dividend Payout Ratio (CP) (%)20.5926.5032.810.000.53
Earning Retention Ratio (%)76.1669.4561.150.0099.40
Cash Earning Retention Ratio (%)79.4173.5067.190.0099.47
Interest Coverage Ratio (X)454.74239.96200.89303.91328.22
Interest Coverage Ratio (Post Tax) (X)302.14162.23141.44237.23237.23
Enterprise Value (Cr.)6200.404623.955798.767806.835819.00
EV / Net Operating Revenue (X)1.150.901.151.901.42
EV / EBITDA (X)10.439.5314.3614.1210.53
MarketCap / Net Operating Revenue (X)1.230.901.121.861.38
Retention Ratios (%)76.1569.4461.140.0099.39
Price / BV (X)2.792.212.974.343.21
Price / Net Operating Revenue (X)1.230.901.121.861.38
EarningsYield0.050.060.030.040.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Avanti Feeds Ltd as of November 21, 2024 is: 548.12

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Avanti Feeds Ltd is Overvalued by 7.72% compared to the current share price 594.00

Intrinsic Value of Avanti Feeds Ltd as of November 21, 2024 is: 544.89

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Avanti Feeds Ltd is Overvalued by 8.27% compared to the current share price 594.00

Last 5 Year EPS CAGR: -0.59%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 40.25%, which is a positive sign.
  2. The company has higher reserves (1,211.69 cr) compared to borrowings (20.54 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (80.23 cr) and profit (333.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 35.75, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 47.58, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Avanti Feeds Ltd:
    1. Net Profit Margin: 7.33%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 19.57% (Industry Average ROCE: 12.56%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 15.09% (Industry Average ROE: 10.34%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 302.14
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 4.62
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 19.4 (Industry average Stock P/E: 32.18)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.01
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Avanti Feeds Ltd. is a Public Limited Listed company incorporated on 06/01/1993 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L16001AP1993PLC095778 and registration number is 095778. Currently company belongs to the Industry of Animal/Shrimp Feed. Company’s Total Operating Revenue is Rs. 4047.55 Cr. and Equity Capital is Rs. 13.62 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Animal/Shrimp FeedFlat No. 103, Ground Floor, Vishakapatnam Andhra Pradesh 530003avantiho@avantifeeds.com
http://www.avantifeeds.com
Management
NamePosition Held
Mr. A Indra KumarChairman & Managing Director
Mr. C Ramachandra RaoJoint Managing Director
Mr. A Venkata SanjeevExecutive Director
Mr. Bunluesak SorajjakitNon Executive Director
Mr. Peerasak BoonmechoteNon Executive Director
Mr. N Ram PrasadNon Executive Director
Mr. J V RamuduIndependent Director
Mr. N V D S RajuIndependent Director
Mr. V Narsi ReddyIndependent Director
Mrs. K KiranmayeeIndependent Director
Mr. Raghunath VemaliNominee Director

FAQ

What is the latest intrinsic value of Avanti Feeds Ltd?

The latest intrinsic value of Avanti Feeds Ltd as on 21 November 2024 is ₹548.12, which is 7.72% lower than the current market price of ₹594.00.

What is the Market Cap of Avanti Feeds Ltd?

The Market Cap of Avanti Feeds Ltd is 8,101 Cr..

What is the current Stock Price of Avanti Feeds Ltd as on 21 November 2024?

The current stock price of Avanti Feeds Ltd as on 21 November 2024 is ₹594.

What is the High / Low of Avanti Feeds Ltd stocks in FY 2024?

In FY 2024, the High / Low of Avanti Feeds Ltd stocks is 793/387.

What is the Stock P/E of Avanti Feeds Ltd?

The Stock P/E of Avanti Feeds Ltd is 19.4.

What is the Book Value of Avanti Feeds Ltd?

The Book Value of Avanti Feeds Ltd is 185.

What is the Dividend Yield of Avanti Feeds Ltd?

The Dividend Yield of Avanti Feeds Ltd is 1.14 %.

What is the ROCE of Avanti Feeds Ltd?

The ROCE of Avanti Feeds Ltd is 20.0 %.

What is the ROE of Avanti Feeds Ltd?

The ROE of Avanti Feeds Ltd is 15.1 %.

What is the Face Value of Avanti Feeds Ltd?

The Face Value of Avanti Feeds Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Avanti Feeds Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE