Buy Avanti Feeds, target price Rs 650: ICICI Securities

ICICI Securities has buy call on Avanti Feeds with a target price of Rs 650. The current market price of Avanti Feeds Ltd. is Rs 555.

Time period given by analyst is one year when Avanti Feeds Ltd. price can reach defined target.

Avanti Feeds Ltd., incorporated in the year 1993, is a Mid Cap company (having a market cap of Rs 7527.57 Crore) operating in Aquaculture sector.


Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1116.37 Crore, up 18.30 % from last quarter Total Income of Rs 943.65 Crore and up 6.68 % from last year same quarter Total Income of Rs 1046.43 Crore. Company reported net profit after tax of Rs 70.03 Crore in latest quarter.

Investment Rationale
The brokerage models Avanti to report revenue and PAT CAGRs of 13.2% and 20.2% over FY21-FY23 and also expect its RoE to be stable over the same timeframe. It maintains BUY rating with a DCF-based target price of Rs 650 (implied P/E 17x FY23E EPS; Earlier TP-Rs560).

Promoter/FII Holdings
Promoters held 43.7 per cent stake in the company as of March 31, 2021, while FIIs held 17.8 per cent, DIIs 3 per cent and public and others 35.5 per cent.