Geojit Assigns "Buy" On Small Cap Aquaculture Stock, Sees 22% Gains, Trading near 52 Week Low

Geojit has come up with a "Buy" on Avanti Feeds Ltd. for a target price of Rs 420 apiece. It can fetch up to 22% gains if you buy the stock at the current market price today. Avanti Feeds is an Aquaculture sector small cap having a market capitalisation of Rs 4,716.14 crore. Below are key takeaways:

Stock's Current Market Price, Returns & 52-Week Low/High

The stock is currently trading at Rs 346.65 apiece, up 2.12% from the previous close. It is trading near its 52 week low. It recorded on 28 March 2023 at Rs 321.10 apiece. While the 52 week high on 16 September 2022 at Rs 527.85 apiece. It gained 4.97% in the past 1 week. However, it gave 5.23% negative return in the past 1 month and 11.21% in the past 3 months, respectively. It gave 17.09% negative return in the past 1 year. It gave 22.04% positive return in the past 3 years. It gave 56.07% negative return in 5 years.

Capacity expanded...margin gradually improves

According to Geojit, Despite the current slowdown in demand in export markets, an improvement in farmgate prices suggests that shrimp culture activities are expected to improve. "AFL is prepared for the next stage of growth with new capacity. We value AFL at 12x FY25EP/E (3Yr avg=15x) to arrive at a Target of Rs. 420, upgrade to Buy rating due to correction in valuation," the brokerage has said.

About - Avanti Feeds Ltd.

Avanti Feeds Ltd. (AFL) is a leading manufacturer of shrimp feeds with a capacity of 7,75,000 MT and a shrimp processor & exporter with a capacity of 22,000 MT. AFL has a tie-up with Thai Union Group, Thailand.

Disclaimer - The stock has been picked from the brokerage report of Geojit. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.