Tuesday, September 13, 2011


Most  of the industries are moving through cycles.Sometimes the length of a cycle is short lived and sometimes it lasts long. We have seen this in IT,Real estate ,Infrastructure ..etc in  recent past.About ten years back aquaculture was a hot industry and many companies from this sector came out with IPO's and listed in stock exchanges.But few years later fortunes of this industry faded and many of the listed companies vanished .Even in a tough time which extends for many years, very few companies managed to survive and ultimately emerge as winners when the entire industry turned around ( Survival of the fittest itself) .I strongly feels Aquaculture/Sea food and allied products is one such industry which is going to start the next up move after a long down trend which lasts more than 5 years.Changing the variety of shrimp , introducing value added products, finding new geographical areas to export ..etc helping  to re capture the past glory of Indian Sea food exports.Being investors in stock market , now our options are very limited in this sector.As I mentioned above there were many listed companies in this sector  about 10 years back.But now there is only three remains with any operations in this field. Out of these three companies Avanti feeds having integrated facilities and better financials.This Hyderabad based company having facilities to manufacture prawn and fish feed and  also in processing and exporting of shrimp.Avanti is jointly promoted and having technical and marketing alliances with worlds largest sea food processing company - Thai Union Frozen Products.TUF holds about 15% of the total equity of the company.Citing the revival in the industry  company is now expanding its operations into Gujrat, Maharastra and Goa for white shrimp farming. Being a producer of feed for entire aquaculture sector ,company will enjoy the benefits of the expansion of other aquaculture ventures.For the last quarter ended June Avanti posted a turnover of Rs.113 Cr V/s Rs.49 Cr and a net profit of Rs.5.4 Cr v/s a loss of Rs.68 lac. EPS for the first quarter is Rs.6.7. After a gap of 3 years ,company declared a dividend of 10 % for last FY. Indian promoter is hiking his stake in the past few quarters. MPEDA is projecting very good growth for this sector in the coming years.In addition to this ,sharp depreciation of Indian Rupee will surely help exporting companies to post improved margins . The other  two listed companies from this space are  Waterbase and Uniroyal marine exports. Considering the nature of operations,marketing and technical tie-up,new initiatives,financial position..etc, Avanti is the best among them.This scrip is traded both in NSE and BSE around Rs.68/- .Medium to long term investors may consider @ CMP or lower level.


  1. Dear value-pick,let me take this opportunity to thank you for your invaluable contribution to amateur investors like me.
    sir i have around 4000 shares of tasty bite & the stock seems to fall everyday,is there any bad news that we are unaware of or is it because of their expansion plans,please throw some light and comment about its future with a 1 year perspective.....thank you.....please keep up the great work

  2. should one buy RAMKY here or wait more?

  3. kuheli

    Let the CBI inquiry result come out

  4. Problem with Tasty Bite is nothing than the rising vegetable prices.But a part of it will be compensated by the favorable exchange ratio.Moreover with the commissioning of new facilities by this FY end , company will increase the supply of products to corporate customers here in India.In such a situation company will be in a better position to pass the increase of raw material price to customers.It is a professionally managed company with good prospects. While we analyses the trading pattern of last few months , as per the delivery percentage just 15000 - 20000 shares delivered from a level of Rs.200 to Rs.115/-.I feels that someone created positions before last qtr result is exiting since it comes below expectation .Those who have patience to hold it for long term can buy it now.

  5. Dear VP ji,

    In this falling market i plan to accumulate a few stocks. Please check these and comment. Also please add up as you are the master of this

    Coromandel Int.
    Yes Bank
    Opto Circuits
    Indag Rubber
    Narmada Gelatine
    Tube Invest
    Jyothy Lab
    LG Brothers



  6. Hi Value pick,
    Can you please tell me what is Delivery / Var+ELM % in the bse stock quote page and what does it signify?

  7. Dear NR

    None of the mentioned scrips are bad

  8. Dear BAJ

    Delivery Means - Percentage of shares not squared off at the EOD


    As mandated by SEBI, the Value at Risk (VaR) margining system, which is internationally accepted as the best margining system, is applicable on the outstanding positions of the members in all scrips.

    a) The VaR Margin is a margin intended to cover the largest loss that can be encountered on 99% of the days (99% Value at Risk). For liquid stocks, the margin covers one-day losses while for illiquid stocks, it covers three-day losses so as to allow the Exchange to liquidate the position over three days. This leads to a scaling factor of square root of three for illiquid stocks.

    For liquid stocks, the VaR margins are based only on the volatility of the stock while for other stocks, the volatility of the market index is also used in the computation.

    For detail info on margins , download the below link


  9. Sir,i have invested a small sum in this stock and i have a some queries:

    1.Since SEBI has raised open offer trigger from 15 to 25%,would/could TUF raise its stake?

    2.Also,in a recently concluded board meeting the Board has approved the Scheme of Amalgamation of Avanti Thai Aqua Feeds Private Limited with the Company,what will be the implication of these developments?


  10. Dear sachin

    Details of the Scheme of arrangement is not known,let us wait for the same

  11. Dear sir,

    Just found this link,management expects growth of 80% next year.



  12. Hi. Have you seen Q2 results! What multiple do you think an aquaculture firm should trade at? It may do a Rs. 40-50 EPS.

  13. Sir,
    I bought Avafeeds at Rs.139 and now it is falling LC each day,now cmp is rs.118.Should I hold or sell now?thanks.-Jai

  14. Eνеry wеekend і used tο pay a quick visit thіs wеb site,
    as i want enјoуment, sincе this thіs ѕіte сοnationѕ геаlly fаstidious funny іnfoгmatіon too.
    My webpage ... paydayloans

  15. what a pick man what a pick n at what price.superb sir.is anyone still holding on to this gem?



Tweet TopOfBlogs