Avanti Feeds has been a significant under performer for last 4 years. The stock from a high of about Rs 1400 in November 2017 is currently trading at Rs 570 per share.
Main reasons for this underperformance –
- Correction post euphoria of 2016-2017 wherein the stock had quickly multiplied by 6x within 1 year.
- Covid led disruption for last more than 18 months.
Stock has been tightly consolidating since January 2020, and seem to be getting set for an upmove.
With Covid waning and outside/ packed food eating picking up, demand for shrimp feed and processed shrimp should start start building providing operational impetus to the Company’s financial performance and consequent investor’s interest.
Volumes in the stock do point towards accumulation phase coming to an end and from hereon the stock can witness significant outperformance.