Avanti Feeds Limited

Consumer Defensive — Packaged Foods · NSE

₹728.00−₹1.15 (−0.16%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Avanti Feeds Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Avanti Feeds Limited, together with its subsidiaries, manufactures and sells shrimp feeds in India, the United States, and internationally. The company operates through three segments: Shrimp Feed, Shrimp Hatchery, and Power Generation.

IndustryPackaged Foods

SectorConsumer Defensive

Employees1,406

Annual revenue₹5,975 Cr

How does it make money?

Turns over ₹5,975 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 1,406 employees supports ₹4.25 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.25 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 23.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.4% against a peer median of 51.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE51.0%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 7.4% and earnings to grow about 39.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+7.4%

Est. earnings growth+39.3%

Analysts2

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +19% while net margin moved +83% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+19%

Margin effect+83%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.15 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

74/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

18.2x

3Y Median

24.0x

40 monthly readings · mean 24.4x · range 16.1x–35.6x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 24% below its 3y median of 24.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 65% below the peer median of 51.7x.

vs. its own history

Cheap

24.0x median over 40 months · -24%

vs. sector peers

Cheap

51.7x median of 4 peers · -65%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.9x

PEG

0.62

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 8.9% to 15.2% over 3 years.
Cash generation is improving
Free cash flow is up 45% over 3 years.
Return on equity is rising
ROE has improved from 13.3% to 18.4%.
Return on capital is rising
ROCE has improved from 17.7% to 23.5%.
High return on capital employed
ROCE of 23.5% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 333% over 3 years, from ₹3 Cr to ₹13 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 8.9% to 15.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 24% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 65% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹424 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 5.9% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 13%✓ 15.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.9% CAGR
Latest reported year was 18.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹424 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 23.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹9,919 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.2x

Fair

Fairly valued against the generic band

P/B Ratio

3.02x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹39.98

Profitable

Profitable on a per-share basis

ROE

18.4%

Strong

Strong capital efficiency

ROCE

23.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

18.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-42.1%

Falling

Profits are shrinking

Dividend Yield

1.37%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹424 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

16.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

4.8%

Weak

Thin margins leave little room for error

Net Margin

8.4%

Average

Average bottom-line conversion

Current Ratio

5.58

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.15

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

731.3 / 794.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,037 Cr	₹5,312 Cr	₹5,525 Cr	₹5,975 Cr	+5.9%
EBITDA	₹450 Cr	₹548 Cr	₹738 Cr	₹911 Cr	+26.5%
EBITDA Margin	8.9%	10.3%	13.3%	15.2%	—
PAT (Net Profit)	₹279 Cr	₹357 Cr	₹529 Cr	₹606 Cr	+29.6%
EPS	₹20.45	₹26.21	₹38.81	₹44.48	+29.6%
ROE	13.3%	15.1%	18.9%	18.4%	—
ROCE	17.7%	19.6%	22.9%	23.5%	—
Total Debt	₹3 Cr	₹17 Cr	₹15 Cr	₹13 Cr	+63.0%
Free Cash Flow	₹292 Cr	₹129 Cr	₹432 Cr	₹424 Cr	+13.3%

🟢 Revenue has grown at 5.9% a year over 3 years.

🟢 EBITDA has grown at 26.5% a year over 3 years.

🟢 EBITDA Margin has risen from 8.9% to 15.2% over 3 years (+6.3 pts).

🟢 PAT (Net Profit) has grown at 29.6% a year over 3 years.

🟢 EPS has grown at 29.6% a year over 3 years.

🟢 ROE has risen from 13.3% to 18.4% over 3 years (+5.1 pts).

🟢 ROCE has risen from 17.7% to 23.5% over 3 years (+5.8 pts).

🔴 Total Debt has grown at 63.0% a year over 3 years.

🟢 Free Cash Flow has grown at 13.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,260 Cr

Total Liabilities

₹552 Cr

Cash & Equivalents

₹42 Cr

Operating Cash Flow

₹505 Cr

Capex

-₹81 Cr

Shareholding (proxy)

Institutional Holding

10.6%

Insider Holding

70.9%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

07 Aug 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹809.5

+11.2% vs CMP

Target Range

₹669 – ₹950

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

2 positive3 mixed1 general

There's A Lot To Like About Avanti Feeds' (NSE:AVANTIFEED) Upcoming ₹10.00 Dividend

Simply Wall Street, 04 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

AVANTIFEED Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Half Yearly Results, Half yearly Earnings for Avanti Feeds

The Economic Times, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Avanti Feeds acquires 10% stake in new Ecuador aquaculture feed entity

scanx.trade, 17 Oct

Avanti Feeds Q1 FY27 slides: revenue rises 18% but margins sink

Investing.com India, 27 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Avanti Feeds Q1 Results FY27: PAT Rs 116 Cr, Revenue Rs 1899 cror

Univest, 14 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑