At a Glance:Avanti Feeds has bounced from a seafood commodity play to a ā¹10,000+ Cr aquaculture giant. Despite 5-year net profit compounding at 9%, margins have fluctuated, and working capital days have spiked to 107. Pet care bets and exports to the US & Japan are helping ā but is it enough to outswim volatility?
1. š¢ What Does Avanti Feeds Do, Exactly?
- Core biz:Shrimp feed manufacturing and shrimp processing (frozen exports)
- Clients:Global markets like US, Japan, South Korea
- Hatchery operations: High-quality shrimp larvae
- Pet Care foray (2023):Entered via Avanti Pet Care Pvt Ltd, leveraging feed R&D for doggos & cattos
- Moat:Strong distribution among Indian shrimp farmers + integration from hatchery to exports
2. š§¾ 5-Year Financial Snapshot
| FY | Revenue (ā¹ Cr) | Net Profit (ā¹ Cr) | OPM (%) | ROCE (%) | EPS (ā¹) |
|---|---|---|---|---|---|
| 2021 | 4,101 | 397 | 11% | 26% | 26.43 |
| 2022 | 5,036 | 245 | 6% | 15% | 16.26 |
| 2023 | 5,087 | 312 | 8% | 18% | 20.45 |
| 2024 | 5,369 | 394 | 9% | 20% | 26.21 |
| 2025 | 5,612 | 557 | 11% | 25% | 38.81 |
ā”ļø5-Year CAGR:
- Revenue:6%
- PAT:9%
- Stock Price:10%
3. šø Dividend & Cash Flow Discipline
- Dividend payout ~25% average over last 5 years
- Debt: Just ā¹15 Cr on ā¹3,683 Cr balance sheet = Basically debt-free
- FY25 CFO: ā¹583 Cr | FCF positive
- Healthy ROCE/ROE despite commodity exposure
4. š§ Margin Pressure: Just the Nature of the Shrimp Game?
- OPM dropped from 20% (FY18) to 6% (FY22) ā recovered to 11% in FY25
- Raw material inflation, freight costs, and export hurdles played spoiler
- Still, consistent bounce-back shows underlying pricing power
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