When you think of India’s aquaculture boom, one name that consistently surfaces is Avanti Feeds Ltd. Founded in 1993, the company has built a dominant presence in the shrimp feed and seafood processing industries. But as the landscape evolves, how well is Avanti adapting? This blog breaks it down from every possible angle: origin, business lines, market size, risks, opportunities, financials, and more.
How Did Avanti Feeds Begin Its Journey?
Avanti Feeds started as a small operation in Andhra Pradesh. Over three decades, it has expanded into a full-fledged aquaculture company with end-to-end capabilities—from hatchery to shrimp feed production to processing and export. It now commands a lion’s share of India’s shrimp feed market and exports products to the US, Europe, China, and other major economies.
What Are Avanti Feeds’ Core Business Segments?
Think of Avanti Feeds like a well-coordinated orchestra:
- Shrimp Feed (The Composer): With an annual capacity of 775,000 MT, this is Avanti’s largest revenue driver. Products like Manamei and Prostar are designed for various shrimp growth stages.
- Hatcheries (The Strings): Capable of producing 600 million post-larvae annually, this segment ensures a healthy supply of shrimp to farmers.
- Farming (The Rhythm): Working with over 16,000 farmers, Avanti offers technical support and best practices.
- Processing & Export (The Brass): Operated via its subsidiary Avanti Frozen Foods, the company processes 29,000 MT annually and exports cooked and raw shrimp to global markets.
Who Are Avanti’s Clients and Target Markets?
Avanti primarily operates in the B2B space, supplying shrimp feed to farmers and exporting processed shrimp to international retailers and wholesalers. Major markets include the US, EU, and Japan.
How Is Avanti Feeds Performing in the Market?
As of May 30, 2025:
- Stock Price: ₹839 (Moneycontrol)
- 52-Week Range: ₹486 – ₹965
- Market Cap: ₹11,428 crore
- Q4 FY25 Net Profit: ₹157.19 crore (+45.83% YoY)
- Quarterly Sales: ₹1,385.14 crore (+7.92% YoY)
- Dividend Yield: 0.79%
- Book Value: ₹206
How Does It Compare with Industry Peers?
(Data from Screener.in)
| Company | CMP (₹) | P/E | Market Cap (₹ Cr) | Dividend Yield (%) | NP Qtr (₹ Cr) | Qtr Profit Var (%) | Sales Qtr (₹ Cr) | Qtr Sales Var (%) | ROCE (%) |
|---|---|---|---|---|---|---|---|---|---|
| Varun Beverages | 475.50 | 57.76 | 160,807.74 | 0.21 | 731.36 | 35.22 | 5,566.94 | 28.94 | 24.85 |
| Hatsun Agro | 964.25 | 75.26 | 21,478.51 | 0.63 | 49.64 | -4.81 | 2,210.33 | 7.99 | 13.27 |
| Bikaji Foods | 763.00 | 98.42 | 19,120.20 | 0.13 | 39.92 | -65.66 | 613.62 | -0.14 | 18.07 |
| L T Foods | 441.55 | 25.33 | 15,333.04 | 0.46 | 160.52 | 7.91 | 2,228.36 | 7.40 | 19.23 |
| Godrej Agrovet | 765.85 | 36.53 | 14,729.49 | 1.33 | 66.10 | 15.70 | 2,133.64 | -0.03 | 16.49 |
| Zydus Wellness | 1,949.55 | 36.37 | 12,405.40 | 0.26 | 171.90 | 14.37 | 913.10 | 16.68 | 6.32 |
| Avanti Feeds | 838.80 | 21.68 | 11,428.30 | 0.79 | 157.19 | 45.83 | 1,385.14 | 7.92 | 25.09 |
We have done a blog on Bikaji Foods, head over the link to know more!
What Do the Key Financial Ratios Indicate?
| Metric | Value (FY24) |
|---|---|
| EPS | 22.61 |
| Cash EPS | 24.09 |
| Book Value/Share | 206 |
| Dividend Yield (%) | 0.79 |
| P/E Ratio | 21.7 |
| ROCE (%) | 25.1 |
| ROE (%) | 20.5 |
What’s New Around Avanti?
Recent headlines have been positive. Avanti announced plans to enter the Indian pet food market through a partnership with Thailand’s Bluefalo. Operations are expected to start by March 2025, with a new 30-acre manufacturing site in the pipeline.
Source: FundsIndia
What Are the Opportunities for Avanti?
- Diversification: Entry into fish feed and pet food reduces overdependence on shrimp feed.
- Strategic Partnerships: Collaboration with Thai Union boosts tech and global access.
- Eco-Friendly Innovation: Use of plant-based algal feed aligns with sustainability trends.
- Government Support: Aligned with India’s aquaculture promotion policies.
What Risks Should Investors Know About?
- Commodity Volatility: Prices of fishmeal and soybean affect margins.
- Disease Outbreaks: Shrimp are vulnerable to health risks, impacting feed demand.
- Foreign Exchange Risks: Export-heavy model exposes it to rupee-dollar fluctuations.
- Regulatory Risks: Compliance with environmental and export regulations is critical.
What Type of Investor Does Avanti Suit?
May Be Suitable For:
- Investors looking for exposure to agribusiness and exports
- Those interested in mid-cap stocks with a track record of profitability
May Not Suit:
- Risk-averse investors due to commodity and export market risks
- Those seeking high-dividend yield stocks
What Lies Ahead for Avanti?
With strong financials, diversification plans, and sustainability initiatives, Avanti Feeds appears poised for strategic growth. The company is adapting to a changing market while maintaining its core strength in shrimp feed and exports.
Disclaimer: This article is for informational purposes only and should not be interpreted as financial advice or a recommendation to buy or sell any securities. All data is accurate as of May 30, 2025.
