Avanti Feeds Limited (AVANTIFEED) AI Stock Analysis

• Market Cap: ₹160.07B
• Dividend Yield: 1.05%
• Average Volume (3M): 107.95K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.50
• Revenue Growth: 10.54%
• EPS Growth: 47.85%
• Country: IN
• Employees: 1,308
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 11.00
• Shares Outstanding: 136,245,640
• 10 Day Avg. Volume: 25,077
• 30 Day Avg. Volume: 107,948
• PEG Ratio: 0.47
• Price to Book (P/B): 4.25
• Price to Sales (P/S): 2.15
• P/FCF Ratio: 24.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 43.15
• Revenue Forecast (FY): ₹59.92B

• Rating: 73 Outperform
• Price Target: ₹1,390.00 ▲(56.81% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

Overall score is driven primarily by strong financial performance (rapid revenue growth, improved profitability, and an exceptionally low-leverage balance sheet). Offsetting this, technical indicators show an overbought setup despite strong momentum, and valuation looks moderately expensive with a low dividend yield.

Positive Factors

Very low leverage & strong equity base

An extremely low debt-to-equity ratio (0.0054) and high equity funding (76.05% of assets) materially reduce solvency and refinancing risk, giving management capacity to fund growth, absorb shocks, or pursue strategic moves without needing leverage. A strong ROE (18.88%) indicates efficient use of shareholder capital, supporting durable returns and financial resilience over time.

Robust revenue growth

A 69.5% year-over-year revenue surge reflects meaningful demand expansion across feed and processing segments, implying growing market share or stronger pricing/volumes. Such durable top-line momentum enables better fixed-cost absorption, supports scaling benefits and reinvestment in capacity or product mix, and provides a structural platform for longer-term margin improvement.

Improved operating cash generation

Operating cash flow covering net income by 1.41x and rising free cash flow point to higher earnings quality and real cash conversion. Reliable cash generation supports reinvestment in capacity, working capital needs, and strategic initiatives without heavy external financing, strengthening the company’s ability to fund growth and withstand sector cycles over the medium term.

Negative Factors

Eroding gross margins

A material drop in gross margin from 19.62% to 12.89% signals structural cost pressure or weaker pricing power in key inputs or products. If sustained, margin erosion undermines operating leverage and requires either permanent pricing adjustments, sustained efficiency gains, or heavier volume growth to preserve net profitability, creating a persistent profitability headwind.

Suboptimal free-cash-flow conversion

Converting only ~76% of net income into free cash flow indicates cash tied up in working capital or ongoing capex needs. Over time this reduces the firm’s ability to self-fund further capacity, increase cash buffers, or return cash to shareholders, limiting financial flexibility despite reported earnings growth and constraining responses to industry shocks or investment opportunities.

Exposure to aquaculture & export volatility

The business is structurally exposed to biological and market risks: harvest seasonality, disease outbreaks, export demand swings, FX moves, and regulatory/quality barriers. These persistent external factors can cause sizable, recurring swings in feed volumes and processing realizations, increasing long-term revenue and margin volatility and complicating planning.

Avanti Feeds Limited Business Overview & Revenue Model

Company Description

Avanti Feeds Limited manufactures, processes, exports, and supplies shrimp feeds in India, the United States, and internationally. The company provides shrimp feeds for aqua culture to grow shrimps; and technical support services for the farmers. It also offers hatchery; and frozen shrimps. In addition, the company engages in the generation and sale of electricity from four windmills with a capacity of 3.2 MW in Chitradurga, Karnataka. It markets its products through a dealer network. The company was incorporated in 1993 and is based in Hyderabad, India.

How the Company Makes Money

Avanti Feeds makes money mainly through two operating segments: (1) Shrimp feed and (2) Shrimp processing/export. In the shrimp feed business, the company earns revenue by manufacturing compound shrimp feed and selling it to aquaculture farmers and dealers; earnings in this segment are driven by feed volumes sold and feed pricing, which are influenced by shrimp farming activity and input costs (e.g., raw materials used in feed formulation). In the shrimp processing business, the company generates revenue by sourcing shrimp (from farms and other suppliers), processing it (grading, peeling/deveining, freezing and packing, including value-added formats where applicable), and selling the finished products to customers—predominantly in international markets—at contracted or prevailing market prices; profitability depends on processing volumes, product mix, export realizations, and the spread between raw shrimp procurement costs and selling prices, along with operating efficiency and compliance costs required for exports. Overall earnings are also affected by factors such as shrimp harvest cycles, disease incidence in aquaculture, export demand in key destination markets, foreign exchange movements on export sales, and regulatory/quality requirements for seafood exports. Specific partnerships and customer concentration details: null.

Avanti Feeds Limited Financial Statement Overview

Summary

Strong fundamentals: very high revenue growth (+69.5%) and improving profitability (net, EBIT, and EBITDA margins). Balance sheet is a major strength with extremely low leverage (debt-to-equity 0.0054), high equity ratio (76.05%), and solid ROE (18.88%). Cash flow is improved and covers net income well (1.41x), though free-cash-flow conversion (FCF/NI 0.76) and the lower gross margin (12.89% vs 19.62%) temper the score.

Income Statement

Avanti Feeds Limited shows strong revenue growth with a remarkable 69.5% increase in the latest year, indicating robust demand and market expansion. The gross profit margin has decreased to 12.89% from 19.62% the previous year, suggesting increased cost pressures. However, the net profit margin improved to 9.53%, reflecting effective cost management and operational efficiency. The EBIT and EBITDA margins also show improvement, indicating better profitability from core operations.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.0054, highlighting a conservative capital structure with minimal leverage risk. The return on equity is strong at 18.88%, demonstrating effective use of shareholder funds to generate profits. The equity ratio of 76.05% indicates a solid financial foundation with a high proportion of assets funded by equity.

Cash Flow

Operating cash flow has significantly improved, covering net income by 1.41 times, indicating strong cash generation from operations. Free cash flow has grown substantially, although the free cash flow to net income ratio of 0.76 suggests room for improvement in converting profits into free cash flow. The company has shown resilience in cash flow management despite previous fluctuations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2020
Income Statement
Total Revenue	59.67B	55.49B	53.12B	50.37B	49.81B	40.37B
Gross Profit	15.01B	7.15B	5.00B	7.84B	6.26B	6.77B
EBITDA	9.35B	8.00B	5.96B	4.74B	3.65B	5.24B
Net Income	6.19B	5.29B	3.57B	2.79B	2.22B	3.46B
Balance Sheet
Total Assets	42.35B	36.83B	30.98B	27.35B	25.16B	18.80B
Cash, Cash Equivalents and Short-Term Investments	27.63B	19.39B	14.31B	12.47B	8.85B	8.34B
Total Debt	150.13M	151.37M	172.27M	30.54M	40.83M	15.64M
Total Liabilities	8.31B	5.03B	4.09B	3.58B	3.69B	2.85B
Stockholders Equity	30.10B	28.01B	23.65B	20.95B	18.95B	14.04B
Cash Flow
Free Cash Flow	8.34B	4.84B	1.32B	2.92B	-2.79B	1.43B
Operating Cash Flow	8.75B	6.37B	2.63B	4.51B	-2.12B	1.78B
Investing Cash Flow	-7.49B	-5.40B	-2.24B	-4.18B	2.99B	-790.63M
Financing Cash Flow	-1.16B	-835.93M	-603.89M	-654.53M	-682.82M	-1.41B

Avanti Feeds Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 886.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AVANTIFEED, the sentiment is Positive. The current price of 886.45 is below the 20-day moving average (MA) of 1262.17, below the 50-day MA of 1072.84, and above the 200-day MA of 814.12, indicating a neutral trend. The MACD of 27.77 indicates Positive momentum. The RSI at 53.98 is Neutral, neither overbought nor oversold. The STOCH value of 73.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AVANTIFEED.

Avanti Feeds Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVANTIFEED	73 Outperform	₹160.07B	17.33	―	1.05%	10.54%	47.85%
GRMOVER	72 Outperform	₹28.16B	38.77	―	―	-8.29%	4.70%
LTFOODS	69 Neutral	₹133.07B	21.49	―	0.74%	18.77%	5.76%
COASTCORP	64 Neutral	₹2.91B	10.74	―	0.48%	33.80%	2962.90%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HERITGFOOD	62 Neutral	₹28.85B	30.82	―	0.54%	9.83%	-0.92%
PARAGMILK	61 Neutral	₹24.18B	30.64	―	0.33%	13.73%	32.07%

Avanti Feeds Limited Corporate Events

Avanti Feeds Posts Q3 FY26 Earnings Call Transcript for Investors

Avanti Feeds Limited has released the transcript of its post-earnings audio conference call with investors and analysts, held on March 3, 2026, covering its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The company has made this transcript available to stakeholders via its website, underlining its focus on transparency and regular communication with the market.

Senior leadership from Avanti Feeds and its key subsidiaries, including Avanti Frozen Foods and Avanti Pet Care, participated in the call, highlighting the integrated nature of its aquaculture and pet care operations. By formally notifying the stock exchanges and sharing detailed discussions from the earnings call, Avanti Feeds aims to keep investors informed about its recent performance and strategic directions, which may influence investor perceptions and corporate governance credibility.