Avanti Feeds stock falls to fresh 52-week low, among top BSE losers today
The stock is down more than 50% after it hit a record high of 3,000 level on November 13, 2017. The stock has fallen 41.43% in the last one month and since May 26, 2018, it is down 38%.
- Jun 5, 2018,
- Updated Jun 5, 2018 1:30 PM IST
The Avanti Feeds stock fell in morning trade today a day after the firm announced a 3.1% year-on-year fall in Q4 net profit. At 10:55 am, the stock was trading over 11% lower at Rs 1,324 level on BSE. The stock was among the top BSE losers in trade today. The manufacturer of prawn, fish feeds, shrimp processor and exporter reported Rs 86 crore for the quarter ended March 31, 2018 compared with Rs 88.7 crore net profit in the fourth quarter of the previous fiscal.
On a quarter-on-quarter basis, the firm reported 18% fall in net profit compared to Rs 105.06 crore in Q3 of last fiscal.
Its operating profit margin at 14.08% in Q4 is the lowest in the last five quarters.
With declining profitability, the firm has created lower earnings for its shareholders. Its earnings per share (EPS) fell to Rs 18.26 per share in Q4 of last fiscal, the lowest in the last five quarters.
The firm clocked 24.22% rise in sales in Q4 of 2018 at Rs 834.28 crore compared to Rs 671.61 crore during the same period in last fiscal.
The stock fell up to 17.29% on BSE in morning trade hitting an intra day and fresh 52 week low of 1,232 level on BSE.
The stock has been losing for the last five days and has fallen 23.84% during the period.
The stock is down 1.74% during the last one year and has fallen 44.93% since the beginning of his year.
The stock is down more than 50% after it hit a record high of 3,000 level on November 13, 2017. The stock has fallen 41.43% in the last one month and since May 26, 2018, it is down 38%.
The sudden fall in the stock price is a puzzle for many who have seen the stock rise 40,000 percent during the last 10 years.
According to media reports, it's the fall of demand for shrimps in global markets which is seen as a trigger for the stock price crash.
Shrimp prices have fallen during the last 3-4 months which is said to affect the profitability of the firm.
On the sudden fall in stock price, the firm said, the steep fall in export prices of shrimps witnessed during the past 3 to 4 months was due to certain global developments such as temporary decline in consumption of shrimps in US due to extended winter coupled with stable shrimp production in countries like Indonesia, Vietnam. The shrimp imports by China from Vietnam were also curtailed due to Chinese Regulatory reasons. The decline in price is only a temporary reaction and the consumption of shrimps in US has come back to normalcy and the demand started picking up and would be restored to normal level soon and even expected to go up, which is expected to trigger increase in prices.
On the fall in stock price due to a decline in farm gate prices, the firm said it is true that the farm gate price of shrimps has fallen steeply in the past few months, reducing the margin (ROI) of the farmer drastically. This, initially, gave a knee-jerk reaction among the farmers to consider to slow down shrimp culture activity. However, now the farmers are in the process of realising that the fall was a temporary phenomenon, as the farm gate price of the shrimps is gradually increasing now, which will make the shrimp culture much more profitable than other agricultural crops.
The Avanti Feeds stock fell in morning trade today a day after the firm announced a 3.1% year-on-year fall in Q4 net profit. At 10:55 am, the stock was trading over 11% lower at Rs 1,324 level on BSE. The stock was among the top BSE losers in trade today. The manufacturer of prawn, fish feeds, shrimp processor and exporter reported Rs 86 crore for the quarter ended March 31, 2018 compared with Rs 88.7 crore net profit in the fourth quarter of the previous fiscal.
On a quarter-on-quarter basis, the firm reported 18% fall in net profit compared to Rs 105.06 crore in Q3 of last fiscal.
Its operating profit margin at 14.08% in Q4 is the lowest in the last five quarters.
With declining profitability, the firm has created lower earnings for its shareholders. Its earnings per share (EPS) fell to Rs 18.26 per share in Q4 of last fiscal, the lowest in the last five quarters.
The firm clocked 24.22% rise in sales in Q4 of 2018 at Rs 834.28 crore compared to Rs 671.61 crore during the same period in last fiscal.
The stock fell up to 17.29% on BSE in morning trade hitting an intra day and fresh 52 week low of 1,232 level on BSE.
The stock has been losing for the last five days and has fallen 23.84% during the period.
The stock is down 1.74% during the last one year and has fallen 44.93% since the beginning of his year.
The stock is down more than 50% after it hit a record high of 3,000 level on November 13, 2017. The stock has fallen 41.43% in the last one month and since May 26, 2018, it is down 38%.
The sudden fall in the stock price is a puzzle for many who have seen the stock rise 40,000 percent during the last 10 years.
According to media reports, it's the fall of demand for shrimps in global markets which is seen as a trigger for the stock price crash.
Shrimp prices have fallen during the last 3-4 months which is said to affect the profitability of the firm.
On the sudden fall in stock price, the firm said, the steep fall in export prices of shrimps witnessed during the past 3 to 4 months was due to certain global developments such as temporary decline in consumption of shrimps in US due to extended winter coupled with stable shrimp production in countries like Indonesia, Vietnam. The shrimp imports by China from Vietnam were also curtailed due to Chinese Regulatory reasons. The decline in price is only a temporary reaction and the consumption of shrimps in US has come back to normalcy and the demand started picking up and would be restored to normal level soon and even expected to go up, which is expected to trigger increase in prices.
On the fall in stock price due to a decline in farm gate prices, the firm said it is true that the farm gate price of shrimps has fallen steeply in the past few months, reducing the margin (ROI) of the farmer drastically. This, initially, gave a knee-jerk reaction among the farmers to consider to slow down shrimp culture activity. However, now the farmers are in the process of realising that the fall was a temporary phenomenon, as the farm gate price of the shrimps is gradually increasing now, which will make the shrimp culture much more profitable than other agricultural crops.