Multibagger penny stock: Despite steep declines in the Indian stock market, one stock which remain unaffected was Avanti Feeds. The stock has proven to be wealth creating machine for its long-term investors by delivering multibagger returns.
Let’s take a look at the share price history of Avanti Feeds. In the last 15 years, Avanti Feeds shares have skyrocketed from ₹1.52 to ₹830 currently after the price adjustment post-bonus shares in 2018, delivering return of 54,505 per cent.
To put it in perspective, an investment of ₹1 lakh made 15 years ago in the stock and held over time would have grown significantly to ₹5.46 crore. This could have been even more but while making this calculation, we have not taken the post-bonus benefit as Avanti Feeds traded ex-date on 20 June 2018 for issuance of bonus shares in a 1:2 ratio.
Avanti Feeds stock movement
Avanti Feeds share price rallied over 2.97 per cent on Monday’ trading session, touching an intraday high to ₹842 apiece on Bombay Stock Exchange (BSE).
In long-term, Avanti Feeds stock has risen over 161 per cent in the last five years. The stock has gained as much as 58.46 per cent in last one year.
The stock has attracted short-term investors as well. Avanti Feeds shares have ascended over 19 per cent in over six months. Meanwhile, it has gained nearly 11 per cent in a month.
In terms of year-to-date (YTD), the stock has surged 22.44 per cent, rising from ₹670.65 to the current market price.
Avanti Feeds financial overview
Avanti Feeds reported an 86.5 per cent year-on-year (YoY) increase in net profit, reaching ₹135.2 crore for the quarter ending December 2024, driven by higher margins and improved operational efficiencies.
Revenue rose 9 per cent YoY to ₹1,365.8 crore, supported by steady demand for its shrimp feed and seafood export business.
In Q3 FY25, consolidated revenue grew 9 per cent YoY, fueled by a 14 per cent rise in feed segment volumes. Although shrimp export volumes declined by 4 per cent YoY, the impact was offset by improved shrimp prices and favorable foreign exchange rates.
Operationally, Avanti Feeds’ EBITDA soared 65.4 per cent year-on-year to ₹160.4 crore, while its margins significantly expanded to 11.7 per cent for the quarter, driven by cost efficiencies and improved realizations.
Avanti Feeds is a prominent producer of shrimp feed, with a manufacturing capacity of 7,75,000 MT, and a shrimp processing and export operation handling 29,000 MT. The company supplies multiple international markets, including Europe, Japan, Korea, China, Russia, Canada, and the Middle East. It has a strategic partnership with Thailand’s Thai Union Group and continues to thrive due to strong global demand.