Avanti Feeds

I have been holding Avanti Feeds since around Oct '16. Average Cost price around INR 480/-. Had purchased with a calculated intrinsic value of around INR 900/- from an FY20 perspective.

Updated Q4 results into my Valuation Model. The calculated Fair Value is now coming to around INR 1200/- (based on FY21, EPS projections). I use the FCFE model for valuations ....

Hence for the first time, this stock is "OverValued" as per me ...

Should I sell, and book profits at current levels?

 

Congratulations sir , Profit booking is very very important in any investment , if you want to book profit
sell slowly in market rallies in partial profit booking in 3 to 4 parts and take back your entire initial capital with some profit and hold some shares for long term investment

ALL THE BEST SIR

 

Thank you sir for your reply. My question was also from a valuation perspective ... was wondering if any other investor on these forums have valued this stock ... and what's their take on the intrinsic value ...

 

sir
Dont depend up on others Fair value calculation , because it may correct or not
depend on stock growth aspects , comparative advantage , Management abilities and Valuations also

so dont get emotion with others suggestions ,
please write down on paper , why you sell this company ? main reasons you have to write on paper
if you satisfied those reasons do according to your own analysis

in my view your stock selection and buying price and also holding period is reflecting
you are a class one Investor sir

so please use that capabilities and reasons also in selling also

ALL THE BEST Sir

 

Just hold this stock with conviction. Still it is not overvalued. You can buy this up to 1400. Hold for next 2/3 year. Still a multi-bigger stock.

 

I bought avanti feeds at Rs 870 in April. It has given around 80% returns in just 3 months. The company PE is still below the industry PE and I'm bullish for the stock.

The company's financial looks healthy. The Sales and net profilt is consistently increasing for last couple of years.

Overall, I'm going to hold the stock till the company's fundamentals change. Cheers!

 

I am holding since early 2016 and I would advise you to kindly hold....I say so because of the following reasons :
1. Their expansion plans will see benefits in the next 2 years.
2. Historically Q1 and Q2 are their best quaters.
3. Q4 gave a glimpse of the revenue and profit numbers based on their feed expansion - results of their shrimp processing is yet to come.
4. Dolly Khanna had spotted this stock few years back and since then has been constantly selling this stock.....she did a U-Turn and started buying in the last quater.....

 

Don't look PE. Look at the future prospects of the company only. PE has no relation with fundamentals.