Where is the next leg of growth going to come from?
Avanti is doing a capex of upto 150 cr for Pet products. Even a bullish 2x asset turn will give 300 cr revenue (~5% of current topline). Frozen shrimp export (around 20% of total sales) expected to grow by ~17%. While the main business of shrimp feed is expected to grow in single digits.
This report says the shrimp feed market in India could grow by ~16% without mentioning any specifics. The same old story of disposable income increase, low calorie high protein source, etc has been around forever.
Why are we going gaga over this company? What changed?
Even if the smaller companies are troubled, where will the intrinsic growth in Avanti come from?
Invested. Enjoyed the recent bullish rally. Re-evaluating my position.
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