Avanti Feeds shares gain after foray into pet care segment

Shares of Avanti Feeds rose slightly on July 19 after the company established a subsidiary, Avanti Pet Care Private Limited, to expand into manufacturing and marketing pet food and pet care products.
In its regulatory filings, the company said, “This subsidiary sells, among other things, pet health products such as pet food and feed, pharmaceuticals, shampoos, soaps, creams, grooming products, and other grooming-related pet care products (including pet grooming equipment). ) are engaged in the manufacture and sale of It is the same product as existing shrimp feed.

The newly established subsidiary he plans to complete the implementation of the project within two years.
Investors recognized that expansion of Avanti Feeds into new business areas could generate revenue. As a result, the stock hit a high of 417 rupees before trading at 408 rupees from the previous day’s close. Avanti Pet Care was incorporated in Hyderabad on 18th July under company identification number (CIN: U46204TS2023PTC175105). Analysts are bullish on the stock, even though they believe the slowdown in shrimp production is likely to continue into 2024.
“Farmgate price stability indicates that shrimp farming activity is expected to improve gradually. Given the current weak demand, AFL’s price target has been set at 13 times FY25 EPS (3-year average = 15%). ), achieving a target price of Rs 469 and maintaining a ‘buy’ rating on improved profit margins,” said Vincent Andrews, research analyst at Geojit Financial Services.