This multibagger fisheries stock has delivered over 37,000% returns in 10 years

One multibagger that has proven everyone wrong at the Street is Avanti Feeds. This company, primarily engaged in exporting shrimps, has delivered unbelievable returns of 37,430 percent in the last 10 years.

In fact, in the last one year, the stock has risen 95 percent. Moreover, it has climbed to Rs 622.90 as on February 13 from Rs 1.66 on December 31, 2009.

Interestingly, foreign institutional investors (FIIs) have also increased their stake in the stock. In December 2019, the FII holding rose to 15.69 percent from 13.93 percent in September 2019.

The stock is further looking at a much bigger rally especially after the Finance Minister during Budget 2020 announced that the government is aiming to raise the fish production by 200 lakh tonnes. This will come as an even bigger boost for the sector that will receive increased revenues.

In the case of earnings, the company saw a net profit drop of 35 percent year-on-year (YoY) at Rs 47.85 crore in the quarter ended December 31. Meanwhile, the total income increased by 11 percent YoY.

Edelweiss in its recent report said, “The Shrimps processing business has reported healthy sales growth of 14.8 percent YoY at Rs 232cr on account of improvement in its capacity utilization. We expect the capacity utilization to improve, which expected to deliver volume growth of ~12 percent in FY20.”

The report further stated that the shrimp processing business had reported healthy sales growth of 14.8 percent YoY at Rs 232 crore on account of improvement in its capacity utilization.

"We also expect to achieve a sales volume of 14,300 MT with an improvement in its capacity utilization to 65 percent in FY20," it said.

The brokerage maintained a ‘buy’ rating on the stock after it took benefit out from the corporate rate cut.