Avanti Feeds Rallies 8% As Company Makes Right Noises
On Wednesday, it was observed that the Avanti Feeds rallied over 8 per cent in the morning trading session. It put its dismal show behind. This was possible as top executive tried to calm nerves about the state of affairs in the company.
The Managing Director of the company, Indra Kumar has also informed that the shrimp demand has normalised and the company has order for the next 6 months.
Today, the scrip was trading 8.67 per cent up at Rs 1,471 at around 10 am whereas the BSE Sensex was up 94 points, or 0.28 per cent, at 34,999.70. The Managing director went on saying that the he is not worried about margins as the business is doing pretty good. He informed that there is nothing to worry about the business side. Correction in shrimp prices has caused demand to go up.
Ever since April 26, the shares of the company have been on a downhill and taken a knock of 45 per cent.
It is expected that the company might grow by at least 10 per cent in capacity utilisation in FY19, while at present the capacity utilisation in processing is of 60-65 per cent.
The company is expecting an average of 10-12 per cent of profit margin in FY19.