Avanti Feeds witnessed a 7% jump in its share price on November 18, 2024, following the release of its robust Q2 FY25 financial results. The company reported significant growth in profitability and margins, driven by higher revenue and operational efficiency.
As of 9:18 am the shares were trading 6.29% higher at ₹617.90
Key Financial Highlights (YoY):
- Revenue: ₹14.0 billion, up 9.3%.
- Net Income: ₹1.14 billion, up 53%.
- EBITDA: Up 44.3% year-on-year.
- Profit Margin: 8.1%, up from 5.8%.
- EPS: ₹8.34, up from ₹5.45.
The improvement in margins, from 7.4% in Q2 FY24 to 10% in Q2 FY25, reflects the company’s ability to optimize costs and leverage increased revenue effectively.
Analyst Reaction and Forward Outlook
- While revenue met analyst expectations, the company’s earnings per share (EPS) fell short by 4.7%.
- Analysts forecast revenue growth at 9% annually over the next three years, slightly trailing the 11% growth expectation for the broader Indian food industry.
Market Performance and Sector Impact
Despite strong quarterly results, Avanti Feeds’ share price remained relatively flat over the past week, with today’s jump indicating renewed investor confidence. The robust EBITDA growth and margin expansion could position the company favorably within the competitive Indian food sector.
Risk Analysis
Investors should be mindful of a warning sign identified in the company’s financial profile. Analysts suggest monitoring potential risks to maintain balanced expectations.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Always consult a financial advisor before making investment decisions.
