Waterbase Limited- a promising multi bagger
Another Avanti Feeds in Making!!
Based in Nellore, Andhra Pradesh
Background
-Waterbase Ltd was the first to introduce Feed for the Vannamei Species in India and today has a very dominant share of the Vannamei Species feed Market.
-The Company has a well established distribution network and is well respected for its Technical excellence.
-The Company today is working to full capacity in its feed mill and has invested in additional
Machinery to enhance its capacity to meet the demands. Presently Vannamei species has been
extensively introduced in Andhra Pradesh and it is expected that once infrastructure is in place
it will be introduced in the other states of Orissa, Tamil Nadu, West Bengal, Gujarat and
Maharashtra.
-An unfavourable monsoon would lead to increased input costs like feed and in turn may affect the growth of shrmp farmers. Delayed monsoon has affected power generation in Andhra Pradesh, which is one of the major producers of Vannamei shrimps.
- The price of Raw Materials like Soya, Fish meal, Wheat etc have risen to record highs which continue to be of concern to the industry.
-Disease has devastated the shrimp industry in Thailand, Vietnam, China and Malaysia over the last few years. India has been free of disease but like all living technologies, this continues to be a threat.
Another Avanti Feeds in Making!!
Based in Nellore, Andhra Pradesh
Background
-Waterbase Ltd was the first to introduce Feed for the Vannamei Species in India and today has a very dominant share of the Vannamei Species feed Market.
-The Company has a well established distribution network and is well respected for its Technical excellence.
-The Company today is working to full capacity in its feed mill and has invested in additional
Machinery to enhance its capacity to meet the demands. Presently Vannamei species has been
extensively introduced in Andhra Pradesh and it is expected that once infrastructure is in place
it will be introduced in the other states of Orissa, Tamil Nadu, West Bengal, Gujarat and
Maharashtra.
-The reduction in the Anti-dumping duty by United States and decreasing exports from other South East Asian
countries especially Thailand helped to increase the exports of Shrimps from India. The overall industry's Shrimp Export grew
by about 33.50% over the previous year.
Threats / Risks and concerns
-An unfavourable monsoon would lead to increased input costs like feed and in turn may affect the growth of shrmp farmers. Delayed monsoon has affected power generation in Andhra Pradesh, which is one of the major producers of Vannamei shrimps.
- The price of Raw Materials like Soya, Fish meal, Wheat etc have risen to record highs which continue to be of concern to the industry.
-Disease has devastated the shrimp industry in Thailand, Vietnam, China and Malaysia over the last few years. India has been free of disease but like all living technologies, this continues to be a threat.
Performance of the Company
The company has performed well over the last year. The Turnover has increased by 45% and the profit before tax increased by 169%.
Positives
Company has reduced debt from 25.11 crores to 11.85 crores nearly halved it.
Promoter's stake has increased
Net Profit after tax increased from 13.57 to 18.01 crores
Negatives
Company is not paying dividends despite with increased profits.
Conclusion
At the CMP of 49.5 rs and a market cap of around 190cr, this is a great level to enter the stock for medium to long term.It is for high risk investors.
The company has performed well over the last year. The Turnover has increased by 45% and the profit before tax increased by 169%.
Positives
Company has reduced debt from 25.11 crores to 11.85 crores nearly halved it.
Promoter's stake has increased
Net Profit after tax increased from 13.57 to 18.01 crores
Negatives
Company is not paying dividends despite with increased profits.
Conclusion
At the CMP of 49.5 rs and a market cap of around 190cr, this is a great level to enter the stock for medium to long term.It is for high risk investors.
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