Building a successful portfolio can be challenging. However, there is no better time to create one than during a market carnage, when stocks are cheap.
However, again, knowing what to buy is tough. So, we have done the work for you and are sharing two stocks worth watching in this market. Mayuresh Joshi of William O’Neil has shared these stocks as part of the Champions Trophy Winning-11 Portfolio. They are selected on attributes such as aggression, consistency, all-around performance, and X-factor.Here are the picks:
#1 Avanti Feeds
The first stock on the list is Avanti Feeds, which William O’Neil India described as having the aggressive traits of Captain Rohit Sharma.
Avanti dominates the processing and distribution of shrimp feed products, with a 50% market share in the domestic feed business. It has five shrimp feed manufacturing units and two shrimp processing units in India.
ALSO READNew stocks or old multibaggers: Where to invest after a bear market?
Avanti Feeds is an export-focused company. In FY24, 83% of its revenue came from North America, 11% from Europe, and the remaining from Asia. 80% of its revenue comes from shrimp feed, while 20% comes from shrimp processing.
The company’s revenue growth remained stagnant for 3 years due to stiff competition from Ecuador, the world’s largest shrimp exporter and producer. In addition, high freight rates, disruptions in the Red Sea and muted international prices impacted the company.
Its consolidated revenue during FY22-24 was stuck in the ₹50-53 billion range. Its profit, however, grew from ₹2.4 billion in FY22 to ₹3.9 billion, but it remains at the same level as ₹3.9 billion in FY21. The margin increased from 8% to 11.1% during the period.
Notably, the company’s profit declined from ₹3.9 billion in FY21 to ₹2.4 billion in FY22 due to a drop in margin to 8% from 13.5%. However, the company gradually regained some margin, improving to 11.1%, leading to improved profit.
Nevertheless, the company has shown good growth in FY25 due to favourable industry prospects. In 9MFY25, while its revenue grew 3.5% year-on-year (YoY), profit rose 42% to ₹4.0 billion. The improved profit growth also widened its margins to 13.5%.
The company is debt-free and has strong return ratios. Its return on capital employed (RoCE) and return on equity (RoE) are 28.7% and 29.3%,
» Read More
