APEX Frozen Foods 🍤

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APEX Frozen Foods is one of the leading supplier of shrimps in India. Started business in 1995 as a private firm and became public in 2017. Company is involved in farming, processing & sale of shrimps in India and across the border.


About APEX:

  • Situated in 'Kakinada' a coastal town in the state of Andhra Pradesh ( AP )
  • AP accounts for 55 - 60% of total production of Shrimp in India
  • Advantage of wast coast line of AP providing a good breeding ground for shrimps and easy access to ports
  • Farming, Hatchery and Processing are part of the company providing good control over pricing & administration
  • Wide variety of products ( raw, pealed, speciality & ready to eat ) 
  • Recently launched a variety of products in `Read to Eat` segment
  • Key export markets are USA, EU and China



Why invest in APEX?

  • Company is progressing
    • Owned a processing unit which was leased out earlier
    • Launch of Read to Eat products which is high in demand
    • Debt-Equity ratio is less than 0.5 and company is repaying debt on regular basis
  • Shrimps business is lucrative & demand does not likely to drop by restaurants or by households
  • Household demand increased during pandemic adjusting drop in demand by restaurants
  • Pandemic is over, one can expect a major shift in life style & spending on leisure
  • Good export opportunities including South East Asian nations
  • Shrimps are a small subset of seafood varieties, there is a huge potential to extend the wings to other seafood varieties with the help of existing infrastructure and knowledge
  • Share price: 294.50 @ NSE on 09-Jan-22 which is ~2 times the book value, maintaining PE ratio ~20
  • Share is not trading high, its at dip; a good opportunity for buyers

Peers or Competitors:
Avanti Feeds
Coastal Corporation 
Zeal Aqua 

 

INVEST


Comments

  1. Muthu_JustBeingMeJanuary 9, 2022 at 5:50 AM

    Hi Nagaraj..Good Analysis..do you think they can gain Additional Market share..what is you view on Avanti Feeds..

    ReplyDelete
  2. Nagaraj BasarkodJanuary 9, 2022 at 8:20 AM

    IMO they have good potential in coming days, even Q2 figures of current year are promising, competition is less.

    Avanti Feeds: Supply of "Shrimp Feed" is their main business owning 100% stake in it; rest of them are subsidiaries (Frozen Foods, Export Import company, Power Sector). This is also a good opportunity to invest your money in.
    Debt - 0, BookValue ~146( consolidated ), Share Price is ~4 times that of Book Value

    Avanti Feeds appears bit conservative in expanding the business, 0 debts, investments in debt funds & Investing in business away from core business.

    ReplyDelete

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