Avanti Feeds :- Long term investment stock !!

Yes Guys , you have heard right , it is lambi race ka ghoda which has given multiple returns in past few years and belongs to most demanding sector that belongs to Beverages, Food & Tobacco Sector.





According To The Few Which Is Critical Factor Which Decide To Allure For Investing In This Stock Are Below :-


1) Revenu :-


An increasing revenue is the sign of a good company. It denotes that the demand for the company’s products or services has increased. Vice versa, a decreasing or stagnant revenue is a bad sign.






2) Net Profit :-





Along with the revenue, the profit of the company should also grow because it is the profit that matters at the end of the day. A company whose profit is stagnant or decreasing should be avoided.


EPS is closely related to Net Profit as it is equal to Net Profit/Number of Shares. Ideally both should follow the same growth pattern, unless the company has diluted its equity by issuing more shares. See Equity Dilution section on this page for further information













3)Growth::- If we look at the 3Yrs Profit Data , this company has given good returns .




In the above table, you can see the effect of equity dilution over EPS growth and DPS growth which otherwise should have been same as the growth in Profit and Dividend respectively.

A company which has been able to maintain a steady growth over a high period of time can be considered more reliable, than the one whose performance fluctuates.


Ideally growth in dividend should follow the growth in profit. If it is not, then that means that the company intends to invest in avenues for future growth or it just wants to keep some cash for the future. But you should be aware about the reasons, just to be sure.