Shrimp feed manufacturer Avanti Feeds is rising by double digits today in share price on high volumes, as the company turned ex-bonus. The company had announced one bonus share for every two shares held on the record date, which is June 27. Investors wishing to receive the bonus shares had needed to own Avanti Feeds by Monday.
A stock-split also takes effect from Tuesday (June 26) for Avanti Feeds shares - the face value of the stock is reduced from Rs 2 to Rs 1. Tthe company is still below its 50 day and 100 day price averages in share price owing to large declines in the last month. However even with the recent fall, the Avanti Feeds' valuation remains expensive, and the outlook for the company in the international market is mixed.
While Avanti Feeds expects demand from China to be strong in the coming quarters, demand from the US is likely to be muted, owing to envrionmental conditions in the region. This means that revenue outlook for FY19 is not likely to surpass FY18 considerably.