Waterbase Ltd

Waterbase Ltd 

Other Food Products

 

Market Cap.: ₹ 363.61 Cr.

Current Price: ₹ 94.20

Book Value: ₹ 28.59

Stock P/E: 18.95

Dividend Yield: 0.00%

Face Value: ₹ 10.00

 

Company is virtually debt free. Promoter’s share has increased.

How does it compares with Avanti feed?

Net Profit 

Weird cash flow and balance sheet over the year. I got the point of bad loan and too much climate dependency and outbreak of disease but still the company should take steps to fix this.

Model ponds are developed in Nellore for all kinds of Shrimp Farming.

The Company’s mission is to supply products of the highest quality and deliver a superior service to its customers – farmers, shrimp feed dealers, as well as domestic and overseas buyers of processed shrimp.

I will say a very good and informative Annual report and shareholder letter better than Avanti Feed

Shrimp farming is a risky business and prospects are a effected by several factors such as diseases, poor seed quality, fluctuating international prices, weather, seasonal patterns, production costs, etc. Many of these factors cannot be controlled thereby increasing the risk profile of the shrimp business.

Indian people in general don’t like shrimp a lot I guess so it is almost all US and Europe. Thailand is biggest competitor.

In all seafood shrimp is largest commodity in terms of value.

Current price of processed shrimp is in the range of ~ 550- 600/kg i.e. US$ 8-8.2/kg

Final Verdict: May be a great company. Management surely looks capable. Avanti feed looks much better positioned. A lot of risk is involved so not for my appetite.

 

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