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Friday, August 23, 2019

Amira Nature Foods Ltd
NYSE: $ANFI

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OVERVIEW

Amira Nature Foods Ltd

The Problems Amira is Solving


Based on a 2017 research conducted by the Cleveland Clinic, obesity is the number one cause of preventable death in America, far surpassing tobacco use. With said, overweight people have higher chances of stroke; high blood pressure; diabetes; heart disease; and gallbladder disease. It can also cause various forms of cancer, like breast, colon, and prostate. Furthermore, with obesity now exceeding 30% in 29 states, the U.S. is facing a severe epidemic on its hands. The lack of healthy food choices has created an opportunity for companies brave enough to tackle this crisis. One of those companies pushing the charge for healthy eating is Amira Nature Foods Ltd. (NYSE: ANFI).

About Amira Nature Foods Ltd.

Amira is a global leader in the basmati rice market with more than $570M of (LTM) sales. The company has over 300 SKU’s (a stock-keeping unit, SKU is a product and service identification code for a store or product, often displayed as a machine-readable bar code that helps track the item for inventory) with sales in over 60 countries. The company markets its products to customers in the Asia Pacific, Europe, the Middle East, North America; and wholesalers and retail chains in India. Furthermore, the company has their merchandises in Costco, Whole Foods, Publix, Safeway and several other locations in the US. The company is in business for over 100 years; Amira has accumulated several accolades, including being named as one of India’s fastest-growing mid-sized companies(2010, 2011, 2012, and 2013). Amira's headquarters are in Dubai, UAE. However, it has offices in India, Germany, the U.S., and the U.K. With over 15 distribution centers in India and additional manufacturing in Germany, no one can doubt Amira’s global role. The company sells more than 20 in-house products worldwide.

Amira Major Source of Income


Amira Nature Foods (NYSE: ANFI) Offers A Healthy Choice That Americans Are Missing Now, you might be thinking that all rice is the same. However, that’s not true. In fact, basmati rice only grows in the foothills of the Himalayas. Basmati rice is rich in vitamins, fiber, protein, and carbohydrates. In addition, you can find several minerals like calcium, potassium, zinc, copper, selenium, iron, and magnesium. The health benefits of basmati rice include: lowering blood pressure, preventing disease, helps with weight loss, and sustains a healthy brain and bones. With that said, Amira draws a majority of its revenue through the sale of basmati rice. Given its unique health advantages, demand for basmati rice is estimated to rise over the upcoming years. The global market for basmati rice is anticipated to reach $17.7B by 2022, at a CAGR of 11.1% (2017 to 2022), according to data out of Research Report Insights. Amira is one of the significant players in the domestic India market. In fact, India sales doubled as the Company expanded its client base of large distributors and started operating 15 distribution centers as part of its strategy to increase penetration and better volumes in its import home market. Amira’s expanded portfolio includes prime basmati rice, value basmati rice, organic foods, and snacks.

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Potential

SHARES POTENTIAL

On December 27th, 2018, ANFI closed at .525 per share, which is the current price also. The firm’s stock price has traded from the range of $.41 to $4.44 over the last 52 weeks.
The Relative Strength Index (RSI) for the stock is at 41.46 as of December 27th, 2018 in once the market closed. Which means that the stock is nowhere near at the overbought conditions. This indicator is helpful a lot because it allows traders to essentially “forecast” when a dip or a run might occur. When the RSI reaches 70… be extra careful because the stock might take a downturn. On average, about 207,607K shares are traded daily (10-day average). As of December 26th, 2018, ANFI had a market cap of approximately $12.98M.
ANFI is 1400% off the 52-week highs, which was back in January of 2018. In other words, there is plenty of upside in the stock when comparing the risk vs. reward.

Professional Team

Amira Nature Foods Ltd is worldwide locations. The company has locations across the globe and supplies the world with healthy food which causes people to live a healthier lifestyle.

Share Structure

Market Cap of $12.98 Million
Enterprise Value $284.25 Million
41.07 Million Outstanding Shares
Float is 19.52 M
Relative Strength Index is at 41.46.

Amira's Potential Value

Amira had a market capitalization of $11.75M as of Dec. 21, 2018. Now, based on value ratios, ANFI is undervalued. Currently, the stock is trading at a price-to-sales ratio of 0.03, while the industry median is 1.90, according to Morningstar. In addition, it had a price-to-earnings ratio (P/E) of 1.15, while its competitors had an average P/E of 11.79.

Additional Potential

Not only is the stock potentially undervalued based on its revenues and earnings, but ANFI is also trading well under its list value, with a price-to-book ratio of 0.05, while the industry average is 1.81.

Constantly Bringing Healthy
Food to Our Clients

Amira's Advantages

Global known with entrenched roots – With procurement, processing, and distribution facilities throughout the Basmati rice producing region Diversified supplier base and buying power – Longstanding relations with comprehensive channels of procurement agents and a huge number of local Indian paddy farmers, which allows Amira to source high consistently- quality paddy at competitive prices Organic sourcing initiative – Advanced organic sourcing initiatives which will allow Amira to source and sell certified natural products in India, Europe, and the US Reliability to valued customers – Establishment and fostering of firm relationships across five (5) continents and with numerous of the world’s premier retailers Global label and value-added offerings – Focus on providing customers with consistently high-quality, authentic specialty rice Adding value with state-of-the-art processing capacities – State-of-art, fully automated and combined the processing and milling facility with a capacity to process c.24 metric tons of paddy per hour Stability of supply – Ability to deliver large numbers of high-quality merchandises worldwide in a timely fashion, which is crucial to the success of both the Amira branded and third-party branded businesses

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UPCOMING

Looking Ahead

Concluding Thoughts

With ANFI trading well under the industry average for some essential valuation ratios, it could be a value play, and could also bring potential buyers. This is based on Morningstar as a source. Furthermore, Amira was able to increase at a compound annual growth rate of 15.5% between 2010 and 2017. With such high revenue growth rates, this company could be significantly undervalued by the market. According to Finviz, over 50% of the corporation is owned by insiders. That in mind that confirms that the company’s officers, directors, and critical insiders are confident in the company. Based on various fundamental ratios, ANFI is estimated to be “cheaper” than its competitors on a value basis. ANFI focuses its marketing on an essential commodity, rice, that can resist any economic cycle. In fact, this could be one of the best plays at the current moment. Given the company’s growth rate over the past several years, there could be an endless level of upside potential.

Farmers

Time Efficent

Marketing

Healthy Food

Disclaimer

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