ANFI ( Amira Nature Foods Ltd .)
Alert Price: $1.05
Target Price: $6.00
Website | Recent News
Our biggest NYSE-listed winner of 2019 looks ready to breakout big once again!
It's time to add ANFI ( Amira Nature Foods Ltd .) back to the top of your watchlist.
After pulling back substantially from its 52-week high, ANFI appears to have found its bottom.
The Company has recently made some market friendly announcements that we believe will serve as huge catalysts for an epic chart reversal.
Announced the hiring of Brian M. Speck as Chief Financial Officer. With his many years of U.S. public company accounting experience Mr. Speck will assist ANFI in Westernizing their finance department as they focus on the international growth of their brands.
Entered into contracts, which consist of approximately $9 million in revenue, to supply rice and institutional products to new customers in the Europe, Middle East, and Africa (“EMEA”) and Asia regions. The Company expects to recognize the benefit of this contract in the 2020 fiscal year ending March 31, 2020. “We are extremely pleased to announce this order, which along with our previously announced customer order of $42M, amounts to over $51M. This equates to securing 26% of our forecasted $200M of FY2020 revenue just 52 days (14%) into the fiscal year”, stated Karan A. Chanana, Amira’s Chairman.
ANFI's recent strategic moves have us extremely on this past triple-digit winner.
In fact, we've done our very own chart analysis and see the potential for a move of over +153% in the very near future!
If you've been following our recent alerts, you should know that our price targets have been pretty much right on the money.
But that price target is quite modest compared to what Wall Street analysts are betting on.
Top 10 Wealth Firm Puts $6.00 Price Target on a $1.00 Stock
Jefferies analyst Akshay Jagdale recently maintained his Buy rating on ANFI and set a price target of $6.
That's an upside of +471% from today's alert price!
If you go to Google and search for the "Top 10 Wealth Firms" you'll notice that " Jefferies Wealth Management" is in the top 10 in the country.
If that wasn't enough to have you sold on ANFI , you'll be happy to know that Jefferies isn't the only equity research firm that is on ANFI ...
Diamond Equity Research, a leading equity research and corporate access firm with a focus on small capitalization public companies recently initiated coverage on ANFI , and slapped on a $4.00 price target!
That's well over +280% in upside potential from today's alert price.
Their full research report is available here.
To say that ANFI is undervalued at its current share price would be the understatement of the year.
Here are a few other reasons why we have an extremely outlook ANFI:
Low float of just 25.82M
Listed on the NYSE (High Liquidity)
Products now available on Amazon in the United Kingdom. The Company is initially offering its Brown Basmati Rice 2kg product and is looking forward to adding more products.
Reiterated its $200 million revenue guidance for the 2020 fiscal year ending March 31, 2020. Going forward, the Company’s focus will be on strengthening its international business and as such the 2020 fiscal year $200 million revenue guidance consists solely of international revenue (ex-India).
Jefferies analyst Akshay Jagdale recently maintained his Buy rating on ANFI and set a price target of $6.
Trading well below its average analyst price target of $6.00 (+471% Upside)
Its previously announced $30 million contract to supply third party branded basmati rice to a repeat customer in the Europe, Middle East, and Africa (“EMEA”) region was increased to $42 million within the provisions of the contract. The Company expects to recognize the benefit of this contract in the 2020 fiscal year ending March 31, 2020.
It's Indian subsidiary, Amira Foods India (“Amira India”), has converted Amira India debt into ordinary shares of Amira India. As a result of the debt conversion, the Company’s ownership in Amira India decreased from 80.4% to 49.8%. This event is a continuation of Amira’s focus on strengthening the Company’s international business.
It is our opinion that ANFI is shaping up to be one of the top growth/value plays listed on the NYSE at the moment.
As such, we ask that all members start their research on ANFI immediately, and consider building a position this morning at 9:30AM EST
About Amira Nature Foods
Founded in 1915, Amira has evolved into a global provider of packaged Indian specialty rice, with sales in over 40 countries today. Amira sells Basmati rice, premium long-grain rice grown only in certain regions of the Indian sub-continent, under their flagship Amira brand as well as under other third party brands. Amira sells its products primarily in emerging markets through a broad distribution network. Amira’s headquarters are in Dubai, United Arab Emirates, and it also has offices in India, Germany, the United Kingdom, and the United States.
Large Staple Consumer Category with Highly Supportive Industry and Sub Category Fundamentals
A Market Lead with Differentiated Business Model
Globally Diversified with Wide Customer Base and Broad Product Portfolio
Vertically Integrated "State-of-the-art" Supply Chain and Operations
Strong Financial Track Record, Underpinned by Stable Margins
Highly Experienced and Successful Management Team
Announced that its previously announced $30 million contract to supply third party branded basmati rice to a repeat customer in the Europe, Middle East, and Africa (“EMEA”) region was increased to $42 million within the provisions of the contract. The Company expects to recognize the benefit of this contract in the 2020 fiscal year ending March 31, 2020.
Since its founding in 1915, Amira has evolved from a domestic, family owned Indian business to a professionally managed, global branded, publicly traded, growing packaged food company.
Not only is the stock potentially undervalued based on its revenues and , ANFI is also trading well below its book value, with a price-to-book ratio of 0.10, while the industry average is 1.81.
With ANFI trading well below the industry average for some key valuation ratios, it could be a value play, and could even attract potential buyers.
Moreover, 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 company is owned by insiders. That in mind, that shows that the company’s officers, directors, and key insiders are confident in the company.
The Company has received numerous accolades:
Since 2010, Amira has been recognized in multiple years by the World Economic Forum as a “Global Growth Company”, an
invitation-only community consisting of ~300 of the world’s fastest-growing corporations
The World Consulting & Research Corporation named Amira one of “Asia’s Most Promising Brands”
Planman Marcom voted Amira the “INDIAN POWERBRAND” in the Food Category in 2011 and 2013
Amir was voted best partner in the “Staples” category in 2013 at the Bharti Walmart Private Limited Annual Supplier Conference
VWP World Brand recognized the Amira Brand as “The Admired Brand of India” in 2014–2015
Inc. India featured Amira as one of India’s fastest growing mid-sized companies in 2010, 2011, 2012 and 2013
Approximately three quarters of sales come from Basmati rice, the core focus of the company;
Sells more than 20 owned brands globally, spanning numerous price points;
Amira in India
Amira has established 15 Company managed distribution centers in India to provide it greater control over its expansion efforts in its home country location.
Amira is one of a handful of large relevant players in the domestic India market.
Amira represents a meaningful opportunity to consolidate the market over time.
Business Is Growing, Strategic Moves Will Expedite Growth
Amira Foods is no startup. The international business is healthy and generated roughly $270 million in sales in 2018. Those numbers are coupled with respectable margins that rested at 14.3% of gross sales. However, the company expects to do better with the expectation to add an additional 100bp to the international margins. Notably, there will some be shrinkage to the margins, which may be adjusted lower to account for the separation of the Indian business, due to less vertical integration and less sourcing from the primary processor. However, even with the expected reductions in the margin and certain efficiencies, analysts are pointing to ANFI being able to maintain separate sales of roughly $200 million, albeit with a lower margin of approximately 650bp. However, even with the expected short-term declines, the assumption of the lesser $200 million in sales coupled with an EBITDA margin of an expected 8.8%, can imply that ANFI will generate a positive EBITDA run of roughly $17 million. And, that is a healthy number to build upon.
Appointment of Thomas Dennhardt (formerly Lidl) to CEO of Amira Basmati Rice GmbH (German subsidiary)
Board appointment of Hervé Larren (formerly LVMH), bringing experience in building brands internationally
EUR25mn Debt raise at 8.5% interest rate (due December 2023)
Reduced ownership of India subsidiary to 49.8%
Regains Compliance with NYSE Listing Requirements
Amira Nature Foods Ltd Hires Brian M. Speck as Chief Financial Officer
Amira Nature Foods Ltd (the "Company") ( ANFI ), a global provider of packaged specialty rice, today announced the hiring of Brian M. Speck as Chief Financial Officer. The Company continues to focus on the international growth of its brands and as such, continues to take steps to Westernize its corporate finance and executive team.
Karan A. Chanana, Amira’s Chairman, commented, “Brian Speck is an excellent addition to our team, bringing his extensive financial and consumer industry background to the Company. We believe his many years of U.S. public company accounting experience will assist Amira in Westernizing our finance department as we focus on the international growth of our brands.”
“I am excited to join the Company at a pivotal time in its history and helping it realize its international growth strategy,” Mr. Speck said. “After spending nearly two decades in various accounting roles, I look forward to bringing my experience to assist Amira’s efforts to grow its brands outside of India.”
Since March 2018, Mr. Speck has been the Chief Financial Officer of Surge Holdings, Inc., a provider of a suite of financial and telecommunications services which are primarily marketed through small retail establishments which are utilized by members of its target market. Since October 2013, Mr. Speck has also been Director of Financial Reporting for Brio Financial Group, which the Company recently announced would be assisting the Company in its ongoing financial reporting. In his capacity at Brio, Mr. Speck consults various private and public companies in financial reporting, internal control development and evaluation, budgeting and forecasting. Prior to joining Brio, from 2011 to 2013, he was an audit supervisor at Wiss & Company. In that capacity, he was involved in the firm’s accounting and tax practice with industry focuses in manufacturing, wholesalers, construction contractors and professional service firms. Mr. Speck received a Master of Science in Accounting from Kean University.
Amira operates in the global packaged rice market and is a leading provider of Basmati rice, a long-grain aromatic rice with favorable health attributes that can be grown only in specific regions of the Indian sub-continent and part of the Punjab region located in Pakistan. The global rice market is an enormous market with stable growth, while specialty rice and specifically Basmati rice benefits from premium pricing and increasing consumption patterns. Demand for Basmati rice has remained strong over the past 10 years due to the increased consumption trends both in India and internationally. Leading players such as McCormick & Co., Hain Celestial, Rice 'n Spice, LT Foods , East End Foods , and Amira Nature Foods serve local as well as global consumers, which is reflected in the growth of Basmati rice market. The size of worldwide Basmati rice market was approximately $10.51 Billion in 2017 and is estimated to be worth $17.74 Billion by the end of 2022, with a robust CAGR of 11% between 2017 and 2022, according to Transparency Market Research (TMR).
Rice is a $275bn Global Staple Category with Favorable Market Conditions
Rice is the primary staple for >50% of the world’s population and provides > 20% of the global caloric intake
Represents 30% of caloric consumption in Asia(4)
Defensive and non-cyclical with steady growth
Improves with age and has an extremely long shelf life (up to 5+ years) if stored properly
Global rice consumption is growing, estimated to reach c.483 million metric tonnes in 2017(5)
The global rice market is estimated at $275B and has grown at 2% CAGR over the 2010 – 2015 period
As we stated above, we've done our very own chart analysis and see the potential for a move of over +153% from here!
We see a positive reversal from long-term support right here, and a positive cross looks imminent.
The float of ANFI is extremely low for a NYSE listed company at just 25.82M.
We know this ticker can make big moves on , so we wouldn't be too surprised if this ticker starts to breakout early.
With its $6.00 price target, we believe its upside potential far outweighs any downside risk.
The Bottom Line
ANFI has proven its ability run-up big in both the short and long-term.
ANFI has the potential to be the biggest gainer on the NYSE, and deserves to be on the top of your watchlist.
That being said, we ask that all members start their research on ANFI immediately, and consider building a position tomorrow morning at 9:30AM EST
(*Remember to use a Stop-Loss Order or basic Limit Order to protect your gains, as well as limit possible losses.)
The PennyStock101 Team
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