Waterbase a multi bagger in the long run

About Company

The Waterbase Limited is a small cap aquaculture company with a market capitalization of rs 579 cr located at Nellore; Andhra Pradesh.The company is promoted by the respected Thapar Group.  , a well known business conglomerates in India. 

Waterbase exports shrimps in different forms to quality conscious markets of Japan, USA and Europe The shripmp fedd manufacturing  unit has the capacity to produce  4000 metric tones per annum  with international standard. The company is pioneer in introducing Vannamei shrimp feeds in India and the manufacturing unit is installed as per HACCP guidelines.The firm also supports domestic farmers  for aqua farming.

NB: My assumption is that ace investor Dolly Khanna is accumulating the stock. (Not Sure)

Unique Features of the Company

1.                                        Research and Development

The Company gives great emphasis to Research and Development to ensure that farmers are provided with tested quality of Inputs to obtain Optimum Food Conversion Ratio (FCR) and help in good farm management.Waterbase has dedicated Research and Development Farms to study the growth of Shrimps under various conditions.

2.                                        FEED MILL

The Shrimp Feed Mill Started its commercial production in 1993. The Feed was well received by the Shrimp growing farmers in Coastal Districts of India. The salient feature of Feed Mill is

3.                                        Feed Marketing Network

Waterbase has a Feed distribution network of over 100 distributors and dealers, along the Coastal belt of India. The distribution network is supported by qualified and trained personnel who provide 24x7 services. They also assist farmers in farming techniques and advise the farmers on various developments in the Industry.

4.                                        Organic Feed

The Government of India through MPEDA is planning to develop Indian Aquaculture Industry as a major ‘Organic Aquaculture Industry’ in Asia. Waterbase has been selected as the Indian Partner in implementing the ‘Organic Feed Programme’ .

Future of Aqua Feed Industry In India:

• As per an estimate,released by Yes Bank at the Global Grain & Global Feed event on 8th July 2015  India’s aquaculture feed demand is to touch 7 million tonnes by 2017-18
• As per the , currently, India’s aqua feed consumption is around 1 million tonnes and assuming on an average 1.5 feed conversation ratio (industry standards), the demand for aqua feed comes to around 7 million tonnes by 2017-18, the report said.
• India’s seafood production was recorded at 9 million tonnes in 2012-13 and due to rapid changes in shrimp and fish farming, production capacities for modern feed has gradually gone up to 2.88 million tonnes during 2013-14.
• India has around 26 aqua feed mills spread across the country. However, their production capacities are only 43.4 per cent with a total production of 1.25 million tonnes.
• To meet the requirement, India imports more than half of the requirements from other countries, so there is huge scope in aqua feed.
• With the introduction of vannamei shrimp, the cultured shrimp production is growing at 16 per cent.
• The demand from shrimp will drive the growth of the aqua feed industry at five to six per cent annually.
• The feed demand only from shrimp and fresh water shrimp is around 1 million tonnes.

Competitors:

COMPANY NAME	LAST PRICE	Traiiling P.E	52 WK  HIGH	52 WK  LOW	MARKET CAP
Avanti Feeds	3260.50	22	3450.00	1500.00	2,961.53

Technical Snap short:

Technically prices for the last ten months has been oscilating in a narrow band with 102 on the up side and 52 on the downside.On twenty-first August 2015 prices broke the upside hurdle and closed above the resistance range  resulting in a cup and handle formation. A fibannoci line sketched between recent high and low are projecting a  target  of 191 in the near term. Moreover technical indicators like RSI and MACD  has already given a bullish cross over. Traders with  a short to medium term can accumulate the stock at cmp 150 and on dips up to 132 for the projected target .of 191 or even more