NEW YORK (TheStreet) -- Shares of Amira Nature Foods Ltd. (ANFI) are higher by 17.60% to $15.30 in after-hours trading on Monday after the company reported a 33% increase in revenue to $186.6 million for the 2014 fourth quarter, compared to $140.2 million for the same quarter in 2013.
The company, which is a provider of packaged Indian specialty rice, posted a 45.5% increase in adjusted EBITDA to $26.4 million, versus $18.1 million from the 2013 fourth quarter.
Amira Nature Foods' earnings per share was 47 cents for the most recent quarter, compared to 24 cents from the year ago period.
The company also reported its full year 2014 financial results which showed a 32.3% increase in revenue to $547.3 million, compared to $413.7 million from full year 2013. Adjusted EBITDA rose 44% to $75.5 million this year, compared to $52.4 million last year. Basic and diluted earnings per share for 2014 were $1.40, versus 63 cents for full year 2013. Separately, TheStreet Ratings team rates AMIRA NATURE FOODS LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate AMIRA NATURE FOODS LTD (ANFI) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 25.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 81.81% and other important driving factors, this stock has surged by 67.80% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although ANFI had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The gross profit margin for AMIRA NATURE FOODS LTD is rather low; currently it is at 20.39%. Regardless of ANFI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.98% trails the industry average.
- The debt-to-equity ratio of 1.18 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.46, which clearly demonstrates the inability to cover short-term cash needs.
- You can view the full analysis from the report here: ANFI Ratings Report
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