Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Amira Nature Foods

(

ANFI

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Amira Nature Foods as such a stock due to the following factors:

  • ANFI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.3 million.
  • ANFI has traded 55,680 shares today.
  • ANFI is trading at 2.30 times the normal volume for the stock at this time of day.
  • ANFI is trading at a new high 3.43% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on ANFI:

Amira Nature Foods Ltd is engaged in processing, distributing, and marketing packaged specialty rice and other food products. ANFI has a PE ratio of 9. Currently there are 3 analysts that rate Amira Nature Foods a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Amira Nature Foods has been 227,700 shares per day over the past 30 days. Amira Nature has a market cap of $372.6 million and is part of the consumer goods sector and food & beverage industry. The stock has a beta of -0.46 and a short float of 27.5% with 10.60 days to cover. Shares are down 9.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Amira Nature Foods as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 12.2%. Since the same quarter one year prior, revenues rose by 21.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • AMIRA NATURE FOODS LTD has improved earnings per share by 6.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AMIRA NATURE FOODS LTD increased its bottom line by earning $1.41 versus $1.05 in the prior year. This year, the market expects an improvement in earnings ($1.71 versus $1.41).
  • The gross profit margin for AMIRA NATURE FOODS LTD is rather low; currently it is at 17.19%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 6.22% is above that of the industry average.
  • The debt-to-equity ratio of 1.10 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, ANFI has a quick ratio of 0.66, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

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