NEW YORK (TheStreet) -- Shares of Amira Nature Foods LTD (ANFI) are up 1.15% to $15.00 in early trading on Thursday after Jefferies (JEF) raised its price target to $16.00 from $15.00, and maintained its "hold" rating.
"Notably, Amira Nature Foods suggested it is not getting any push back from retailers with respect to pricing, and is even pricing ahead of input cost inflation; the company has not seen any slowing in consumer demand, including India from macro weakness," Jefferies said in this morning's research note.
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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