SSKI Research is bullish on Advanta and has maintained an outperformer rating on the stock.
SSKI Research report on Advanta:
We recently met Advanta management and the team in-charge of SUNSAT Project (Healthy Sunflower Oil project - Brand Name NUTRISUN) to get an update on the project. NUTRISUN is well placed to leverage the trend of shifting towards healthy cooking oils that is gaining momentum globally. NUTRISUN's high oleic and high stearic composition is unique and it will enable it penetrate the entire gamut of oil applications including frying and baking as compared to "frying only" restriction for all other competing healthy oil products. Further NUTRISUN's non-GM status further reinforces its competitive advantage. Advanta management estimates that NUTRISUN can potentially reach peak sales of ~800,000 tonnes over the next 5-6 years which may translate into potential peak revenues of $700-800m. We are working on defining the sales and profitability potential of NUTRISUN oil opportunity. We believe given its very strong growth outlook and unique presence in the Indian agri-inputs space and embedded value of NUTRISUN opportunity, Advanta continues to be attractive at current valuations. We maintain our Outperformer call on the stock.
