Aquaculture And Infrastructure Company Smartly Avoids US Tariff Impact, Shifts Focus To Europe, Japan, And India, And Builds A New Factory In Tuticorin
With a PE ratio of 23.9x, the company trades at a discount compared to the industry PE of 33.9x. The company has ROCE of 17.6 per cent and ROE of 16.55 per cent.
Kings Infra Ventures Limited is strategically positioned to counter the impact of new US tariffs on Indian seafood exports. The US has announced a 26 per cent tariff on all Indian products, including seafood, which could disrupt global trade. However, Kings Infra is largely unaffected as it has no shipments currently in transit to the US, and the US market accounted for only 4.3 per cent of its total turnover last year. The company had strategically deferred major US market entry to gain clarity on tariffs. Kings Infra is focusing on strengthening its presence in the European and Japanese markets, leveraging its strong business relationships. The company is also targeting the Indian domestic market by promoting its high-quality, high-protein ready-to-eat and ready-to-cook products, Kings Bento and Kings Frigo. A new IQF factory is being set up in Tuticorin to support this initiative. Kings Infra continues to invest in sustainable aquaculture practices and innovative projects like the Kings Maritech Eco Park, ensuring long-term growth and resilience against geopolitical trade fluctuations.
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Kings Infra Ltd, established in 1987, operates in the aquaculture and infrastructure sectors. The company manages aquaculture farms in Tuticorin, Tamil Nadu, covering the entire value chain from brood stock to packaging and marketing. Its product portfolio includes frozen seafood such as octopus, cuttlefish, and shrimp. The company has two main divisions: the Infrastructure Division, which focuses on creating infrastructure for various sectors, and the Aquaculture Division, which processes seafood products to meet global standards. Kings Infra's brand, Kings Frigo, offers premium frozen products targeting metropolitan areas. The company exports to the USA, European Union, Japan, China, and other markets, with 60 per cent of its revenue from aquaculture operations and 30 per cent from seafood exports. Domestically, it derives 70 per cent of its revenue. The Kings Maritech Eco Park, an eco-friendly mariculture tech park, is under construction and will enhance productivity significantly. Kings Infra plans to invest Rs 170 crore in this project and expand its aquaculture farms by 150 acres.
As of April 7, 2025, the current stock price of Kings Infra Ventures Limited is Rs 119.45. The 52-Week High is Rs 192.05, and the 52-Week Low is Rs 120.35. The stock is trading near its 52-week low. Market Capitalisation: Rs 318 crore; 1-Year Return: -32.67 per cent; 3-Year Return: 68.22 per cent; Price-Earnings (PE) Ratio: 26.35; Major public shareholders include Sushil Lahoti with 1.63 per cent, Sameera Chandra with 1.49 per cent, Sucheta Sarvadaman Nakul with 1.04 per cent, Resource Vincom Private Limited with 1.02 per cent, and Rajesh Kumar Jhunjhunwala with 1.01 per cent.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 33.43 crore, reflecting a YoY growth of 46.56 per cent compared to Rs 22.81 crore in December 2023. The operating profit stood at Rs 6.74 crore, marking a 134.84 per cent increase from Rs 2.87 crore in the same quarter last year. The profit after tax (PAT) grew by 164.86 per cent to Rs 3.92 crore from Rs 1.48 crore in December 2023.
In FY24, the company posted a revenue of Rs 90.41 crore, registering a 48.60 per cent growth compared to Rs 60.84 crore in FY23. The net profit for the year stood at Rs 7.77 crore, up 34.20 per cent from Rs 5.79 crore in the previous financial year.
With a PE ratio of 23.9x, the company trades at a discount compared to the industry PE of 33.9x. The company has ROCE of 17.6 per cent and ROE of 16.55 per cent.
Investors must keep this micro-cap stock on their radar.
Disclaimer: The article is for informational purposes only and not a recommendation to buy or sell any stock. Please consult your financial advisor before making any investment decisions.