Amira Nature Foods Ltd. (ANFI) Stock | New Retail Distribution Agreement


Amira Nature Foods Ltd. (NASDAQ: ANFI)


Amira Nature Foods Ltd. (ANFI), an Indian specialty rice product company on Tuesday announced a new distribution agreement with Shaws Supermarkets Inc. The agreement allows for Amira products to be sold in Shaw’s stores.


Amira Nature Foods Ltd. Chairman’s Comments

“We are excited to announce the availability of the Amira branded products at Shaw’s,” said Karan A. Chanana, Chairman of Amira Nature Foods Ltd. “Our sales and marketing teams are making tremendous strides with major retailers across the United States, and we are happy to add to our presence one of the nation’s oldest grocery chains.”


ANFI Technical Analysis


ANFI gapped up in price yesterday to $6.61, up from the prior day’s close of $5.14, which is a 29% increase on the favorable news. Taking a look at the daily chart, we can see the last time ANFI traded above this price level was on October 6th, when it closed at $6.66. Taking a further look back on the chart, we can see that ANFI had a big decline back in the middle of July when the stock was trading at $14.15. A month later, the stock tanked all the way to its 52 week low price of $2.51, an 82 % drop.  Since the big drop, ANFI has gradually been trying to recoup the losses. ANFI does have a low float of 16.21 million shares and was trading over 2 times the normal daily trading volume. ANFI did reach pre market highs of $7.00, but gave back $0.39 at the open , or equivalent to 6%. For trading purposes, my entry point would have been $6.70 looking for a run through $7.00. My stop loss would have been $6.50, fearing anything below that and the stock would start to fill in the gap up.


Company Profile

Amira Nature Foods Ltd. (ANFI), incorporated on February 20, 2012, is a provider of packaged Indian specialty rice and other related rice based products. The Company’s products include snacks, ready-to-heat meals, organic product offerings, wheat, barley and legumes. ANFI sells Basmati rice, a long-grain variety of rice grown only in certain regions of the Indian sub-continent, under the brand name Amira. Amira branded products are sold in more than 40 countries by global retailers such as Bharti, Big Bazaar, Carrefour, Costco, easyday, Jetro Restaurant Depot, Lulu’s, Metro Cash & Carry, Morrison’s, Panda, Smart & Final, Spencer’s and Tesco. In emerging markets, its products are sold by global retailers and regional supermarkets such as the modern trade and privately-owned independent stores.

The Company’s Indian business consists of sales under the Amira brand name through over 200 distributors that sell products to both traditional and modern retailers, as well as foodservice customers. Its international business consists of the sale of Amira branded, third party branded and institutional products in more than 60 countries. ANFI accesses these international markets through a combination of regional offices, in-country distribution and global retailer relationships, and consists of sales to both developed and emerging markets. The Company operates a fully-automated and integrated processing and milling facility that is strategically located in the vicinity of the key Basmati rice paddy producing regions of northern India. The facility spans a covered area of approximately 310,000 square feet, with a processing capacity of approximately 24 metric tons of paddy per hour. ANFI sells its products to Asia Pacific, Europe, Middle East, North Africa and North American regions.  Reuters