Shrimp Stock Performance Analyzed

Shares of Apex Frozen Foods and Avanti Feeds experienced significant gains on Wednesday, driven by positive expectations for the shrimp export market. These gains highlight investor interest in companies involved in this specific industry. Trading volumes were notably high, indicating strong demand.

Key Points

• Apex Frozen Foods jumped 15%, reaching ₹303.45.
• Avanti Feeds rose 4%, hitting ₹863.60.
• US sales slowed, EU sales are growing strongly.
• India-US trade talks offer potential tariff relief.
• EU FDA conclusions expected soon, boosting confidence.
• Margins might decrease, but value-added products help.

The surge in Apex Frozen Foods’ stock price occurred alongside a 20-fold increase in trading volume. This suggests increased investor confidence after the company stated their optimism regarding the ongoing India-US trade deal negotiations. These negotiations are crucial for reducing tariffs and improving export opportunities.

A key factor driving the positive outlook is the strong growth in the European Union market, particularly outside the United Kingdom. Sales in the EU have increased by 18% year-over-year and 21% quarter-over-quarter. This demonstrates that companies are successfully diversifying their export markets, reducing their reliance on the US.

Avanti Feeds’ stock increase comes as the company reports that the US is proposing to significantly reduce tariffs on food items, dairy products, and other goods. This proactive approach signals potential long-term benefits for the aquaculture sector.

CareEdge Ratings predicts a moderate 10-12% growth in India’s shrimp exports, partially offset by US tariffs. However, increased sales of value-added shrimp products and supportive RBI measures are expected to mitigate these challenges. The ratings agency recommends accelerating bilateral trade agreements and building a more resilient supply chain.

“To realise its full potential, India must accelerate bilateral trade agreements, move beyond reactive export strategies and design a resilient, demand-driven, and geopolitically balanced supply chain for shrimp exports,” – Priti Agarwal, Senior Director, CareEdge Ratings.