Budget 2025: Apex Frozen Foods, Avanti Feeds and other seafood exporter stocks in focus

Seafood exporters' stocks like Avanti Feeds, Apex Frozen Foods, and Waterbase are once again in focus ahead of the Union Budget 2025, as investors expect key announcements for the sector.

Shares of Avanti Feeds and Apex Frozen Foods rose more than 15% and more than 15%, respectively, in December. However, these stocks are trading weak in January amid a fall in broader markets.

The recent surge in stock prices comes amid the recovery in global demand, as demand for shrimp in key markets like the United States and China is rebounding. Besides this, reduced competition from Ecuador, a major seafood exporter, and a fall in prices of key feed ingredients like soymeal and fishmeal have supported prices further.

Shares of seafood product makers and exporters saw hectic buying on Budget Day last year after the government announced various steps for the shrimp and fisheries sector.

As Union Budget 2025 will be presented in the Parliament on February 1, shares of shrimp exporters and seafood producers have caught the attention of investors.

Here is a look at the performance of seafood companies on Budget Day following announcements, such as the 5% import duty cut on shrimp inputs.

How seafood exporter stocks performed after Budget 2024

Apex Frozen Foods shares soared up to 9% on the NSE to hit a high of ₹271.95 after the budget announcements. The stock closed around 3% on that day. Shares of the company rallied around 19% the next day after the Budget proposals, taking the two-day gains to around 23%.

However, the stock has retreated from the 52-week high levels hit on July 25, 2024. Shares have lost around 29% since then to trade at ₹230 per piece on the NSE.

Shares of Avanti Foods also advanced around 9% in intraday trade on July 23, 2024, but closed higher by nearly 5% on the NSE at ₹645.35 apiece. The stock rallied more than 18% on the next day to hit a 52-week high of ₹764.4 apiece on the NSE.

Budget 2024 allocations for shrimp and seafood product makers

India is the second biggest fish producing country. It has around 8% share in global fish production. India also stands second in aquaculture production globally. It is also one of the top shrimp-producing and seafood-exporting nations.

Meanwhile, India’s seafood exports in FY2024-25 so far have surpassed ₹60,000 crore, according to the Finance Ministry. The seafood exports stood at 1.78 million metric tonnes, amounting to ₹60,523.89 crore in FY24.

FM Sitharaman announced a total budgetary allocation of ₹2,616.44 crore for the Department of Fisheries for FY 2024-25 against ₹1,701 crore (Revised Estimate) for FY 2023-24.

To ensure the availability of quality brood for quality seed, the Finance Minister also announced financial support for setting up a network of Nucleus Breeding Centre (NBC) for shrimp brood stocks.

“Basic Customs Duty (BCD) on shrimp broodstock (Litopenaeus vannamei and Black Tiger/ Penaeus monodon) will be reduced from 10% to 5%, on polychaete worms from 30% to 5% and on shrimp and fish feed from 15% to 5%. Further, various inputs like mineral and vitamin premixes, krill meal, fish lipid oil and crude fish oil, algal prime (flour) and algal oil, artemia and artemia cyst have been exempted from customs duties,” the Budget document mentioned.