This shrimp exporter stock surged 22% in March; check key triggers behind the rise

The stock performed better than the broader markets in January and February as well. In January, the share price increased 3.8%, while the NIFTY50 was down 0.6% for the period. Later, in February, the stock lost around 2.1%, while the benchmark index corrected by almost 6%.

In today’s trading session, Avanti Feeds rallied as much as 5.5% to hit a fresh 52-week high of ₹842.95 apiece on the NSE. However, the stock pared some of its early gains to trade 3.3% higher at ₹825 apiece on the NSE at 1:15 pm.

Foray into the pet food business

On March 5, Avanti Feeds also announced its foray into the new pet food segment. The company said that its subsidiary, Avanti Pet Care Pvt. Ltd, has marked its entry into India’s pet food segment by launching its cat food brand ‘Avant Frust’ in Hyderabad. This was seen as a major expansion beyond the company’s core aquaculture business.

To recall, Avanti Pet Care was established in July 2023 to specialise in the manufacturing and trading of pet food and pet care products.

Positive announcement in Union Budget 2025

Avanti Feeds shares got a boost after Finance Minister Nirmala Sitharaman announced measures to support India’s fisheries sector in her Union Budget 2025 speech on February 1.

The Finance Minister announced an enabling framework for sustainable fishing in the country’s exclusive economic zone (EEZ), with a focus on the Andaman and Lakshadweep regions. She said this was done to unlock the untapped potential of India’s marine sector.

The announcement was a major positive for Avanti Feeds and other aqua export stocks. Avanti Feeds is an integrated seafood company in India that operates across the entire aquaculture value chain, from shrimp feed manufacturing and hatchery operations to shrimp processing and export.

Major block deal

Last week, Avanti Feeds was on traders’ radar after Thailand-based Thai Union Asia Investment Holding Ltd divested a 4.4% stake in the company for ₹435 crore through an open market transaction. The shares were disposed of at an average price of ₹728 apiece.

It was reported in the next trading session that IIFL Facilities Services Ltd had acquired 59.77 lakh shares, or 4.39%, of Avanti Feeds at ₹728 per share from the Thai Union Group.

Positive Q3 results

The share price of Avanti Feeds also benefitted from the strong earnings reported by the company for the December 2024 quarter last month. Its net profit surged 69% year-on-year to ₹141 crore for Q3FY25, while revenue from operations rose 9% YoY to ₹1,365.77 crore.

The strong profit growth was mainly due to higher margins and improved operational efficiencies. Margins rose to 11.7% in Q3FY25 compared to 7.7% in Q3FY24.