Avanti Feeds, Apex Frozen to gain as shrimp industry eyes revival in 2025

Apex Frozen Foods skyrocketed up to 16.04% to hit an intraday high of Rs 276.35 per share, while Avanti Feeds zoomed as much as 8.97% to hit an intraday high of Rs 653.35 per share

Shrimp stocks in focus: Shrimp stocks sizzled on the last trading day of 2024 (December 31), with Avanti Feeds and Apex Frozen Foods zooming up to 16 per cent in intraday deals on the BSE.

 

Apex Frozen Foods skyrocketed up to 16.04 per cent to hit an intraday high of Rs 276.35 per share, while Avanti Feeds zoomed as much as 8.97 per cent to hit an intraday high of Rs 653.35 per share.

 

The spark for this surge came from a report by domestic brokerage InCred Equities, which painted a picture of resurgence for India’s shrimp sector in the calendar year 2025 (CY25). 

 

 

Recovering global demand, paired with reduced competition from Ecuador, has set the stage for a strong comeback, analysts said. Ecuador, once a fierce competitor, overproduced shrimp under heavy government subsidies, leading to an oversupplied market. 

 

Now grappling with consolidation after subsidies were withdrawn, the South American nation has inadvertently opened the door for India’s rise.

 

Meanwhile, demand for shrimp in key markets like the United States and China is rebounding. As both nations deplete their inventories, India has stepped up, capturing over 40 per cent of US shrimp imports in recent months, signalling its growing dominance in the global market. 

 

Smooth Seas Ahead

 

The stars seem aligned for the Indian shrimp industry. A confluence of factors, including a structural decline in major input costs, is expected to boost profitability. The prices of critical feed ingredients like soymeal and fishmeal have been falling, further easing pressure on production costs. 

 

Analysts also note that India's ability to withstand Ecuador's earlier dominance has positioned it as a resilient and reliable global supplier.

 

Fishmeal, however, remains a double-edged sword. While prices are currently favourable, the long-term reliance on this commodity raises sustainability concerns due to the risk of overfishing. Insect-based meal alternatives are being explored, but until these gain traction, the shrimp industry must navigate this precarious dependency.

 

Soymeal and wheat prices, on the other hand, are expected to witness a sustained decline, providing much-needed relief to producers. Lower feed costs, combined with recovering market dynamics, signal brighter days ahead for the industry.

 

At 1:13 PM, Apex Frozen was trading 13.52 per cent higher at Rs 270.35 per share, while Avanti Feeds share was trading 4.99 per cent higher at Rs 629.45 per share. In comparison, BSE Sensex was trading 0.34 per cent lower at 77,983.16 levels.