Shrimp Stocks Surge as US-India Relations Improve

Shrimp stocks such as Avanti Feeds, Apex Frozen Foods, and Waterbase are surging in trade on Thursday amid news reports of India closing in on a tariff reduction deal with the United States.

The shares of Avanti Feeds are trading at Rs 728, which accounts for gains of more than 5%. This compares to the previous closing price of Rs 691. The stock has gained over 25% in the last 12 months.

Impact of Tariff Reduction on Shrimp Stocks

Similarly, Apex Frozen Food is trading at Rs 252, representing gains of more than 9% while Waterbase is gaining more than 5%.

The upward momentum in these shrimp stocks comes against the backdrop of improving ties between the United States and India, especially after Donald Trump’s post confirming talks with Prime Minister Narendra Modi.

Recent media reports suggest India is closing in on reaching a deal with the US that would allow Donald Trump to reduce tariffs on Indian exports to 15-16%.

If the reported deal trims US tariffs to 15–16% from 50%, it would be a major sentiment and earnings tailwind for shrimp companies, which rely heavily on US markets in terms of revenue.

Revenue Breakdown of Shrimp Companies

In FY25, Avanti Feeds derived 60% of its revenue from US markets, while the number stands at around 53% for Apex Frozen during the same period.

The high tariffs announced by the Trump administration, therefore, served as a significant blow to these companies. But if the tariffs get slashed to manageable levels, it could go a long way in narrowing the competitive gap and potentially unlocking more volumes.

Industry Sentiment and Future Outlook

As a result, there is strong sentiment emerging from the shrimp industry, which, along with the textiles, was two of the hardest hit industries from Trump’s tariff tantrum.

With the potential tariff reduction, shrimp companies are likely to see an increase in demand and revenue, which could lead to higher stock prices and better returns for investors.

However, it’s essential for investors to keep a close eye on the developments and adjust their investment strategies accordingly. They can also consider diversifying their portfolio to minimize risks and maximize returns.

In addition, investors can stay up-to-date with the latest news and trends in the Indian stock market by following reputable sources and financial news websites.

Conclusion

In conclusion, the surge in shrimp stocks is a positive development for investors and the Indian stock market. With the potential tariff reduction, shrimp companies are likely to see an increase in demand and revenue, which could lead to higher stock prices and better returns for investors.

However, it’s essential for investors to remain cautious and keep a close eye on the developments. By staying informed and adjusting their investment strategies accordingly, investors can navigate the Indian stock market with confidence and achieve their financial goals.