Avanti Feeds, Apex Frozen, Zeal Aqua shares rallied up to 12% today; what's ahead?

Shares of shrimp exporters such as Avanti Feeds Ltd, Apex Frozen Foods Ltd and Zeal Aqua Ltd climbed up to 12 per cent in Friday's trade. The three stocks have been in news following the recent Budget announcements.

Avanti Feeds surged 12.27 per cent to hit a high of Rs 750 on BSE. Zeal Aqua climbed 4.93 per cent to Rs 15.74, while Apex Frozen Foods advanced 4.15 per cent to Rs 283.70. Shares of Zeal Aqua have rallied 38 per cent in the past one month. Apex Frozen shares are up 24 per cent, while the Avanti Feeds stock is up 20.34 per cent during the same period.  

The Indian seafood exports touched an all time high 17,81,602 mt worth of Rs 60,000 crore in FY23-24. Frozen shrimp continues to be the major export item, and the demand is expected to grow, supporting the expansion of shrimp farming operation.

"The fisheries sector is recognised as a sunrise sector and the  government aims to have 55 lakh jobs generated via government initiatives. The recent budgetary allocation underscores the governments commitment towards developing this sector," Avanti Feeds said in a presentation on Thursday.

Financial support measures like Nucleus breeding centres for shrimp brood stock are seen lowering the reliance on the imported broodstock and, thus, bringing down the cost of hatchery business and having better quality seed, Avanti said.

"To enhance the production capabilities and infrastructure NABARD will cover 80 per cent project cost of the aquaculture farmers with an interest subvention of upto 3 per cent," Avanti Feeds said.

Avanti Feeds said the government is committed to boosting the aquaculture sector with its financial measures announced in the Union Budget 2024-25, thus indicating strong growth for the aquaculture Industry for the next few years.