Shrimp Stocks Surge In Trade Amid Easing US-India Relations

Shrimp stocks such as Avanti Feeds, Waterbase and Apex Frozen Foods 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.

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.

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.

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.