Shrimp Stocks: Why did Apex Frozen and Avanti Feeds shares jump up to 20% today?

Synopsis: Shrimp exporters Apex Frozen & Avanti Feeds rallied as investors bet on improving trade dynamics, stronger European demand, and potential tariff relief from ongoing India-US negotiations, boosting earnings visibility despite sector headwinds.

Shrimp stocks made a stunning comeback on Wednesday as investors bet on improving trade listdynamics. Apex Frozen Foods surged 20% while Avanti Feeds climbed 4% amid heavy trading activity. The rally comes as companies navigate US tariff challenges while expanding into European markets. The BSE Sensex remained flat, declining 0.14%, but shrimp exporters defied the broader market trend.

Stock Performance

Apex Frozen Foods hit upper circuit of Rs. 315.40 during intraday trading on Wednesday, marking a 20% surge. The stock closed at Rs. 295.10, maintaining strong gains. On the other hand, Avanti Feeds climbed to Rs. 863.95, gaining 4.3% in intraday trade.

Heavy trading volumes signal renewed investor confidence in the shrimp export sector. Both companies saw significant buying interest despite sluggish market conditions.

Why are shrimp stocks up?

The European Union market delivered impressive results for Indian shrimp exporters in Q2FY26. Sales to the EU, excluding the UK, grew 18% year-on-year. Quarter-on-quarter growth stood at 21% during the September 2025 quarter.

Non-US business now accounts for 56% of total sales for these companies. This shift reduces dependence on the American market significantly. US sales declined during Q2FY26, pushing exporters to diversify their geographical presence.

Additionally, Apex Foods expressed optimism about the ongoing India-US trade deal discussions. Management expects positive outcomes from these negotiations during their November 17 earnings call. The company also anticipates quick resolution of India-EU FDA approval processes.

Trade Negotiations

The reciprocal tariff situation between India and the US shows signs of stabilization. Both nations are making tangible progress in long-awaited trade negotiations. Discussions focus on tariff structures and oil imports primarily.

Avanti Feeds highlighted that the US recently proposed reducing tariffs on certain food items. Dairy products and several food categories could see tariffs drop to zero. The company believes the aquaculture sector will benefit from similar tariff balancing measures.

India-US trade talks could significantly improve export opportunities for shrimp companies. Management teams remain hopeful about accessing the US market with reduced barriers. These developments could restore growth momentum in American markets.

Industry Outlook

CareEdge Ratings projects a 10-12% decline in India’s shrimp exports due to US tariff headwinds. However, diversification into other geographies partially cushions this impact. Frontloaded shipments during early fiscal months also provide some relief.

Operating margins are likely to moderate by 150 basis points, particularly in FY27. Value-added shrimp products offer a silver lining for margin protection. These products surged 27% year-on-year globally and 78% in non-US markets during H1FY26.

Recent RBI relief measures should ease liquidity pressures for exporters in the near term. Temporary moratoriums and extended export credit tenures provide crucial support. CareEdge emphasizes that India must accelerate bilateral trade agreements for realizing full export potential.

Written By Fazal Ul Vahab C H

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