Smallcap surges 10% on heavy volumes today, hits over 6-year high; details

Avanti Feeds shares hit an over six-year high of Rs 811.80 today as they rallied 10 per cent on the National Stock Exchange in the intraday trade amid heavy volumes

Avanti Feeds share price hit an over six-year high of Rs 811.80 today, as it rallied 10 per cent on the National Stock Exchange (NSE) in Wednesday's intraday trade, amid heavy volumes. The stock price of the aquaculture company was trading at its highest level since May 2018. It had hit a record high of Rs 1,000 on November 13, 2017.

 

At 10:36 AM, Avanti Feeds share was quoting 9 per cent higher at Rs 809.15 as compared to 0.88 per cent rise in the Nifty 50 index. A combined 3.7 million equity shares have changed hands on the NSE and BSE.  READ: Stock Market Today LIVE

 

 

On Tuesday, March 4, 2025, Thai Union Asia Investment Holding Limited sold 5.98 million equity shares, representing 4.39 per cent of total equity of Avanti Feeds, at a price of Rs 728 per share. IFL Facilities Services Limited bought the same quantity of the company at the same trade price via bulk deals on the NSE, exchange data shows.

 

Avanti Feeds, on February 28, had informed the stock exchanges that a joint letter from Thai Union Asia Investment Holding Limited (TUAIH) and Thai Union Group Public Company Limited (TU), public shareholders of the company, has been received informing it about a proposed internal transfer of 8.77 per cent shareholding, i.e. 11.95 million equity shares of the company held by TUAIH to its holding company, TU, through an intermediary.

 

The aforesaid transfer of shares from TUAIH to TU is an internal transfer within the same group and is proposed to be implemented in one or more tranches, the company had said.  READ: Why Indian stock markets rallied despite Trump's reciprocal tariff threat?

 

"Further, to ensure compliance with Indian foreign exchange laws and Sebi regulations, the transfer from TUAIH to TU is proposed to be implemented with the support of an Indian domestic intermediary namely IIFL Facilities Services Limited which shall acquire the shares from TUAIH and then immediately transfer the same shares to TU," Avanti Feeds had said.

 

Meanwhile, Avanti Feeds shares have outperformed the market, thus far in the calendar year 2025 by surging 20 per cent, on strong earnings. In comparison, the BSE Sensex is down 6 per cent and the BSE Smallcap index has slipped 21 per cent during the same period.

 

In the first nine months (April to December 2024) of the financial year 2024-25 (9MFY25), Avanti Feeds had reported 36 per cent year-on-year (Y-o-Y) jump in profit before tax (PBT) to Rs 526 crore from Rs 386 crore in the corresponding period of the previous year, mainly due to increase in revenue and decrease in raw material costs and better overhead absorption.

 

The total income increased to Rs 4,343 crore from Rs 4,185 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) margins improved to 13.53 per cent from 10.49 per cent.

 

The major raw material prices are fish meal, soya bean meal, and wheat flour. The noticeable development in the December quarter, meanwhile, was softening of two major raw materials that are fish meal and soya bean meal prices resulting in improvement in the profitability. The prices of these raw materials keep fluctuating since their production is based on agriculture and fish catches from the ocean, the company said.  READ: Power Grid Corporation bags new projects, share price rise 3%; details here

 

The management said, overall, the global market for shrimp is expected to be safe and stable in 2025 compared to 2024 with a marginal increase of about 5 per cent anticipated. The focus is on demand for value added products, which is gradually increasing and processes are seeing better margins in value added products.

 

On the fiscal front, the government has allocated Rs 2,704 crore towards the fisheries sector in Budget 2025. This allocation has been higher by 3 per cent than the previous year number. The amount of Rs 2,465 crore , which is designated for the Pradhan Mantri Matsya Sampada Yojana (PMMSY), is a 4.8 per cent increase from the previous year.

 

To enhance competitiveness, the Basic Customs Duty (BCD) on fish hydrolysate has been reduced from 15 per cent to 5 per cent. Additionally, the BCD on frozen fish paste (surimi) has been lowered from 30 per cent to 5 per cent.

 

The government intends to explore and use more seafood from the vast oceans thus tapping potential in untapped islands like Andaman and Nicobar islands. Also, it aims to prevent overfishing thus maintaining a balance between growth and suitability.