INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Avanti Feeds had a gloomy start on Tuesday, tumbling more than 12 per cent
This is over and above the 40 per cent drop since April 26
The company had held an audio conference call for its investors post market hours of Monday
The stock fell 12.83 per cent to Rs 1,298.50
The past 3-4 months have not been exactly going well for the company as shrimp prices have come under pressure
With a sharp drop in prices, shrimp culture too has taken a hit.
The company management has attributed the drop in shrimp prices to a
temporary decline in consumption in the US due to an extended winter
A stable shrimp production in countries like Indonesia and Vietnam has also weighed.
"The decline in price is only a temporary reaction and
the consumption of shrimps in the US has come back to normalcy and the demand started picking up and would be restored to the normal level
soon and even expected to go up, which is expected to trigger increase in prices
The Chinese imports are also expected to go up in months to come," the management said
"Therefore, there is no need to panic about export demand for shrimps from India and its price."
Shares of Avanti Feeds have taken a knock
of 45 per cent since April 26 and 54 per cent after hitting its record high of Rs 3,000 in November 2017.
The management has guided for at
least 10 per cent growth in capacity utilisation in FY19
It expects 60-65 per cent capacity utilisation in processing and export of shrimps
The company says it is confident of maintaining profit before tax (PBT) in feed at 10-15 per cent and 8-10 per cent in shrimp processing and
