Stellar rally! This small-cap stock zooms 46% in just 6 sessions on market optimism. More upside on cards?

Maintaining their upward run for the fourth consecutive trading session, shares of Avanti Feeds — which manufactures and sells shrimp feed and exports processed shrimp — jumped another 3% in Wednesday's trade, April 16, hitting an intraday high of ₹876 apiece.

With today’s rise, the stock has gained 46% from its April 7 low of ₹601 — all within just six trading sessions. The rally has also lifted the stock’s year-to-date gain to 28%, following a 62.3% rise in FY24 and 9% in FY23.

What is driving Avanti Feeds' stock price higher?

The stellar rally in Avanti Feeds' share price came in response to the U.S. president’s decision to pause a planned 26% reciprocal tariff on Indian exports for 90 days, offering short-term relief to India’s aquaculture industry, which is heavily dependent on exports.

India remains the leading exporter of shrimp to the United States, with exports reaching approximately 240,871 metric tons in 2024 — a 2% increase from 234,209 metric tons in 2023, according to recent estimates. In value terms, India exported shrimp worth $2.7 billion to the U.S. during the 2023–24 fiscal year.

The U.S. continued to be India’s largest export market, accounting for 43% of total shrimp exports in 2024, followed by China and Vietnam at 21% and 7%, respectively, according to S&P Global.

Following Donald Trump’s announcement of a short-term pause in reciprocal tariffs, Indian shrimp exporters are now preparing to ship 40,000 metric tons to the U.S. during the 90-day window, aiming to fulfill existing orders without incurring additional costs, PTI reported.

The temporary reprieve maintains a 10% blanket tariff on all countries, except China, which continues to face a 145% duty. Currently, Indian shrimp exports to the U.S. attract an effective customs duty of 17.7%, including a 5.7% countervailing duty and a 1.8% anti-dumping duty.

Industry sources note that Indian exporters often operate under delivery duty-paid arrangements, meaning previously contracted shipments would have faced significant cost escalations under the proposed higher tariff regime, a PTI report showed.

Aquaculture remains a vital sector of the Indian economy — not only contributing to food security but also providing large-scale employment in coastal regions and generating valuable foreign exchange for the country. The government of India recognized the transformation of shrimp farming as part of the “Blue Revolution” in the late 1980s and early 1990s.

Since then, India’s extensive coastal regions have been increasingly brought under shrimp cultivation, with export volumes of processed shrimp growing year after year. In the Union Budget 2025–26, Finance Minister Nirmala Sitharaman proposed a roadmap for the sustainable growth of India's fisheries sector.

Key measures include reducing customs duties on essential inputs like frozen fish paste and fish hydrolysate, focusing on fisheries development in EEZs and island territories such as the Andaman & Nicobar and Lakshadweep, and raising the loan limit under the interest subvention scheme from ₹3 lakh to ₹5 lakh to improve credit access for farmers and fisherfolk.

Will the stock continue its bull run?

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, "Avanti Feeds has staged a sharp vertical reversal, with the ongoing monthly candle forming a bullish hammer—a sign of capitulation and reversal. If the stock closes in April near the ₹860– ₹880 zone, it would confirm bullish intent and indicate that weak hands are out. A strong monthly close could act as a launchpad for further upside, with the near-term target seen at ₹1050. Bulls now hold the edge, provided strength sustains into the monthly close."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.