Trump Reciprocal Tariffs: Apex Frozen Foods, Avanti Feeds share prices slump up to 19%. Do you own?

Shares of Avanti Feeds and Apex Frozen Foods declined by 7% and 19%, respectively, in Thursday's trading session following US President Donald Trump's announcement of reciprocal tariffs on multiple countries, including India. These companies are notably heavily reliant on exports to the US, with a large portion of their revenues coming from the American market.

During his speech last night, Trump presented a chart detailing the tariff rates the US will impose on various nations. In relation to India, the chart indicated that the country imposed a 52% tariff on US goods, citing "currency manipulation and trade barriers," and the US would now apply "discounted reciprocal tariffs" of 26% on India.

US Market Accounts for 40% of Exports

The US is the largest market, accounting for $2.4 billion of the $5.6 billion worth of shrimp exported from India. Indian shrimp represent 40% of the market share in the US. 

According to a report by CNBC TV18, Avanti Feeds generated 69% of its total revenue from the North American market in the December quarter, a decrease from 82% in the same quarter the previous year. In its investor presentation for the December quarter, Apex Frozen Foods revealed that 52% of its total revenue was derived from the United States.

In a recent note, InCred Equities mentioned that the newly imposed 45% tariff (which includes Anti-Dumping Duty, Countervailing Duty, and tariffs initiated by Trump) will significantly increase the cost of Indian shrimp in the US, potentially leading to a halt in supplies. Competing nations such as Ecuador, Vietnam, and Indonesia will not gain any advantages, resulting in a cessation of shrimp exports to the US.

Indian shrimp exporters will begin to explore other markets, such as China, Europe, and the Middle East, to compensate for the downturn in the US market, it said. Supermarkets in the US are likely to run out of supplies within the next 24 hours, which will prompt a reevaluation of food prices. These prices cannot remain once the supermarkets deplete their inventories, as per InCred.

The tariff components include an Anti-Dumping Duty (ADD) of approximately 2% - 4%, a Countervailing Duty (CVD) of about 5.8%, a universal baseline tariff of 10%, and a reciprocal tariff of 26%, totaling 45%.

Technical Views

Avanti Feeds share price today opened at ₹851 apiece on the BSE. The stock touched an intraday high of ₹880 and an intraday low of ₹720 per share. 

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One stated that Avanti Feeds share price today is under tremendous pressure, down around 18%. “This weakness is likely to extend in the near term, and bottom fishing should be avoided. The next key support for the stock is at 200 SMA, placed around 670, whereas any bounce may face resistance around 780, which is 50 DEMA,” Bhosale said.

Apex Frozen Foods share price today opened at ₹211 apiece on the BSE, and the stock touched an intraday low of ₹199.25 per share and an intraday high of ₹211.75 apiece. 

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, explained that the Apex Frozen share price, after a bear market rally, has returned to its basing lows of the 180-200 zone. However, this marks the fourth test of the base, and typically, a fourth retest weakens support, increasing the likelihood of a breakdown, he added.

“There is no visible buying interest from institutions, and volumes have dried up, signaling a lack of accumulation. Given these factors, we expect the 180-200 zone to be breached in the coming weeks, potentially leading to further downside pressure. Traders should exercise caution as a breakdown could accelerate selling momentum,” Jain said.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.