India's Avanti Feeds hits 2-1/2-yr low on weak demand outlook

Godrej Agrovet

22/11/2022 09:22

** India's integrated sea food co Avanti Feeds  AVNT.NS 
fall as much as 5.7% to 375 rupees, their lowest since May 20
    ** Shares down over 11% so far this week after co last week
flagged that the contraction in shrimp exports was likely to
continue due to weak demand in the U.S., Europe and COVID-19
lockdowns in China
    ** Shrimp production and exports are expected to fall, and a
lot of farmers are expected to go on a crop holiday till 2023,
AVNT executives said in a conference call with analysts on
Friday
    ** Feed sales in fiscal year ending March were expected to
be more or less unchanged from a year ago, co said
    ** Co has limited choice to increase feed price as and when
input costs increase - it added
    ** It is also in discussions with officials in southern
state of Andhra Pradesh which has enforced price restrictions on
aqua feeds
    ** Earlier this month, agri co Godrej Agrovet  GODE.NS 
flagged margin hit due to price controls.
    ** About 1 mln shares change hands vs 30-day avg of 248,602
shares
    ** AVNT shares down ~30% YTD, as of last close
 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))