Avanti Feeds shares price rises 10% after its subsidiary enters the pet food market

Avanti Feeds Shares Surge 10% to 52-Week High as Subsidiary Enters Pet Food Market

Posted on March 5, 2025, by Niftynews

Avanti Feeds shares surged 10% on March 5, 2025, reaching a 52-week high of ₹810, following a significant announcement from its subsidiary, Avanti Pet Care Pvt. Ltd. (APCPL). APCPL made its debut in the growing Indian pet food market with the launch of its cat food brand, “Avant Frust,” in Hyderabad. This expansion into the pet food industry marks a bold strategic move for the company, signaling its intent to diversify beyond its core aquaculture business. The surge in Avanti Feeds shares reflects investor optimism, and analysts are now keenly watching how this new venture unfolds.

Avanti Feeds Shares Surge After Pet Food Market Foray

The most recent Avanti Feeds shares surge is attributed to the company’s entry into the pet food market, with Avanti Pet Care Pvt. Ltd. (APCPL) introducing its cat food brand, “Avant Frust.” The launch took place in Hyderabad, marking a milestone in the company’s ongoing strategy to diversify its business offerings. Investors have reacted positively, sending Avanti Feeds shares to a 52-week high. The Indian pet food market has seen significant growth in recent years, driven by an increasing pet adoption rate, and Avanti’s entry into this space positions the company well to capitalize on these trends.

With the introduction of “Avant Frust,” Avanti Pet Care aims to establish a competitive foothold in a market that is still relatively untapped compared to other sectors. The pet food segment represents a lucrative opportunity, as Indian consumers are becoming more willing to spend on their pets’ health and nutrition, making it a promising vertical for Avanti Feeds shares to continue their positive momentum.

IIFL and Thai Union’s Stock Movements Support Avanti Feeds Shares

In addition to the pet food venture, Avanti Feeds shares saw another boost from key market transactions. IIFL Facilities Services Limited acquired 59.77 lakh shares (approximately 4.39% of the company) at ₹728 per share. In parallel, Thai Union Asia Investment Holding Limited sold an identical stake at the same price in the previous session. These significant trades reflect increased investor interest and confidence in Avanti Feeds shares, further contributing to their surge on March 5.

These transactions also demonstrate that institutional investors are keen on Avanti Feeds’ growth prospects, signaling that the market is bullish on the company’s long-term outlook, especially following its strategic expansion.

Strong Q3 Earnings Propel Avanti Feeds Shares Growth

Another key factor fueling Avanti Feeds shares surge is the company’s strong performance in the third quarter of FY25. Avanti Feeds reported a remarkable 87% year-on-year increase in net profit, reaching ₹135.21 crore. Revenue from operations also grew by 9%, reaching ₹1,365.77 crore. This strong financial performance, which was driven by the robust growth in the shrimp feed segment, has further bolstered investor confidence.

The shrimp feed segment saw a 12% increase in revenue, totaling ₹1,041.63 crore, while revenue from processed shrimp remained stable at ₹321 crore. Although the power segment saw a slight decline, the overall financial results demonstrated the company’s ability to weather market challenges and deliver consistent growth, which in turn positively impacted Avanti Feeds shares.

Union Budget 2025 Support Enhances Market Sentiment

Further contributing to Avanti Feeds shares’ positive performance is the favorable impact of the Union Budget 2025. The Indian government announced several measures to support the country’s fisheries sector, including an enabling framework for sustainable fishing in India’s Exclusive Economic Zone (EEZ). The budget also raised the loan limit under the interest subvention scheme from ₹3 lakh to ₹5 lakh, which is expected to benefit farmers and fisherfolk.

These budgetary measures have significant implications for the Indian fisheries sector, and given Avanti Feeds’ strong presence in the shrimp and aquaculture markets, the company stands to benefit from these initiatives. This has further supported the positive sentiment surrounding Avanti Feeds shares, contributing to their 10% surge on March 5.

Avanti Feeds Shares Continue Positive Growth in FY25

Avanti Feeds shares have continued to perform well throughout FY25, increasing by more than 16% year-to-date despite broader market volatility. As of 2:42 PM on March 5, 2025, Avanti Feeds shares were trading at ₹794, reflecting a 7.34% increase from the previous day’s closing price. This sustained growth indicates that investor confidence in the company’s strategic direction remains strong.

Conclusion: Future Outlook for Avanti Feeds Shares

In conclusion, Avanti Feeds shares have demonstrated exceptional growth, driven by a combination of strong financial results, positive market sentiment, and the company’s strategic expansion into the pet food sector. The company’s move to diversify into the pet food market has opened up new avenues for growth, while the government’s support for the fisheries sector provides further tailwinds.

With its solid earnings and innovative product launches, Avanti Feeds shares are likely to continue their positive performance, offering attractive opportunities for investors looking to capitalize on the company’s growth in the coming quarters.

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