Avanti Feeds

1. The current support provided by the Govt of India to Shrimp exporters to US (major market for Avanti) is above the acceptable limit of subsidy allowed by the US Govt and hence there would definitely be a negative impact post the final judgement due in Jan 2024; significant since 2024 happens to be election year in the US
2. Elections in India also in 2024 would benefit the small farmers at the expense of corporates like Avanti. Prices of raw material can be expected to remain high with high MSP announcements ahead of the elections…
3. On top the capacity expansion done by Avanti in the last year would ensure that the operating margins cant improve for few more quarters to come…

Give these three points i suspect the share price may consolidate for another quarter or so. lets see…