Venky’s, Avanti Feeds, Apex Frozen, SKM Eggs rally up to 8% after government allows soymeal import

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Shares of poultry and egged related companies surged up to 8% in Wednesday’s trade after the government on Tuesday relaxed norms for import of 12 lakh tonne of genetically modified crushed and de-oiled soya cake, used as livestock feed. The commerce ministry said the move will benefit farmers, poultry farmers and fishermen in a big way.

Shares of Venky’s (India) traded 8.13% higher at Rs 2820.95 at around 1 pm (IST), while the benchmark BSE Sensex was up 0.13% at 56,034. Apex Frozen Foods, Waterbase, Avant Feeds and SKM Egg Products Exports were up 2%, 2% 6% and 7%, respectively, at around the same time.

The relaxation comes after clarification and prior permission from the environment ministry that since soya de-oiled and crushed (DOC) cake does not contain any living modified organism, it has no objection to such imports.

Further, in order to ensure the import quantity of 12 lakh tonne is not breached, strict monitoring will be carried out by the Central Board of Indirect Taxes and Customs (CBIC) through the customs authorities at respective ports, commerce ministry said.

Commenting on the rally, market watcher Santosh Meena, head of research, Swastika Investmart said, “There is no clear trigger for today’s move but DGFT issued a notification to import 12 lakh tonnes of GM soya cake which was demanded by the poultry industry earlier. Globally we are seeing supply-side issues as well due to flood and flu.”

He further added that the Indian poultry industry is likely to benefit from the ongoing changes in lifestyles and eating habits where organised players may continue to gain market share.

“Technically, Venky’s is bouncing back from a strong demand zone of Rs 2,500-2,400 where Rs 2,900-3,000 is an immediate supply zone and if it manages to cross this area then we can expect a strong rally towards Rs 4,000 level,” Meena added.

He further added that Avanti Feeds is also bouncing back from its 200-DMA. “We can expect a move towards Rs 600 while any decisive move above Rs 600 level can lead a rally towards Rs 680-700. Waterbase and Apex Frozen are still in sideways trend therefore Venkys and Avanti feed both are more lucrative in this space,” Meena said.