Water Base and Apex Frozen are still in sideways trend therefore Venky’s and Avanti Feed are more lucrative in this space, say experts
Stock market today: On account of Indian government announcing to import 12 lakh tones of GM soya cake, poultry stocks are rising today. Among the major poultry stocks Venky's, Apex Frozen and Avanti Feeds are seeing strong buying attraction today. Venky's share price today shot up over 8 per cent while Avanti Feeds shares went up more than 5.50 per cent in the intraday trade session. According to stock market experts, some of the poultry stocks may further go northward as this decision is going to dilute the demand-supply constraint in poultry industry company's favour.
Speaking on the reason for rise in poultry stocks today; Ravi Singhal, Vice Chairman at GCL Securities said, "The Government of India (GoI) has announced to import 12 lakh tones of GM soya cake, which is used as feed for the poultry chickens. Since, the import will dilute demand-supply constraint of the poultry chicken feed in industry's favour, poultry stocks are surging today. In fact, the poultry companies were demanding from the Indian government to import GM soya cake as the commodity had become dearer due to the shortage of supply in the market. This DGFT notification has come as a relief for the industry and hence market has gone crazy in regard to the poultry stocks." Asked about the poultry shares that one can buy, Ravi singhal said that one can look at Venky's nut not at current levels. He advised buy on dips in Venky's.
Standing in sync with Ravi Singhal's views; Santosh Meena, Head of Research at Swastika Investmart Ltd said, "Globally we are seeing supply-side issues as well due to flood and flu. The Indian poultry industry is likely to benefit from the ongoing changes in lifestyles and eating habits where organized players may continue to gain market share."
Speaking on Venky's share price outlook; Santosh Meena of Swastika Investmart Ltd said, "Technically, Venky’s is bouncing back from a strong demand zone of ₹2500 to ₹2400 where ₹2900 ₹3000 is an immediate supply zone and if it manages to cross this area then we can expect a strong rally towards ₹4000 level."
Recommending Avanti Feed stocks to buy today; Santosh Meena said, "Avanti Feed is also bouncing back from its 200-DMA and we can expect a move towards ₹600 level while any decisive move above ₹600 level can lead a rally towards ₹680 ₹700 zone."
Santosh Meena went on to add that poultry stocks like Water Base and Apex Frozen are still in sideways trend therefore Venky’s and Avanti Feed are more lucrative in this space.