Finance Minister Nirmala Sitharaman presented her 7th Union Budget and her first under the Modi 3.0 government today, on Tuesday, July 23rd. The budget for 2024-25 is seen as the roadmap for the Modi 3.0 government’s strategy towards India’s development path over the next five years.
The following stocks in the agriculture and fisheries sectors experienced fluctuations following the budget announcement, which promised substantial financial support:
Agriculture Sector
The Budget set out 9 priorities for the coming year, with one focusing on improving productivity and resilience in agriculture. The Finance Minister disclosed an allocation of Rs 2.66 lakh crore for rural development.
Sitharaman stated that the government will conduct a thorough review of research to create seeds that can withstand climate challenges.
Additionally, the Finance Minister revealed plans to introduce 109 new high-yielding and climate-resilient varieties of 32 field and cultivation crops for farmers in the current financial year. An amount of Rs 1.52 lakh crore is allocated for the agriculture and related sectors.
The government will also collaborate with states to enhance digital public infrastructure for agriculture. Over the next 2 years, one crore farmers will be introduced to natural farming practices, as announced.
Following are a few agriculture stocks that witnessed a rise in share prices after the allocation announcement:
Mangalam Seeds Limited
With a market cap of Rs. 302 crore, the shares of a sustainable agriculture company surged by 10.8 percent on BSE to hit an intraday high at Rs. 275 in the trading session of Tuesday, as against its previous closing price of Rs. 248.05.
The stock has delivered positive returns of around 27.3 percent in the last one year as well as nearly 21 percent returns year-to-date.
Mangalam Seeds Limited is engaged in the business of production, processing and marketing of high-quality seeds with specialisation in forage crops, with a wide range of field crops and vegetable crops.
The company’s expertise is in the supply of high potential, versatile & disease, pest and drought tolerant hybrid seeds which are adaptable to different agro-climatic conditions.
Kaveri Seed Company Limited
With a market cap of Rs. 5,224.4 crore, the shares of one of the leading seed manufacturers in India surged by 13.6 percent on BSE to hit a new 52-week high at Rs. 1,099.95 in the trading session of Tuesday, as against its previous closing price of Rs. 968.55.
The stock has delivered positive returns of around 78.5 percent in the last one year as well as nearly 56.3 percent returns year-to-date.
Incorporated in 2006, Kaveri Seeds Company Ltd (KSCL) is engaged in research, production, processing and marketing of various high-quality hybrid seeds.
The company has experience in seed production of major agricultural crops backed by a very strong in-house R&D program for a variety of crops including maize, cotton, sunflower, bajra, rice and several vegetable crops.
Agri-Tech (India) Limited
With a market cap of Rs. 138.2 crore, the stock hit a 20% upper circuit on BSE to Rs. 232.6 in the trading session of Tuesday, as against its previous closing price of Rs. 193.85.
The stock has delivered multibagger returns of around 103 percent in the last one year and nearly 17.3 percent of positive returns year-to-date.
Incorporated in 1993, Agri-Tech (India) Limited is engaged in the business of corporate farming and is in the production of horticulture crops. The majority of the company’s farms are situated in various villages of Paithan Taluka, Dist Aurangabad (MS).
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Fisheries Sector
Finance Minister Nirmala Sitharaman announced initiatives for shrimp farming, emphasising financial support for setting up nucleus breeding centres aimed at enhancing production and exports.
She further highlighted that the central government will facilitate financing and marketing for shrimp farming through the National Bank for Agriculture and Rural Development (NABARD).
India is one of the biggest exporters of cultured shrimp, and the country’s shrimp farming sector has received backing from international bodies such as the World Bank, Food and Agriculture Organization, and Asian Development Bank, underscoring its status as a leading exporter of cultured shrimp.
Here are some fisheries stocks that saw an increase in their share prices following the allocation announcement:
Coastal Corporation Limited
With a market cap of Rs. 376 crore, the shares of a company among the top ten players in the Shrimp processing and distribution industry worldwide surged by 7.5 percent on BSE to hit an intraday high at Rs. 297.55 in the trading session of Tuesday, as against its previous closing price of Rs. 276.65.
The stock has delivered positive returns of around 12.5 percent in the last one year but nearly 1 percent of negative returns year-to-date.
Established as Coastal Trawlers Private Limited in 1981, Coastal Corporation Limited is engaged in the processing and exporting of an extensive range of sea foods across the highly consuming markets of the USA, Europe, Canada, Saudi Arabia, Hong Kong, Korea and China.
Avanti Feeds Limited
With a market cap of Rs. 8,606.6 crore, the shares of the leading manufacturer of Shrimp Feed surged by 8.6 percent on BSE to hit an intraday high at Rs. 669.95 in the trading session of Tuesday, as against its previous closing price of Rs. 616.65.
The stock has delivered positive returns of around 60 percent in the last one year as well as nearly 43.8 percent returns year-to-date.
Avanti Feeds Limited is engaged in the manufacturing of prawn, shrimp, and fish feeds. The company’s operating segments include shrimp feed, shrimp hatchery and power generation.
Zeal Aqua Limited
With a market cap of Rs. 175.6 crore, the stock surged by 10 percent on BSE to hit an intraday high at Rs. 13.99 in the trading session of Tuesday, as against its previous closing price of Rs. 12.72.
The stock has delivered multibagger returns of around 110 percent in the last one year and nearly 70 percent of positive returns year-to-date.
Zeal Aqua Limited is engaged in the aquaculture industry, especially prawn farming and trading of seed, feed and medicines required for Shrimp Farming.
Written by Shivani Singh
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