Feb 13 2024, 07:11
7 fertilizer stocks, 4 with upside potential of more than 21%
On Interim Budget day when the fertilizer subsidy bill was seen as lower than expected, the street reacted negatively. The assumption is that if the fertilizer subsidy is going to come down then it is bad for the sector. Now there is another way to look at it, a government that has been ensuring that agriculture gets the right amount of attention and doing the various policy pushes, then why is the overall projected subsidy bill down? Probably, it may be because the government is expecting that policy actions that it has taken over the years will yield results.
In the case of the fertilizer industry, it started with urea getting coated with neem which was not a financial measure but had a financial impact. Similarly, there were some measures which in the short term impacted some fertilizer companies but over a period, there has been a clean up going in the industry. While it has been slower as compared to other sectors, the clean up and readjustment is happening. Given the policy measures, it would be worth bringing them to watchlist because if a re-rating which has taken place in some companies spreads to others then we could see a sharp move. But one thing which one needs to remember is that in such sectors which are depending on change in government policies, sometimes invested capital can underperform for some time.
As far as the street is concerned, given the sensitive nature of anything which is to do with agriculture, the process of clean up might appear to be slower than what some of the other sectors have seen.
Fertilizer stocks - Upside potential
Feb 12, 2024
Company Name
Latest Avg Score
Reco
Analyst Count
Upside Potential%
Inst Stake%
Market Cap Type
Paradeep Phosphates
7
Strong Buy
2
46.6
27.1
Mid
Market Cap Rs Cr
Company Name
Coromandel International
Latest Avg Score
9
Reco
Buy
Analyst Count
9
Upside Potential%
33.3
Inst Stake %
24.8
Market Cap Type
Large
Market Cap Rs Cr
Company Name
31,950
Deepak Fertilisers & Petrochemicals
Latest Avg Score
9
Reco
Buy
Analyst Count
1
Upside Potential%
29.8
Inst Stake %
15.9
Market Cap Type
Mid
Market Cap Rs Cr
6,506
Company Name
Chambal Fertilisers & Chemicals
Latest Avg Score
9
Reco
Hold
Analyst Count
3
Inst Stake%
Upside Potential%
Market Cap Type
14.3
Mid
21.3
Market Cap Rs Cr
Company Name
15,054
Rashtriya Chemicals & Fertilizers
Latest Avg Score
9
Reco
Analyst Count
Upside Potential%
Inst Stake%
1.7
Market Cap Type
Mid
Market Cap Rs Cr
8,921
Company Name
National Fertilizers
Latest Avg Score
7
Reco
Analyst Count
Upside Potential%
Inst Stake%
6.8
Market Cap Type
Mid
Market Cap Rs Cr
5,247
Company Name
Mangalore Chemicals & Fertilisers
Latest Avg Score
9
Reco
Analyst Count
* Upside Potential%
Inst Stake%
0.0
Market Cap Type
Small
Market Cap Rs Cr
1,531
Calculated from highest price target given by analysts
source:et
Feb 13 2024, 07:52