The Hindu Business Line : Some fertiliser stocks see sharp rise

Mumbai, Nov. 5 Prices of certain fertiliser stocks saw a sharp rise on Monday with some of them recording their highest ever prices on Monday. Deepak Fertilisers and Petrochemicals Corporation Ltd increased by 5.56 per cent to Rs 140, which is also their highest quoted price. National Fertilizers Ltd and Fertilizers and Chemicals Travancore Ltd were up immensely, with the former going up by 9.96 per cent and the latter by 19.96 per cent. They now stand at their highest ever recorded prices at Rs 73.45 and Rs 34.25 respectively. Others such as Rashtriya Chemicals and Fertilizers Ltd, Shiva Fertilisers Ltd. and Tuticorin Alkali Chemicals and Fertilisers Ltd also saw an increase in their prices.

There has been an over all re-rating taking place say analysts. Stocks that haven’t been moving in the past, people are taking an interest in them they added. “The comfortability in these stocks have been improving, especially those stocks which were enjoying a low PE rating. Due guidelines by the Government to help the fertiliser sector they have been able to up their performance, and people have taken this up as an opportunity to invest their money in this area,” said a Head of Research with a broking house.

With some stocks reaching their ceiling limits, some stocks saw a fall in prices. Godavari Fertilisers and Chemicals Ltd, Coromandel Fertilisers Ltd, Gujarat Narmada Valley Fertilizers Company Ltd and Gujarat State Fertilizers and Chemicals Ltd all saw a decline in their stock prices, though not a considerable drop.

All in all, analysts who track the fertiliser sector say that investors seem to be getting more interested in these stocks as they see a lot of opportunity here.