Agri related stocks rally;Chambal Fertilisers, Shakti Pumps hit 52-wk highs
Madras Fertilizers, FACT, RCF, Escorts, Shakti Pumps, Chambal Fertilisers and Roto Pumps were up 3% to 8% on the BSE.
 "Agri related stocks rally;Chambal Fertilisers, Shakti Pumps hit 52-wk highs")
premium
Shares of agriculture-related stocks were in focus with Chambal Fertilisers & Chemicals, Escorts and Shakti Pumps (India) hitting their respective 52-week highs on expectations of a government thrust to drive sector.
Madras Fertilizers, Fertilizers & Chemicals Travancore (FACT), Rashtriya Chemicals & Fertilisers (RCF), Chambal Fertilisers & Chemicals and Deepak Fertilisers & Petrochemicals from fertilizers, Shakti Pumps (India) and Roto Pumps from pumps manufacturer and Escorts from the tractors were up in the range of 3% to 8% on the BSE. On comparison, the S&P BSE Sensex was up 0.44% at 34,252 at 10:06 am.
“Given government’s intent to double farm incomes, we expect agri input players to report strong growth in FY19, especially after this year’s Kharif season hit by Goods and Services Tax (GST). In irrigation, higher funds allocation by government will support growth. Falling subsidy and direct benefit transfer (DBT) implementation brighten prospects of fertiliser companies,” analysts at Edelweiss Securities said in result preview.
Meanwhile, early predictions by various weather forecasting agencies indicate normal Southwest monsoon this year. Skymet expects monsoon this year to be 100% of the long period average (LPA) with a model error of +/- 5%. The agency also expects that there is no possibility of a nationwide drought or deficient rainfall.
According to Emkay Global Financial Services, Q4FY18 is generally a seasonally weak quarter for the domestic Agrochemicals players.
The inventories are on the lower side, as the companies stayed away from channel filling in March’18. This is expected to result in better volume growth in FY19 due to lower channel inventories and prediction of normal monsoon this year, it added.
Madras Fertilizers, Fertilizers & Chemicals Travancore (FACT), Rashtriya Chemicals & Fertilisers (RCF), Chambal Fertilisers & Chemicals and Deepak Fertilisers & Petrochemicals from fertilizers, Shakti Pumps (India) and Roto Pumps from pumps manufacturer and Escorts from the tractors were up in the range of 3% to 8% on the BSE. On comparison, the S&P BSE Sensex was up 0.44% at 34,252 at 10:06 am.
“Given government’s intent to double farm incomes, we expect agri input players to report strong growth in FY19, especially after this year’s Kharif season hit by Goods and Services Tax (GST). In irrigation, higher funds allocation by government will support growth. Falling subsidy and direct benefit transfer (DBT) implementation brighten prospects of fertiliser companies,” analysts at Edelweiss Securities said in result preview.
Meanwhile, early predictions by various weather forecasting agencies indicate normal Southwest monsoon this year. Skymet expects monsoon this year to be 100% of the long period average (LPA) with a model error of +/- 5%. The agency also expects that there is no possibility of a nationwide drought or deficient rainfall.
According to Emkay Global Financial Services, Q4FY18 is generally a seasonally weak quarter for the domestic Agrochemicals players.
The inventories are on the lower side, as the companies stayed away from channel filling in March’18. This is expected to result in better volume growth in FY19 due to lower channel inventories and prediction of normal monsoon this year, it added.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%