 "Fertiliser, agrochemical shares in focus; Zuari Agro up 25% in 2 days")
Shares of fertiliser and agrochemical companies were in focus with UPL, Shivalik Rasayan, Zuari Agro Chemicals, Chambal Fertilisers & Chemicals, Fertilizers & Chemicals Travancore (FACT) and Gujarat State Fertilizers & Chemicals (GSFC) trading at their respective 52-week highs on the BSE.
Zuari Agro Chemicals, Zuari Global, Nagarjuna Fertiliser, Mangalore Chemicals & Fertiliser, Madras Fertilizers, Deepak Fertilizers & Petrochemicals and Chambal Fertilisers & Chemicals from the fertiliser were up between 3% and 5% on the BSE. UPL, PI Industries, Nagarjuna Agrichem and Bhagiradha Chemicals & Industries from the agro chemical sector were up in the range of 1% to 10%.
Zuari Agro Chemicals has moved higher to its 52-week high of Rs 337, up 20% on the BSE in intra-day trade, extending its Wednesday rally on back of heavy volumes.
In past two trading sessions, the stock of Fertiliser Company zoomed 29% from Rs 261 on January 17, 2017.
The trading volumes on the counter jumped more than three-fold with a combined 917,691 equity shares representing 2.2% of total equity of the company changed hands on the NSE and BSE till 12:59 pm.
On December 23, 2016 Coltrane Corporation Limited, one of the promoter had sold 479,750 shares of Zuari Agro Chemicals at Rs 226.50 per share on the BSE. However, Globalware Trading And Holdings Limited, the another promoter, bought 479,750 shares at Rs 226.50 per share on the BSE.
According to Edelweiss Securities, the fertilizers sector was hit by multiple headwinds in past few quarters such as erratic monsoon, raw material availability issues and depreciation of INR.
“We expect reversal of the downturn cycle and recovery in profitability over next 12?18 months, primarily on liquidation of excessive channel inventory and improved capacity utilization,” the brokerage firm said in earning preview.
“India’s agrochemicals sector, riding on its inherent structural drivers and strong entry barriers, is set to grow at a 12% CAGR over FY16-FY19E. Besides, products worth US$ 6.3 billion would go off-patent by 2020, offering an attractive opportunity for generic players,” said Religare Institutional Research in sector update.
While stricter regulations could cap return ratios, we are fundamentally positive on the sector and like Dhanuka Agritech for its improving product mix, UPL for its diversified presence and Rallis India for its improving business traction, added report.
Zuari Agro Chemicals, Zuari Global, Nagarjuna Fertiliser, Mangalore Chemicals & Fertiliser, Madras Fertilizers, Deepak Fertilizers & Petrochemicals and Chambal Fertilisers & Chemicals from the fertiliser were up between 3% and 5% on the BSE. UPL, PI Industries, Nagarjuna Agrichem and Bhagiradha Chemicals & Industries from the agro chemical sector were up in the range of 1% to 10%.
Zuari Agro Chemicals has moved higher to its 52-week high of Rs 337, up 20% on the BSE in intra-day trade, extending its Wednesday rally on back of heavy volumes.
In past two trading sessions, the stock of Fertiliser Company zoomed 29% from Rs 261 on January 17, 2017.
The trading volumes on the counter jumped more than three-fold with a combined 917,691 equity shares representing 2.2% of total equity of the company changed hands on the NSE and BSE till 12:59 pm.
On December 23, 2016 Coltrane Corporation Limited, one of the promoter had sold 479,750 shares of Zuari Agro Chemicals at Rs 226.50 per share on the BSE. However, Globalware Trading And Holdings Limited, the another promoter, bought 479,750 shares at Rs 226.50 per share on the BSE.
According to Edelweiss Securities, the fertilizers sector was hit by multiple headwinds in past few quarters such as erratic monsoon, raw material availability issues and depreciation of INR.
“We expect reversal of the downturn cycle and recovery in profitability over next 12?18 months, primarily on liquidation of excessive channel inventory and improved capacity utilization,” the brokerage firm said in earning preview.
“India’s agrochemicals sector, riding on its inherent structural drivers and strong entry barriers, is set to grow at a 12% CAGR over FY16-FY19E. Besides, products worth US$ 6.3 billion would go off-patent by 2020, offering an attractive opportunity for generic players,” said Religare Institutional Research in sector update.
While stricter regulations could cap return ratios, we are fundamentally positive on the sector and like Dhanuka Agritech for its improving product mix, UPL for its diversified presence and Rallis India for its improving business traction, added report.
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%