Fertiliser shares hit 52-week highs; GNFC zooms 30% in two days

GNFC, RCF, GSFC, Chambal Fertilisers, FACT, Madras Fertilizers and National Fertilizers were up over 5% each.

Shares of fertilizer companies were in focus with most stocks trading at their 52-week highs as these companies are looking to benefit from higher demand on the back of above normal monsoon this year.

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Rashtriya Chemicals and Fertilizers (RCF), Gujarat State Fertilizers & Chemicals (GSFC), Chambal Fertilisers & Chemicals, Deepak Fertilisers, Fertilizers and Chemicals Travancore (FACT), Madras Fertilizers, National Fertilizers, Mangalore Chemicals were up more than 5% each on the Bombay Stock Exchange (BSE).

The S&P BSE Sensex was up 0.84% or 226 points at 26,966 at 09:55 AM.

GNFC has rallied 18% to Rs 177 on the BSE in intra-day trade on back of heavy volumes. The stock zoomed 30% in past two trading sessions from Rs 136 on Tuesday.

The trading volumes on the counter jumped four-fold with a combined 3.31 million equity shares representing 2% of total equity of GNFC changed hands on the BSE and NSE so far.

Since April 25, the stock nearly doubled from Rs 92, after the company posted a net profit of Rs 99 crore in Q4FY16 against a net loss of Rs 326 crore in the same quarter last fiscal.

The company attributed the strong performance due to highest ever production of ammonia, urea, ANP, CNA, formic acid and TDI as also the highest ever sales records in WNA, ANP, CNA, AN(Melt) and Technical Grade Urea.