Fertiliser shares in focus; Deepak, Chambal Fertiliser hit new high

RCF, Nagarjuna Fertilisers, Chambal Fertilisers and Deepak Fertilisers gained more than 4% each

Shares of fertilizers companies were in focus, rallied by up to 15% on BSE in intra-day deal, in otherwise subdued market.
 

Rashtriya Chemicals and Fertilizer (RCF), Nagarjuna Fertilisers, Chambal Fertilisers, Deepak Fertilisers & Petrochemicals Corporation and Fertilizers and Chemicals Travancore (FACT) were up more than 4% each. On comparison, the S&P BSE Sensex was trading flat at 32,594 at 9:56 am.

Of these stocks, Deepak Fertilisers & Petrochemicals Corporation and Chambal Fertilisers were trading at their respective record high, while RCF quoting at 52-week high on the BSE.

Nearly two lakh point-of-sale (POS) machines have been installed across the country for the roll out of the direct benefit transfer (DBT) for fertiliser subsidies by March 31, 2018, Minister of State for Fertiliser Mansukh L Mandaviya said in the Lok Sabha during Question Hour.

The minister also added that the sale of all subsidised fertilisers to farmers or buyers will be made through the PoP devices installed at each retailer shop and the beneficiaries will be identified through documents like Aadhaar card, Kisan credit card and the voter identity, a PTI report suggests. CLICK HERE TO READ FULL REPORT.

According to CARE Rating, the introduction of Direct Transfers Benefit in the Fertilizer Industry has been a boon to the fertilizer sector. Under the DBT scheme the subsidy will be released to the fertilizer companies instead of the beneficiaries, after the sale is made by the retailers to the beneficiaries.

Now under the proposed new system, payment of subsidy is to be based on weekly settlement of claims from actual sales data captured on POS machines after the sale is made by the retailers to the beneficiaries on submission of claims generated in the web-based online Integrated Fertilizer Monitoring System (iFMS) by fertilizer companies. The DBT scheme should help crub the issues relating to diversion and smuggling of urea, the rating agency said in recent report.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
R C F	97.60	88.10	10.8
NAGARJUNA FERT.	15.25	13.87	10.0
CHAMBAL FERT.	142.55	134.80	5.8
BHARAT AGRI	94.00	89.10	5.5
F A C T	40.80	39.00	4.6
RAMA PHOSPHATES	100.00	96.00	4.2
SHIVA GLOBAL	85.00	82.00	3.7
BASANT AGRO TECH	8.70	8.40	3.6
S P I C	27.00	26.15	3.3
MANGALORE CHEM.	70.50	68.35	3.2
NATL.FERTILIZER	71.05	69.20	2.7
MADRAS FERT.	21.80	21.25	2.6
G S F C	138.70	135.35	2.5
ZUARI GLOBAL	135.40	132.30	2.3
G N F C	303.35	296.65	2.3
DEEPAK FERT.	373.00	364.95	2.2
DHARAMSI MORARJI	120.50	118.00	2.1
COROMANDEL INTER	451.80	446.45	1.2
ZUARI AGRO CHEM.	377.00	373.00	1.1