Chambal Fertilisers rises after striking deal for purchase of gas

Chambal Fertilisers and Chemicals rose 1.38% to Rs 128.70 at 11:11 IST on BSE after the company said it entered into agreements on 13 June 2017 for purchase of gas from Indian Oil Corporation and GAIL (India).

The announcement was made during trading hours today, 14 June 2017.

Meanwhile, the S&P BSE Sensex was down 8.27 points, or 0.03% to 31,095.22.

On the BSE, 1.24 lakh shares were traded in the counter so far, compared with average daily volumes of 3.32 lakh shares in the past one quarter. The stock had hit a high of Rs 130.55 and a low of Rs 126.55 so far during the day. The stock hit a record high of Rs 138 on 10 May 2017. The stock hit a 52-week low of Rs 53.70 on 17 November 2016.

The stock had underperformed the market over the past one month till 13 June 2017, falling 2.01% compared with 2.58% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 54.53% as against Sensex's 5.80% rise. The scrip had also outperformed the market in past one year, rising 88.91% as against Sensex's 17.84% rise.

The mid-cap company has equity capital of Rs 416.21 crore. Face value per share is Rs 10.

Chambal Fertilisers and Chemicals said initial supply date will occur between 1 April 2018 and 1 July 2019. The gas is being purchased mainly for new urea plant of the company being set up at the existing site at Gadepan in Kota, Rajasthan. However, the gas can also be used at the existing plants of the company at Gadepan in Kota, Rajasthan.

Chambal Fertilisers & Chemicals reported net profit of Rs 27.15 crore in Q4 March 2017 as against net loss of Rs 131.16 crore in Q4 March 2016. Net sales declined 23.63% to Rs 1072.76 crore in Q4 March 2017 over Q4 March 2016.

Chambal Fertilisers & Chemicals is one of the largest private sector fertilizer producers in India.

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