Chart check: How fertiliser stocks are faring ahead of Q3 nos, Budget 2021

Edelweiss Securities expects earnings momentum in the sector is likely to accelerate in Q3FY21 driven by good start to Rabi along with a healthy cash flow position of farmers

Shares of fertiliser companies have been on fire since the start of calendar year 2020 as the agri-economy shouldered the burden of lifting the Covid-19 pandemic-hit economy. In CY20, shares of Coromandel International, FACT, Chambal Fertilisers, and Mangalore Fertilisers were up between 42 per cent and 53 per cent on the BSE. In comparison, the S&P BSE Sensex advanced 16 per cent, while S&P BSE MidCap index surged 20 per cent.

Meanwhile, in the past one month, Mangalore Chemicals and Fertilisers, FACT, Chambal Fertilisers, GSFC, and Madras Fertilisers have gained up to 31 per cent on the National Stock Exchange.