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National Fertilizers gains after getting LoI for establishing plant

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National Fertilizers rose 1.09% to Rs 78.90 at 9:39 on after the company said it received letter of intent from Satish Dhawan Space Centre, Sriharikota for establishing di-nitrogen tetroxide production plant.

The announcement was made after market hours yesterday, 17 April 2017.

Meanwhile, the S&P Sensex was up 241.95 points, or 0.82% to 29,655.61.

On the BSE, 64,000 shares were traded in the counter so far, compared with average daily volumes of 4.01 lakh shares in the past one quarter. The stock had hit a high of Rs 79.90 and a low of Rs 78.60 so far during the day.

The stock hit a 52-week high of Rs 80.95 on 31 March 2017. The stock hit a 52-week low of Rs 29.25 on 2 May 2016.

The stock had outperformed the market over the past one month till 17 April 2017, rising 11.72% compared with 0.79% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 66.63% as against Sensex's 8% rise.

The mid-cap company has equity capital of Rs 490.58 crore. Face value per share is Rs 10.

National Fertilizers (NFL) said that it has received letter of intent (LOI) from SDSC-SHAR (Satish Dhawan Space Centre, Sriharikota) for establishing Di-Nitrogen Tetroxide (N2O4) production plant (NPP) on build, Own, operate & supply model. The project is to be set-up on build, own, operate & supply (BOOS) model at NFL Vijaipur, Guna, Madhya Pradesh. The plant capacity shall be around 1,095 metric tonnes (MT) N2O4 per annum.

The product (N2O4) shall be exclusively supplied to SDSC-SHAR under long term agreement for 25 years period. The project activities (zero date) shall start around July 2017 with a gestation period of 18 months. The estimated capex requirement shall be around Rs 350 crore.

Net profit of National Fertilizer declined 43.4% to Rs 73.24 crore on 7.9% rise in net sales to Rs 2524.04 crore in Q3 December 2016 over Q3 December 2015.

National Fertilizers is the 2nd largest producer of Urea in the country with a total share of 15.5% and largest Urea producer amongst public sector Urea producing companies.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 18 2017. 09:41 IST