As we approach the budget meeting that is to be held on February 1st, 2023 Indian investors turn more optimistic about the sector’s prospects. The producers are demanding measures such as an import duty hike in technical and formulations which will give a boost to local producers.
Another critical requirement is that fertilizer companies be able to obtain LNG through the Indian Gas Exchange. The exchange was designed to eliminate the need for buyers to contact multiple sellers in order to get a fair price.
As the optimism continues, here are 3 small cap fertilizer stocks that have gained more than 7 percent in the early hours of Tuesday:
National Fertilizers Limited
The shares of National Fertilizers opened at Rs 63.70 and gained more than 7 percent to trade at Rs 67.60 levels in the early hours of Tuesday. In the past six months, the stock has zoomed by more than 44 percent.
National Fertilizers Limited is engaged in the production and marketing of Domestic Fertilizers, Compost, Seeds, and other Agro products. Some of them include Neem Coated Urea, Bio-Fertilizers (solid & liquid), and other allied Industrial products.
The company is yet to announce its Q3. In the Q2 of FY23, it reported a total revenue of Rs 6,756.69 Crore and a net profit of Rs 24.75 Crore. The company has a market capitalization of Rs 3,311 Crore.
Mangalore Chemicals & Fertilizers Limited
The shares of Mangalore Chemicals & Fertilizers opened 7 percent higher at Rs 87.80 levels on Tuesday as against its previous close of Rs 79.85. The stock has been on a downward trend and has shed more than 27 percent in the past six months.
Mangalore Chemicals & Fertilizers Limited is the largest manufacturer of chemical fertilizers in the state of Karnataka. It is a subsidiary of Zuari Fertilisers and Chemicals Limited, an Adventz Group company.
In Q3FY23, the company reported a total revenue of Rs 1,173.24 which grew 54 percent from Rs 761.7 Crore in the same period the year earlier. Their net profit increased by 145 percent which stood at Rs 76.16 Crore compared to Rs 31.07 Crore in Q3FY22. The company has a market capitalization of Rs 1,012 Crore.
Southern Petrochemical Industries Corporation Limited
Southern Petrochemical Industries Corporation saw its share price start the session at Rs 70.60 levels and further gain approximately 6 percent to reach an intraday high of Rs 74.40. In the past six months, the scrip has gained more than 40 percent.
Southern Petrochemical Industries Corporation (SPIC) Limited is one of the leading fertilizer manufacturing companies in the country. The company is capable of producing 6.2 lakh tons of Neem Coated Urea.
The company is yet to announce its Q3. In the Q2 of FY23, it reported a total revenue of Rs 708.06 Crore and a net profit of Rs 106.76 Crore. The company has a market capitalization of Rs 1,501 Crore.
Written by Anoushka Roy
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