The GST Council will meet on Saturday, June 22, 2024, with a focus on granting relief to industries facing retroactive GST demands due to earlier tax uncertainties. They may also discuss exempting fertilizers after considering a request from the fertilizer sector.
According to a report from CNBC TV18, the GST Council may request the Group of Ministers (GoM) on Rate Rationalization to consider the fertilizer sector fertilizer sector to exempt them from GST.
The fitment committee appointed by the council has suggested that the Group of Ministers (GoM) on rate rationalization should decide whether fertilizers should be exempted from the current 5% GST rate, as reported.
Initially, in 2017, when the Goods and Services Tax (GST) was introduced, fertilizers were categorized under the 12% GST tax slab. However, following requests from several states, the GST Council subsequently lowered the tax rate on fertilizers from 12% to 5%.
Following today’s news, fertilizer stocks surged during Wednesday’s trading session. Here are a few fertilizer stocks that are poised to benefit from this development.
Khaitan Chemicals & Fertilizers Ltd
Khaitan Chemicals & Fertilizers Ltd is a manufacture of Single Super Phosphate (Fertilizer), Sulphuric Acid and other chemicals.
During Wednesday’s trading session, the company’s shares soared 17% to reach an intraday high of ₹79.95 per share. The company currently holds a market capitalization of ₹754 crores.
Gujarat State Fertilizers & Chemicls Ltd
Gujarat State Fertilizers & Chemicals Ltd is a public sector company promoted by the Government of Gujarat. It is engaged in manufacturing of various fertilizers and industrial products like plastics & synthetic rubbers and man-made fibers.
During Wednesday’s trading session, the company’s shares rose by 7% to reach an intraday high of ₹250 per share. The company currently boasts a market capitalization of ₹9,683 crores.
Deepak Fertilizers & Petrochemicals Corp Ltd
Deepak Fertilisers and Petrochemicals Corporation Ltd is in the business of fertlisers, agri services, bulk chemicals, mining chemicals and real estate.
During Wednesday’s trading session, the company’s shares rose by 7% to reach an intraday high of ₹663 per share. The company has a market capitalization of ₹8,180 crores.
Chambal Fertilisers & Chemicals Ltd
Chambal Fertilisers & Chemicals Ltd is engaged in production of Urea from its own manufacturing plants. It also markets/ deals in other fertilisers and agri-inputs. It also has a Joint Venture for manufacture of Phospohric Acid in Morocco.
In Wednesday’s trading session, the company’s shares surged by 8.5% to achieve an intraday peak of ₹475.40 per share. The company’s market capitalization stands at ₹18,914 crores.
Paradeep Phosphates Ltd
Paradeep Phosphates Limited is a manufacturer of non-urea fertilizers and India’s second-largest private sector phosphatic company. The company is engaged in manufacturing, trading, distribution, and sales of a variety of complex fertilizers such as DAP, three grades of Nitrogen-Phosphorus-Potassium.
In Wednesday’s trading session, the company’s shares surged by 5.4% to achieve an intraday peak of ₹80.45 per share. The company’s market capitalization stands at ₹6,517 crores.
National Fertilizer Ltd
National Fertilizers Limited is engaged in production and marketing of Neem Coated Urea, Bio-Fertilizers (solid & liquid) and other allied Industrial products. It is also engaged in trading of Imported and Domestic Fertilizers, Compost, Seeds and other Agro products.
In Wednesday’s trading session, the company’s shares surged by 9% to achieve an intraday peak of ₹131.25 per share. The company’s market capitalization stands at ₹6,279 crores.
Fertilisers And Chemicals Travancore Ltd
The company is engaged in the manufacturing and selling of fertilizers, its by-products and Caprolactam. It is under the administrative control of the Department of Fertilizers, Ministry of Chemicals & Fertilizers.
In Wednesday’s trading session, the company’s shares surged by 9% to achieve an intraday peak of ₹942.50 per share. The company’s market capitalization stands at ₹59,423 crores.
Written by Omkar Chitnis
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