Shares of this fertilizer stock under the ‘small-cap’ category jumped approximately 9 percent in Thursday’s trading session after the company announced financial results for Q3FY23-24, i.e., for the quarter ended December 2023.
With a market capitalization of Rs 5,261.45 crores, the stocks of National Fertilizers Limited opened their trading hour on Thursday at Rs 100.80 and currently trade at Rs 107.25, gaining approximately 9 percent as compared to the previous closing levels of Rs 98.90 apiece.
Such bullish stock price movements are observed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for the December 2023 quarter.
Sequentially, the company reported positive movements in both the prime business indicators, viz, operating revenues as well as after-tax profits with the former increasing from Rs 5,660 crores during Q2FY23-24 to Rs 7,581 crores during Q3FY23-24, and the latter, keeping the timeframe the same, shifted from losses of Rs 87 crores to profits of Rs 151 crores.
On a contrasting note, the company, yearly, reported a dip in the abovementioned metrics with the operating revenues shifting down from Rs 10,134 crores during Q3FY22-23 to Rs 7,581 crores during Q3FY23-24, and the after-tax profits, during the same period, dipping from Rs 554 crores to Rs 151 crores.
Historically, the company reported its return ratios at decent numbers during FY22-23 with the return on equity (RoE) reported at 18.03 percent and the return on capital employed (RoCE) at 17.79 percent keeping the time horizon the same.
According to the latest shareholding data for the quarter ended December 2023, the company’s Promoters hold a 74.71 percent stake, Public (retail) investors hold a 15.67 percent stake, and the Foreign Institutional Investors (FIIs) hold a 1.1 percent stake in the company.
National Fertilizers Limited is an India-based company engaged in the business of manufacturing chemicals. The company also provides services of agriculture extension in order to educate farmers on fertilizers and know-how on scientific cultivation methods.
Operating solely within India, the company’s operating segments include own fertilizers, fertilizer trading, etc.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
