The shares of this small-cap stock engaged in the business of producing and marketing Neem Coated Urea, Bio-Fertilizers, and other allied Industrial products came into focus after the Board approved an 18 percent equity stake in a joint venture proposed by the Department of Fertilizers.
Stock Performance
With a market capitalization of Rs 4,302.37 crore, National Fertilizers Ltd surged up to 2 percent in Thursday’s trading session and made an intraday high of Rs 88.15 per share compared to its previous closing price of Rs 86.65 per share. The stock retraced and was trading at Rs 87.70 which is 1 percent higher than the previous closing price.
What Happened
The Board of Directors of National Fertilizers Limited (NFL) has agreed to become a part of the Joint Venture Company proposed by the Department of Fertilizers. As per the agreement, NFL will hold an 18 percent equity for setting up a brand new Ammonia-Urea Complex Namrup IV Fertilizer Plant at Namrup, Assam.The estimated timeline for the acquisition, mechanical completion, and commissioning of the Project is 48 months from the start date.
Company Overview
National Fertilizers Limited (NFL) produces and markets neem-coated urea, bio-fertilizers, and industrial products like ammonia, nitric acid, and ammonium nitrate. It operates across various sectors like fertilizers, agrochemicals, seeds, and industrial goods. The company also trades imported and domestic fertilizers, compost, and agro products.
Financial Performance
In the latest quarter, National Fertilizers Ltd reported a 23 percent YoY decrease in revenue from Rs 7,584 crore to Rs 5,856 crore. On a quarterly basis, the revenue went up by 33 percent from Rs 4,390 crore in Q2 FY25. Their net profits saw a 70 percent YoY decrease from Rs 151 crore to Rs 46 crore. However the profits rose 280 percent QoQ from Rs 12 crore in the previous quarter.
Industry Outlook
India’s fertilizer industry is projected to reach Rs 1.38 lakh crore by 2032, growing at a 4.2 percent CAGR from 2024 to 2032. Fertilizer production in FY24 reached 45.2 million tonnes, driven by government initiatives. As the world’s second-largest producer of fruits and vegetables, India aims for urea self-sufficiency by FY27 through increased nano urea production.
Written by Shwetha Sairam
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