The shares of Fertilisers & Chemicals Travancore Ltd gained for the second day in a row. They surged 9.99% on Tuesday’s early trades and were quoting at ₹ 294.00 apiece at 11:15 AM. More than 42 lakh shares changed hands on the National Stock Exchange (NSE).
Fertilisers & Chemicals Travancore Ltd is under the administrative control of the Department of Fertilisers, Ministry of Chemicals & Fertilisers, Government of India. It manufactures and sells fertilisers, their by-products and caprolactam.
Analysts believe that the market is anticipating a subsidy in the forthcoming Union Budget. In addition, Russia recently announced that it has plans to increase taxes or ban exports of Russian exported fertilisers which may impact global prices.
“The government is planning to increase the subsidy on urea which will lead to a healthy outlook for the sector. This will help farmers who are facing supply shortages caused by global factors. Also, Russia will impose an export duty of 23.5 per cent on all types of fertiliser with a “cut-off price” set at $450 per tonne,” said Rahul Sharma, Research Head, Equity99.
In the past month, the stock emerged as one of the top gainers in the sector. It gave multibagger returns of 106.32% as its share price increased from ₹ 142.50 to the current levels. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares one month ago, the value of their holdings would have been ₹ 2.06 lakh today!
The company reported a 296.71 per cent year-on-year growth in net profit at ₹ 144.60 crores in Q2FY23 against ₹ 36.45 crores in the same quarter last year. Its revenue increased by 147.55% to 1935.00 crores as against ₹ 781.65 crores in the corresponding quarter last year.
Written by Simran Bafna
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