India is a major consumer of fertiliser, but despite high demand, it relies significantly on imports, increasing both import costs and the subsidy load. Chemical fertiliser prices have more than doubled in the previous two years due to geopolitical limitations. This placed an additional burden on the Indian government.
To combat this, the government started promoting the 3:1 mixture of Single super phosphate (SSP) and urea in order to promote its use among farmers.
In order to improve local fertiliser production and decrease dependence on imports, the Niti Aayog created a task group to do so. As a consequence, SSP use grew from 44.88 lakh tonnes in 2020–21 to 56.81 lakh tonnes in 2021–22.
According to the Ministry of Chemicals & FertilisersThe domestic output of SSP climbed to 53.51 lakh tonnes in 2021–2022 from 49.16 lakh tonnes the year before.
Additionally, there is likely to be a great demand in the future, which will be advantageous for SSP manufacturing firms.
Here are two multibagger companies that are major producers of SSP in India.
Madhya Bharat Agro Products Ltd:
Madhya Bharat Agro Products Ltd was incorporated in 1997. The company is engaged in the manufacturing of fertiliser and chemical products such as Single super phosphate(SSP) and the production of Beneficiated Rock Phosphate.
The company’s shares were trading at Rs 643 apiece on Friday’s trading session and it is a small-cap company with a market capitalization of Rs 2,813 crore.
In the previous year, the company’s share price increased from Rs 303.33 to current levels, giving multibagger returns of 112.28 percent. Therefore, if an investor purchased 1 lakh shares of the company in the previous year, their holdings would now be worth 2.12 lakhs!
As per company financials, operating revenues significantly increased by 100 percent from Rs 491 crores during FY 21-22 to Rs 982 crores in FY 22-23. Similarly,Net profit has significantly increased by 117 percent, from Rs 57 crores to Rs 124 crores.
Bharat Agri Fert & Realty Ltd:
Bharat Agri Fert & Realty Ltd was incorporated in 1958, Company is engaged in the business of Manufacturing Fertilisers and Operating Resorts. The company manufactures single super phosphate, sulphuric acid, and alum.
The company’s shares were trading at Rs 116.60 apiece on Friday’s trading session up 2.87 percent from the previous close price and it is a small-cap company with a market capitalization of Rs 616 crore.
In the previous year, the company’s share price increased from Rs 43.57 to current levels, giving multibagger returns of 167.62 percent. Therefore, if an investor purchased 1 lakh shares of the company in the previous year, their holdings would now be worth 2.67 lakhs!
Based on company financials, operating revenues significantly increased by 26 percent from Rs 23 crores during FY 21-22 to Rs 29 crores in FY 22-23. And Net losses have significantly increased by 1700 percent, from Rs 0.5 crores to a loss of Rs 8 crores.
Written by Omkar C
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.
