Fertiliser stocks in India gain on good monsoon rains

Kochi: While the better-than-expected rains across the country following the onset of the southwest monsoon have raised concerns among the public, experts view it as a positive sign for the economy, potentially boosting foodgrain stocks and benefiting fertiliser companies.

As per the estimates of the Central Agricultural Ministry, the ‘kharif’ (monsoon) crop of foodgrains will touch a record quantity of 1663.1 lakh metric tonnes this year. Adequate rain and an increase in the minimum support price for agricultural produce motivated farmers to increase the area of cultivation, resulting in a rise in demand for fertilisers. Moreover, the government decision to reduce the import of fertilisers under the Atmanirbhar Bharat programme also comes as good news for the companies.

This favourable condition for fertiliser firms has attracted investors, leading to a rise in share prices of even public sector undertakings. The biggest demand is witnessed for eight large companies having turnovers of over ₹1,000 crore, including Kerala-based FACT. 

The other firms are Kothari Industrial Corporation, Mangalore Chemicals and Fertilizers, Paradeep Phosphates, Rashtriya Chemicals and Fertilizers, National Fertilizers, Coromandel International and Madras Fertilizers. The share prices of all these companies increased by an average of 30 per cent over the last three months.

Kothari Industrial Corporation
Share price rose by 150 per cent, from ₹146 to ₹396. The highest price in 52 weeks was recorded on May 30- ₹426.7.

Mangalore Chemicals
The increase was 101 per cent, from ₹141 to ₹269. The highest price in 52 weeks, ₹301, was recorded on June 3.

Paradeep Phosphates
A 90 per cent rise in share price was witnessed, going up to ₹157 from ₹92. The highest price in 52 weeks, ₹184, was recorded on June 3.

FACT
Share price rose from ₹631 to ₹970, which was a jump of 63 per cent. The 52-week high was recorded on June 21, 2024, when the price touched ₹1,187.

Rashtriya Chemicals
The stock price went up 34 per cent, from ₹120 to ₹157. The highest price in 52 weeks was recorded on July 23, 2024 – ₹245.

National Fertilizers
The increase was 30 per cent, from ₹80 to ₹101. The highest price in 52 weeks, ₹170, was recorded on July 23, 2024.

Coromandel International
The stock price rose by 35 per cent, from ₹1,748 to ₹2,432. The share recorded a 52-week high on May 2 when it touched ₹2548.

Madras fertilizers
A 30 per cent increase in stock price was witnessed. While each share of this company was priced at ₹74 three months ago, it has now risen to ₹93. The highest price in 52 weeks was recorded on June 12, 2024, at ₹134.