Wednesday, January 27, 2010



The weekly chart suggest an upside in the stock with a possible 1st target of 45 and a 2nd target of 54 with a stop loss of 31 (for traders).

The change in Govt Policy towards the Fertilizer Industry by giving Capital Subsidy and allowing additonal Urea Plants against its earlier complex fertilizer policy, makes Fertilizer stocks an attractive buy both as a trader as well as an investor.

According to FITCH the Indian Govt will drive the fertilizer sector to ensure food security so as to reduce burden on subsidy as crude looks weak in the medium term. They see a moderation in DEBT profile of all fertilizer coes.

NAGARJUNA FERTILIZERS & CHEMICALS LTD is the Largest Urea producer in South India. It has got 1.55 mmscmd of natural gas from Reliance via KG Basin 6 so as to enable it to shift from naptha to natural gas, thereby reducing its costing by 20% and increasing its OPM from 14% to 22%.

Besides this it is partnership with TATA PETRODYNE in refinery business and associated with International Companies in marketing of MICRO NUTRIENTS & SPECIALITY FERTILIZERS. Add to that is the revenue it will start getting from its subsidary NOCL at Cuddalore.

Projected EPS for FY10E is 1.70 and FY11E is 3.3 making its P/E at 20 & 10 respectively.

Happy Trading.

No comments:

Post a Comment  Universal Currency Converter ®
Convert this amount
of this type of currency
into this type of currency.

enter any amount

scroll down to see more currencies

scroll down to see more currencies
Universal Currency Converter under license from Terms of Use

About Me


All opinions are based on my technical study; however, I do not vouch for the accuracy or the completeness of the matter. I am not liable for any potential damages that may be incurred while acting upon any information mentioned in this report. The views expressed are not of binding nature. The report is intended for a restricted audience & I am not soliciting any action based on it. Please exercise discretion and due diligence in making your decisions. Investments in Capital Markets are not my obligation or guarantee and are subject to investment risks. In no event will I be liable for any damages, including without limitation direct or indirect, special, incidental or consequential damages, losses or expenses arising in connection with this report or use thereof or inability to use by any party, or in connection with any failure of performance, error, omission, interruption, defect, delay in operation even if I am thereof, advised of the possibility of such damages, losses or expenses.