Fertiliser stks prey to subsidy withdrawal risk, high input costs: Analysts

Fertiliser Stocks: The risk of a breach of the government's fiscal deficit target could play a spoilsport for the sector as it could prompt the Centre to cut back on subsidy support, analysts believe

Investors lapped up shares of fertiliser companies earlier this year, as expectations of a good monsoon and the government’s subsidy support drove the bullish sentiment on the bourses.

Shares of Mangalore Chemicals, Madras Fertilizers, Gujarat Narmada Valley Fertilizers, Coromandel International, Agro Phos India, Deepak Fertilizers, and Gujarat State Fertilizers surged 8-37 per cent between January-June, as compared to a 10 per cent fall in the Sensex and Nifty.

After firms reportedly hiked prices of unregulated non-urea fertilizers in April due to rising global prices, the government had increased subsidy on these fertilisers to Rs 60,939 crore till September, up 45