(Reuters) - India's Chambal Fertilisers and Chemicals Ltd reported a near 26% slump in quarterly profit on Tuesday after a weak demand due to erratic monsoon led to a pile-up of unsold stock.
The overall trend in the fertiliser space remains bullish, with stocks like Chambal Fertilizers & Chemicals, Aries Agro and National Fertilizers indicating strong upside ahead
Barring, Chambal Fertilizers & Chemicals, which has shed 19 per cent on YTD basis, most of the other fertilizers stock have logged gains so far in 2022. Deepak Fertilisers has zoomed 148 per cent.
Major stocks have broken out on upside, any trigger in Budget 2022 could see sharp up move
The derivative analyst from HDFC Securities recommends buying December 400 Call and selling 430 Call based on the following four rationales.
NOCIL has been trading in a symmetrical triangle pattern on the daily time frame
ICICI Securities does not expect the reduction in prices to have a major impact on the balance sheet of fertiliser companies
Edelweiss Securities expects earnings momentum in the sector is likely to accelerate in Q3FY21 driven by good start to Rabi along with a healthy cash flow position of farmers
Going into the year 2021, however, experts say returns may moderate in the new year. However, select stocks still offer a good upside over the next one year, charts show
These companies reported an increase in revenue and/or profit before tax for the March quarter
Fertiliser sales surged by almost 98 per cent year on year in May 2020, according to government data
Chambal Fertilisers & Chemicals standalone net profit rises 11.12% in the September 2017 quarter