fertiliser stocks: Fertiliser stocks may get a re-rating wit

fertiliser stocks: Fertiliser stocks may get a re-rating with price hikes a possibility


Fertiliser stocks may get a re-rating with price hikes a possibility
Expectations of a normal monsoon for the third consecutive year could boost demand for complex fertilisers. Companies in the segment could pass on the increase in higher input costs to maintain margins, said analysts.
Synopsis
Early in April, the government told fertiliser companies to roll back the hike in maximum retail price (MRP) of non-urea fertilisers after some firms raised prices. With state elections out of the way, investors are betting that prices will be increased. Shares of Chambal Fertilisers and National Fertilizers rallied over 10 per cent on Wednesday while most of the other fertiliser stocks gained between 5 per cent and 10 per cent.

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