Fertiliser stocks are going very strong today morning, with the top gainers on the BSE being mainly led by this sector.
National Fertiliser, Deepak Fertiliser, RCF, GSFC, GNFC, Coromandel International and Zuari Agro are all up in the green and doing very well, with ‘buy’ outstripping ‘sell.’
Seasonally, this is the best time for the sector and that apart, the positive outlook reports put out by various rating agencies and analysts has really buoyed the stock prices.
Apart from the seasonal factor, the Govt clearing the subsidy backlog is being viewed as very good news as it will now free up money with these companies to deploy it further into meeting working capital needs.
Also fertiliser demand is likely to remain healthy in view of the Union government's focus to increase farmer income and the sector companies' moderate capex plans.
India Rating in its report said that the sector during April to Feb’21 saw a 10% (YoY) rise in sales, led by higher availability of funds with farmers due to the various policy measures in the wake of the COVID-19 pandemic, higher sowing and acreage, early arrival of monsoon and better labour availability owing to labour migration to rural areas.