Equity Alert: Fertiliser cos surge on new potash, phosphate policy

[K.Karthik Raja]

Equity Alert: Fertiliser cos surge on new potash, phosphate policy
Thursday, Jun 26
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Shares of fertiliser companies surged 5-13% after
government approved new potash and phosphate pricing policy .
Deepak Fertilisers & Petrochemicals surged 12% to 99 rupees while
Chambal Fertilisers rose 7% to 82 rupees.
Gujarat State Fertilisers was up over 6% 164 rupees.
Government said the new pricing policy will fix the base price for
17
potash and phosphate fertilisers.
Government also said the new policy would be for long term and
will not be decided on annual basis.
The policy is still not clear about the import parity prices on
potash
and phosphate fertilisers. There are still some positives for the
companies as the policy will be fixed for long term and base prices
will be revised based on import prices.
The new policy will benefit complex fertiliser makers like Chambal
Fertilisers & Chemicals, Deepak Fertilisers & Petrochemicals.

B.Karthick,
Research Analyst