Gaurav Garg, Capital Via Global, says that the fertilizer stocks have seen a good correction in the last few weeks due to profit-making. Let us tell you that some stocks in this sector had reached life time highs in anticipation of a good monsoon.
Fertilizer stocks have seen a strong rally in the last 12 months. All the top stocks in this sector touched a 52-week high on the expectation of a good monsoon. But in the recent times, there has been a good correction in them, which can be an opportunity for these stocks to re-entry.
Moneycontrol has identified 8 such fertilizer stocks. Those who have doubled the wealth of investors in the last 12 months. But recently these stocks have seen a decline of 10-40 per cent from their 52 week high. In this analysis, we have included those companies whose market cap is more than Rs 500 crore.
If we look at the reasons for the recent fall in fertilizer stocks, then the biggest reason for this has been that till now there was a strong rally in these stocks. Now investors are collecting some profits and keeping them in their pockets. Apart from this, some major Chinese fertilizer companies have said that they will stop their exports for a few days to maintain the supply of fertilizer in their domestic market. Apart from this, imports have come down due to rising international prices of fertilizers, which has led to a healthy correction in the country’s fertilizer stocks.
Let’s take a look at these stocks
Rama Phosphates has given a return of 435 percent in the last 1 year. The stock was at Rs 57 on 17 September 2020. Whereas on September 17, 2021, this stock was showing at 303. The stock is looking down 40 per cent from its 52 week high of Rs 505.
Southern Petrochemical
In the last 1 year, this stock has given a return of 169 percent. The stock was at Rs 20 on 17 September 2020. Whereas on 17 September 2021, this stock was showing at 53. The stock is looking down 23 per cent from its 52 week high of Rs 68.45.
The Fertilisers And Chemicals Travancore
In the last 1 year, this stock has given a return of 164 percent. The stock was at Rs 123 on 17 September 2020. Whereas on 17 September 2021, this stock was showing at 46. The stock is looking down 20 per cent from its 52 week high of Rs 153.
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Deepak Fertilisers
This stock has given a return of 159% in the last one year. The stock was at Rs 165 on 17 September 2020. Whereas on 17 September 2021, this stock was showing at 427. The stock is looking down 13 per cent from its 52 week high of Rs 462.6.
Nagarjuna Fertilizers and Chemicals
In the last 1 year, this stock has given a return of 158 percent. The stock was at Rs 4 on 17 September 2020. Whereas on September 17, 2021, this stock was showing at 11. The stock is looking down 46 per cent from its 52 week high of Rs 20.67.
Mangalore Chemicals & Fertilizers
In the last 1 year, this stock has given a return of 128 percent. The stock was at Rs 32 on 17 September 2020. Whereas on 17 September 2021, this stock was showing at 74. The stock is looking down 27 per cent from its 52 week high of Rs 101.
Chambal Fertilisers and Chemicals
This stock has given a return of 105% in the last 1 year. The stock was at Rs 153 on 17 September 2020. Whereas on 17 September 2021, this stock was showing at 313. The stock is looking down 10 per cent from its 52 week high of Rs 348.4.
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