India's National Fertilizers posts Q2 profit on lower costs

National Fertilizers

11/11/2024 11:28

Nov 11 (Reuters) - India's National Fertilizers  NAFT.NS  reported a profit in the second quarter on
Monday as lower costs helped cushion the impact of lower product prices.    
    The state-run agricultural chemicals maker reported a consolidated profit of 120.7 million rupees ($1.4
million) for the quarter ended Sept. 30, compared to a loss of 871 million rupees a year ago.
    Revenue fell 22.4% to 43.90 billion rupees, while total expenses declined 24.4% to 44.18 billion rupees. 
    For further highlights, click  urn:newsml:reuters.com:*:nFWN3MI0D7
    
    
KEY CONTEXT
High fertiliser and agricultural chemicals inventory and destocking for the past few quarters pressured
prices, hurting margins of agrochemical makers, analysts said.
    While international agrochemical demand is recovering, with higher sales volume across geographies, ample
supplies from China have also curbed price increases, analysts added.
    Peer UPL  UPLL.NS  on Monday posted a wider quarterly loss hurt by pricing pressures.


PEER COMPARISON
                
                                    Valuation(next   Estimates (next 12   Analysts' sentiment           
                                      12 months)           months)                                      
                        RIC         PE      EV/EBIT  Revenue   Profit     Mean      No of     Stock to  Div
                                            DA       growth    growth     rating*   analysts  price     yield
                                                                                              target**  (%)
 National Fertilizers    NAFT.NS    NULL    NULL       NULL      NULL     Null             0    NULL     0.23
 Ltd                                                                                                    
 Chambal Fertilisers     CHMB.NS     11.08     6.06    NULL      NULL     Hold             2    0.95     1.66
 and Chemicals Ltd                                                                                      
 Deepak Fertilisers      DPFE.NS     20.50     9.73    9.69      35.32    Buy              1    0.92     0.64
 and Petrochemicals                                                                                     
 Corp Ltd                                                                                               
 Coromandel              CORF.NS     26.05    16.69    5.65      14.28    Buy              9    0.96     0.34
 International Ltd                                                                                      
                    
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT

    
JULY-SEPTEMBER STOCK PERFORMANCE
    

        
-- All data from LSEG
-- $1 = 84.3600 rupees    
        
        

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National Fertilizers Sept Qtr 2024 vs Peers    https://tmsnrt.rs/40H2itV
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 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))