Ajay Parmar

Head of insititutional equities,

Emkay Global Financial Services

WE are bullish on the fertiliser sector. In its recent forecasts, the meteorological department has predicted normal rainfall this year. Last year, even when monsoon was supposed to be below normal, fertiliser stocks fared well. This year, we expect the counter to see good buying interest. The government changed the fertiliser pricing policy recently. This has led to an increase in urea prices. In the past, most of the cost of fertiliser was borne by the government itself, but it has now passed this on to the farmers. As the demand for fertiliser has remained constant, we don’t see any major impact on the demand side. We expect fertiliser stocks to outperform the broader market in the near future. At present, stocks of fertiliser makers such as Coromandel are fairly valued. If the market sees any correction, then fertiliser stocks will fall slower compared with any other counter.