PINC Research has come with its December quarterly earning estimates for fertiliser sector. The research firm expects strong year-on-year growth in revenues driven by higher realisations, however, margins to remain under pressure due to increased raw material prices.
PINC Research earning estimates:- We expect strong YoY growth in revenues driven by higher realisations, however, margins to remain under pressure due to increased raw material prices.
- Trading volumes across the sector should increase sequentially as volumes were bleak in H1FY12 due to higher international fertiliser's prices and delay in MOP contracts
- Earnings expected to grow YoY for Deepak Fertilisers (due to higher Chemical's volume)
- We expect new investment policy for Urea coming soon, however decision on decontrol for Urea is unlikely before March'12
- Recent correction in international prices of fertilisers augur well for our industry as players have taken price hike of ~100% at farm-gate level for complex fertilisers in last 18months and further price hike
looks difficult in near future.
| Company | Revenue | PAT | Reco | ||||
| Rs mn | QoQ% | YoY% | Rs mn | QoQ% | YoY% | ||
| Coromandel Intern | 28,577 | 5.4 | 39.9 | 1,949 | -30.1 | 29.6 | BUY |
| Chambal Fertiliser | 14,950 | -8.7 | 10.5 | 902 | -1.6 | -16.1 | SELL |
| Deepak Fertiliser | 5,800 | 1 | 56.6 | 541 | 0.4 | 34.5 | BUY |
| RCF | 16,200 | 11.2 | 5.6 | 656 | -15.7 | -4.1 | BUY |
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
