Avoid fertiliser space, says PN Vijay

Avoid fertiliser space, says PN Vijay, Portfolio Manager, askpnvijay.com.

Vijay told CNBC-TV18, "Coromandel International is a blue-chip. It belongs to a very solid group and it is very cash- rich. So sourcing of phosphate has always been an issue for these types of phosphatic fertiliser companies. So, it  could be almost like a backward integration. But these types of things large companies keep doing. So, one doesn’t  change one’s view of Coromandel just because of this."
He further added, "On the other hand, I am not too sanguine about this sector right now because right now before the  budget there could be many things happening in the budget for sectors like this. So one should slightly avoid sectors  like fertiliser where government involvement is very high."