Most stock prices of the fertiliser companies have declined in the current calender year. While the decline is attributed to mainly the fertiliser pricing policy of the government, rise in naphtha prices have pushed up the cost of production for these companies in the last quarter (Jan-March) of the financial year 2002-2003.
The decline in naphtha prices will mostly have a positive impact on the user industries of the petroleum family product.
While IPCL is the largest importer of naphtha in the country, the major users are the fertilisers and power companies.
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The share price of IPCL, now under the Reliance fold has moved up from Rs 80.20 on January 1, 2003 to end today at Rs 85.10 on the BSE.
However, the prices of most fertiliser companies have seen a downtrend. Rashtriya Chemical Fertiliser (RCF) stock has declined from Rs 17.85 to Rs 14.15 during the same period.
Shares of FACT have declined from Rs 35.05 to Rs 25, GSFC has declined from Rs 25.45 to Rs 17.10 and GNFC has declined from Rs 31.25 to Rs 28.50.
Only a couple of fertiliser stocks have gained during the period. Shares of Coromandel Fertlizer have marginally moved up from Rs 63.20 to Rs 65, and shares of Godavari Fertilisers have inched up from Rs 33.95 to Rs 35.50 during the same period.