Fall in RM costs, higher urea subsidy may buoy fertiliser stocks: Analysts

Shares of Coromandel International, Deepak Fertilisers, GSFC, Madras Fertilisers, National Fertilisers, RCF, and Zuari Agro Chemicals have soared up to 196 per cent so far this calendar year (CY22)

The recent fall in global fertiliser and natural gas prices are likely to bring respite to fertiliser companies after the Ukraine war triggered input prices to sky-highs. However, analysts caution that the Russian export duty on fertiliser exports may have a trickle down impact on the Indian industry.

"In order to cushion farmers from skyrocketing fertiliser prices, the government is likely to increase subsidies on urea in the upcoming budget, which will boost fertiliser stocks going ahead. Stocks like Chambal Fertilisers and GSFC look attractive for the long-haul," said Ambareesh Baliga, independent market analyst.

According to reports, the current subsidy