Get Magazines for free

Categories

10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Please note

Note: The artciles are not research reports but assimilation of information available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that I might have the dkiscussed companies in my portfolio and hence my point of view can be biased.Readers should consult registered consultants before making any investments
.

Archives : Old artciles

Tuesday, July 21, 2009

Nagarjuna Fertilizers & Chemicals Ltd:Future growth prospects and outlook

Scripscan:Nagarjuna Fertilizers & Chemicals Ltd
cmp:33
Code:500075

Story:Almost every sector has participated in the last bull run.One sector, that is the core of Indian economy has, however, remained in the background - the agricultural sector. India is a predominantly agrarian economy and agriculture is the largest private sector activity in the country with close to 60% of the population depending on it and allied activities for livelihood.Fertiliser and chemical companies thrive on booming agriculture and one company that can reap the rich benefits of an upswing in this sector, due to its strategic location, is Nagarjuna Fertilisers and Chemicals Ltd. (NFCL). NFCL, a leading manufacturer and supplier of plant nutrients such as urea, has a market dominance in the geographical segments in which it operates - Andhra Pradesh, Orissa and parts of West Bengal. But it has no pricing power because the farm sector is burdened by subsidies and uncompetitive practices. With a poor growth record, NFCL’s valuations has always remained moderate.But NFCL is emerging from a stagnating past. The company has got over its earlier losses by putting through a financial restructuring scheme. It is being seen as the best naphtha-based fertiliser plant with the locational advantage of being close to the prosperous southern India. There are market rumours that Reliance is looking to buy NFCL because of its obvious linkage with the gas fields of Krishna-Godavari Basin. One of the significant developments for NFCL is the financial closure of its refinery project (through its 51% subsidiary Nagarjuna Oil Corporation Ltd.).The six million tonne refinery to come up in Cuddalore, Tamil Nadu, is likely to bring down its operational cost, as NFCL will pay only for the gas and not for transportation. Nagarjuna Power (NPCL) is a 2 X 507.5 MW power project proposed near Mangalore in Karnataka with a capital outlay of around Rs4,400 crore. With a debt-equity ratio of 30:70 the equity works out to Rs1,320 crore, of which NFCL holds 25% (Rs330 crore). NFCL has been successful in roping in partners for its languishing projects in the power and refinery areas. It has the Lanco Group investing in its power project while Tata Sons has acquired a 26% stake in its refinery project, putting both the projects on track. These projects will yield fruit in the next three to five years; but NFCL will probably exit from them earlier to the advantage of its shareholders.Investors with a bit of risk apetite may buy the scrip at declines.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
 
x

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner