The combined market capitalization of the top 15 stocks in the Fertilizer sector stands at around Rs. 1.48 lakh crore. Among these companies, as of 30 Jan 2024, only Coromandel has released its financial results for the December 2023 quarter, while the remaining companies are yet to disclose their results.
In comparing the financial performance of the top 15 companies during the September 2023 quarter, there is a notable decline in net sales. The reported net sales amount to Rs. 35,276 crore, reflecting a 15% decrease from the corresponding figure of Rs. 41,495 crore in September 2022. Both operating profit and net profit have also experienced declines, registering decreases of 26% and 27.5%, respectively.
An examination of the latest results from Coromandel reveals a similar trend in the current quarter. Coromandel reported a decline of 34% in sales, 54% in operating profit, and 56% in PAT. This suggests a consistent trend that may extend to other companies in the sector for the current quarter.
However, despite these fundamental changes and performance declines, it’s noteworthy that the stock prices of these companies have not reacted correspondingly. The market appears to be factoring in additional variables or exhibiting resilience to the current challenges faced by the Fertilizer sector. Investors and analysts should carefully assess the market dynamics and the disconnect between fundamental changes and stock price movements to make informed investment decisions in this sector.