Pick of the Week: Nagarjuna Fertilizers

BUY BUY BUY Nagarjuna Fertilizers
Equity – 428.18 Cr BSE Code – 500075 CMP – 39.15
BUY NAGARJUNA FERT. @ 38.75 – 39 TGT 41.75 – 42.25

Nagarjuna Fertilizers and Chemicals Limited (NFCL) is the flagship
Company of the Nagarjuna Group. Its plant in the southern Indian state of
Andhra Pradesh, has an installed capacity of 500,000 MT of Urea and
300,000 MT of Ammonia.

This state-of-the-art gas based plant in the port town of Kakinada, about 550
Kms east of Hyderabad, has been built in technical collaboration with
Snamprogetti, Italy and Haldor Topsoe, Denmark.

An ISO 9002 company, NFCL is involved in marketing the full range of
farm inputs. Urea is manufactured in the company's plant, and pesticides are
produced by the Group companies. The Agri Output Division and Seeds
Division help the farmers enhance productivity.
NFCL has grown to be one of the largest fertilizer companies in India. The
fertilizer plant has the distinction of being the single largest private sector investment and is the first gas based fertilizer plant in the region. The plant has been operating at over 100% capacity with an energy consumption rate
which is among the lowest in the world.

The recent budget is favorable for agricultural sector, and fertilizer sector. In
recent correction the stock has come down drastically, and now we feel it is
a value buy for short to medium term.