The Hindu Business Line : Delayed rains hit four PSU fertiliser stocks

THE delayed monsoon has hit the fertiliser stocks badly. The four public sector fertiliser companies lined up by the Government for disinvestment have suffered a loss in valuation ranging between four and 12 per cent during the week even as the benchmark BSE Sensex gained 122.49 points or 3.85 per cent. Interestingly all other PSUs listed for disinvestment have gained during the week.

The highest loser during the week was Madras Fertiliser Ltd (MFL) for which the Government is yet to invite expressions of interest (EoI) followed by Fertilizers and Chemicals Travancore Ltd (FACT).

MFL's valuation went down by 12.85 per cent while FACT went down by 6.7 per cent.

National Fertilizers Ltd (NFL), whose disinvestment exercise is currently under way and due diligence exercise is being done, lost the minimum out of the four fertiliser PSUs.

NFL lost 4.43 per cent while Rashtriya Chemicals Ltd (RCF) went down by 6.28 per cent.

Marketmen also pointed out that the volumes were low for FACT and NFL during the week. According to market observers, with the ongoing rally people who had built up positions in these PSUs expecting to profit by surrendering their shares in the open offers post-disinvestment have actually rejigged their portfolio and have exited from fertiliser sector.

Adding to the problem is the meteorological department's contradictory forecasts about the monsoon, which is making the prospect for the fertiliser industry look bleak.

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