nagarjuna fertilizers

[sculptor]

my broker informed me that not to bother about rs.2/- or rs.3/- but to buy nagarjuna fertilizers , since it has the potential of going upto rs.100/- if held for 2-3 years.

from the half year results i find that the profits have increased to rs.41/- crs as compared to rs.30/- crs for the whole of 2004-05.

besides that 2 mutual funds have also invested substantially in this company.

i hope that the 3rd quarter results will be equally good , if so i am expecting the price to move up to at least rs.20-rs.22/-

this is a turn around company which at this moment is available at a very attractive entry price of rs.14 - rs.15/-

 

[adultvish]

Yes Sculp You are right. Perhaps the company is going to make good profits till mid 2006.

Adultvish

 

[sculptor]

after the budget the whole fertilizer sector seems to be going down . the only reason i could gather was that the finance minister did not make any announcements for this sector as had been widely expected .

however this does not mean that the company which was doing well , will do any worse. i still have faith in the future prospects of this company , which may do well on their own merits , as they were doing upto the third quarter , before the finance ministers budget speech.

 

[sculptor]

now it is time to wait for the results . there is much news about nagarjuna in other discussion forums e.g. moneycontrol.com ....... some of it is encouraging , some discouraging . the whole scene probably now depends on the quarterly and annual results .
i sincerely hope the results do not dissapoint. however whatever happens , at least one thing is already confirmed .... they have covered the whole of last year 2004-05 profits within 6 months of the current year 2005-06 , i.e upto september 2005 half yearly results.

 

[kuldeep49]

This stock seems to be stuck in the trading range for over a year and not clear trend is emerging. The previous uptrend was March 2004 till Jan 2005 where the stock rose from Rs. 6 to about Rs. 12 but since then it has been hovering around this level. Unless something dramatic happens, I think that it will languish in this sideways trend for sometime. My suggestion would be to track it and buy once a breakout is confirmed. That way you will not have your money blocked.

 

[sculptor]

results for nagarjuna fertilizers are to be announced on 27th april .... whatever happens it has already shown 50% growth in net profits for the first 3 quarters , and i hope the 4th quarter will be equally encouraging.
in the message board on moneycontrol.com someone has given the break-up of the shareholding pattern . it is very instructive and informative . promoters themselves hold above 35% and along with private corporate bodies and financial institutions total to about 47% which shows a very healthy shareholding pattern.
further interestingly, a huge quantity of shares are held by the employees welfare society as well as employees benifit fund. this i think indicates that the employees themselves will be willing to increase the profitability of the company , and indirectly the value of their shares.
secondly about 77 lakhs shares are held by "lok prsaran" which are very good at successfully identifying turn around companies like voltas and rallis

 

[sculptor]

results of nagarjuna fertilizers are quite encouraging . business has consistantly grown throughout the year as compared to last year.
further as per news reported , the refinery project is on the verge of revival . both the tata's and reliance group are interested . if the deal goes through then it may add more than rs.30/- to the book value. price is expected to go up .

 

[sculptor]

what is encouraging about the recent price movements is the volume .
as what i have observed that twice during the last week the volume crossed 1 crore shares . to me , this means that this scrip has come into the notice of some of the bigger players in the market i.e. people who have sufficient resources to make a difference in the price movement . if the momentum continues than it may soon cross its second resistance level of rs.21/- ( the first was rs.18/-) . the next target would be rs.28/- to rs.30/- .

 

[sculptor]

did anybody observe the speed with which Nagarjuna fertilizers came down from Rs.19.50 to Rs.8.90 .? It is one of the most astonishing slides i have seen , as if the price of Rs.19.50 was just a bubble , without any relation to fundamentals . But we all know that Nagarjuna Fertilizers is a turnaround story , with its great prospects from the Refinery .
Then what could have caused this crash , with so much speed ?

 

[J_D]

Hello All,

Can anyone technically analyse the Nagarjuna Fertilisers scrip and suggest hold or sell points. The scrip shows some upward movement after being dormant for sometime.

John.