Fertilizer stocks have been on an upward trajectory, marking significant gains in the past week, and this trend continued on October 16. The surge in these stock prices can be attributed to the escalating prices of fertilizers, a direct consequence of the ongoing Israel-Hamas conflict.
Notably, companies such as Gujarat State Fertilizers & Chemicals Limited (GSFC), The Fertilisers And Chemicals Travancore Limited (FACT), Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), and Madras Fertilizers have seen substantial gains, ranging from 9 percent to 25 percent over the last five days.
As of 12:52 pm, the stock prices were as follows: GSFC had risen by 12.34 percent to reach Rs 209.9, FACT had gained 18.83 percent, reaching Rs 651.45, Madras Fertilizer had increased by 11.16 percent, reaching Rs 85.15, and GNFC had gone up by 5.69 percent, reaching Rs 671.
The Israel-Hamas conflict has raised concerns about the global supply chain of potash fertilizer. The Ashdod Port, a significant export hub for Israel’s potash fertilizer located north of Gaza, is currently operating under emergency conditions due to the ongoing conflict. This situation puts approximately 3 percent of the global potash supply at risk, as reported by Bloomberg, citing an analysis by Ben Isaacson, an analyst from Scotiabank.
It is worth noting that GSFC reported a 67 percent year-on-year decline in net profit in its June quarterly results. Nevertheless, despite recent events, fertilizer stocks have shown impressive performance, with most stocks experiencing gains of 21 percent to 95 percent over the past six months.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
