Buy frontline fertiliser stocks for a medium-term horizon: Ashu Madan
In a chat with ET Now, Ashu Madan, COO, Religare Securities shares his views about the fertiliser sector.
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| Updated: In a chat with ET Now, Ashu Madan, COO, Religare Securities shares his views about the fertiliser sector.
ET Now: With the policy sensitivity to fertilisers sector what you would be doing with a broad spectrum of stocks out there?
Ashu Madan: Yes, certainly. During the course of the budget if there is anything to do with railways and fertilisers then these are the two sectors which suddenly see a surge in the prices and the trading plays available. But this kind of news could act as a dampener. I still feel that if there is a sharp knee-jerk reaction because of this news in the fertiliser sector then with a slightly medium-term view I would get into buying recommendation of RCF, Chambal and all these frontline fertiliser stocks for a medium-term horizon.
ET Now: So at a 5% correction, you like these pure play fertilisers, urea players or you like the complex fertiliser stocks as well?
Ashu Madan: No, pure play would be definitely better because 5-10% correction in this kind of an environment and news flow would still be one of the better sectors to be in. With a medium-term view, I still hold that it is one of the sectors, which could give us returns even if the market stabilises over a period of time.
ET Now: With the policy sensitivity to fertilisers sector what you would be doing with a broad spectrum of stocks out there?
Ashu Madan: Yes, certainly. During the course of the budget if there is anything to do with railways and fertilisers then these are the two sectors which suddenly see a surge in the prices and the trading plays available. But this kind of news could act as a dampener. I still feel that if there is a sharp knee-jerk reaction because of this news in the fertiliser sector then with a slightly medium-term view I would get into buying recommendation of RCF, Chambal and all these frontline fertiliser stocks for a medium-term horizon.
ET Now: So at a 5% correction, you like these pure play fertilisers, urea players or you like the complex fertiliser stocks as well?
Ashu Madan: No, pure play would be definitely better because 5-10% correction in this kind of an environment and news flow would still be one of the better sectors to be in. With a medium-term view, I still hold that it is one of the sectors, which could give us returns even if the market stabilises over a period of time.
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