Coromandel, Tata Chemicals, National Fertilizer good fertilizer stocks: Gaurang Shah

Gaurang Shah, Asst VP, Geojit BNP Paribas Financial Services, in a chat with ET Now talks about fertilizer stocks.

What are you hearing about the entire fertilizer pack? Is there anything conclusive that sort of justifies the kind of run up that we saw yesterday?

I think it is a little bit of surprise to me too and we as a brokerage house Geojit BNP Paribas do believe in two themes in the fertilizer pack Coromandel and National Fertilizer these are two that we like.

Tata Chemicals we had a buy coverage but with a longish time horizon we feel that on corrections may be sub 400 levels would be a very comfortable zone to get into Tata Chemicals of course not very directly related to the agri pack or the fertilizer pack but I think it has got a small amount of role to play to complement agri sector.

So from that point of view I think 2-3 stocks is what we like Tata Chemicals, Coromandel and National Fertilizer. The likes of Chambal and the Nagarjuna Fertilizer of the world will give you moves from a short term point of view but I do not think there is a going to be significant growth story there.