Deepak Fertilisers best among fertiliser stocks: Sharmila Joshi

Sharmila Joshi, Co Head PCG Sales, Emkay Global Financial Services spoke to ET now on fertiliser stocks especially Deepak Fertilisers.

You have placed a target of 128 on Deepak Fertilisers. Monsoons also expected to auger well for this company. Which direction do you see it going forward?

Absolutely. Not just Deepak Fertilisers but if you would see the whole gamut of fertilisers stocks whether we are talking of stocks in the agrochemicals space, Coromandel International or Nagarjuna Agrichem, we have seen that in the recent weeks they have had a decent run up.

With Deepak Fertilisers what helped the company this last quarter was the fact that their chemical business did much better than expected and they covered for the losses because there were lower trading done in the fertiliser side of the business.

So going forward, both things would work for them. You would expect to see better numbers from the fertiliser front as well as the fact that they have an expansion going on on the chemicals side with the facility coming in.

So the chemicals side of the business is going to continue to contribute and fertilisers will do better, now that they have gas available, the gas availability will make fertilisers also a better space.

So all things considered, we have got a modest target of 128 but I am sure the stock can do better than that. So we do like the fertilisers space as a whole and I have highlighted Deepak Fertilisers.