Fertiliser stocks will do well in the long term: Fortress Financial Services

What is your take on the fertiliser pack considering they have started to run up ahead of the budget and then post that news coming in yesterday of that pricing decontrol?

What government is trying to do is that reduce the pressure on them, thanks to deficit what they are having. So they have increased the prices by say 10% or so approximately. So it is not going to have a major impact. It is more of a psychological movement which is happening prior to budget. But leaving that apart and leaving this initiative, I believe fertiliser stocks will do extremely well in the long term, especially something like GSFC, GNFC, something like Chambal Fertilisers, these are great stocks.

Of course Tata Chemicals also is included in that. The reason is simple. Government cannot do too much of a damage to this fertiliser. Sometimes government comes out with the positive things, sometimes they can be negative as we have seen in the oil sector, thanks to their own political reasons as well as to look at overall welfare of the whole society. So agro is a very favourite sector for the government anyway. So fertilisers I will not feel that it is going to be negatively impacted substantially and many of these stocks like GSFC and GNFC, they hold substantial shares of other group companies or Gujarat Government companies.

So that is very positive and that gives them another upright up movement possibility and of course these are good dividend paying companies. That is the third factor but in times like this, this is one of the factors to be kept in mind.