Fertilizer space looks very promising: Rajesh Jain

Rajesh Jain, Market Strategist in an interview with ET Now talks about fertliser sector stocks.

Identify some money making ideas for our viewers?

There are lots of stock clusters where you can start investing on a systematic basis for a couple of months and look forward to multibagger gains over the years.

The fertilizer space looks very promising and despite the recent run up I do not think the full potential has been exhausted for investors. I believe that a blended play like RCF which has got drivers like PSU disinvestment potential, real estate monetisation in addition to the fertilizer sector deregulation being the ticker drivers, I think the margin of safety is also fairly good and I expect the stock should easily give you a 100% kind of gains in a 12 to 18 month period.

RCF interestingly is pursuing a model where for its employees it is developing a township in partnership with real estate developer and thus trying to monetize the real estate value that it has. Fertilizer sector is witnessing a new slew of capital investments something that did not happen for over a decade.

We are all aware of the pricing upsides and also the nutrient based pricing that has come and has changed the fortunes of several companies. I think RCF would easily be a very good play and in the private space Coromandel International offers good promise so that is one money making cluster where you can get in.