Smallcap PSU stock jumps over 15% after robust Q3 results

Shares of smallcap PSU firm National Fertilizer (NFL) jumped over 15% to Rs 64 in Tuesday's intraday trade on BSE on the back of the company's robust performance in the third quarter of FY23. The company reported a consolidated net profit of Rs 554 crore in the December quarter of FY23, as against a loss of Rs 23 crore a year before.

National Fertilizer posted revenue from operations of Rs 10,137.34 crore in the quarter ended December 2022 as against Rs 5,091.71 crore during the quarter ended December 2021, representing a gain of 99%.

The company recorded total expenses of Rs 9,384.06 crore in Q3FY23 compared to Rs 5,080.9 crore in the year-ago quarter. The EPS of National Fertilizer reached Rs 11.29 in Q3FY23 as compared to Rs -(0.47) in the same quarter last year.

At 12.52 pm, the scrip was trading 10.2% lower at Rs 61.25 on BSE. However, on a year-to-date basis, the stock has fallen by 18%.

Technically, NFL is trading above 5 out of 8 SMAs. The stock traded higher than 5-day, 10-day, 100-day, 150-day and 200-day moving averages but lower than 20-day, 30-day and 50-day moving averages. The company has a market cap of Rs 3,059 crore. From its 52-week high of Rs 82.4, the stock is trading 26% lower.

National Fertilizers is an Indian central public sector undertaking firm. It is a Miniratna company, with the Government of India owning a majority stake. Incorporated in 1974, NFL comes under the administrative control of the Ministry of Chemicals and Fertilizers, and is the second-largest producer of the key fertiliser urea in India. NFL has five gas-based ammonia-urea plants viz Nangal and Bathinda in Punjab, Panipat in Haryana and two in Vijaipur (Madhya Pradesh).

NFL is engaged in the manufacturing and marketing of Neem Coated Urea, four strains of Bio-Fertilizers (solid & liquid), Bentonite Sulphur and other allied Industrial products like Ammonia, Nitric Acid, Ammonium Nitrate, Sodium Nitrite and Sodium Nitrate. The brand name of the company is popularly known in the market as Kisan.

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