Chambal Fertilisers & Chemicals Ltd - Impressive quarter - Emkay

Reco: ACCUMULATE
CMP: Rs 72
Target Price: Rs 98

- Chambal's Q1FY13 results were above est driven by higher urea production & trading. Revenues stood at Rs 13.6bn, 17% yoy while APAT stood at Rs 812mn, 11% yoy.

- Despite maintenance shutdown in April, urea business remained encouraging with higher than est volumes & strong margins. Trading margins of 13.9% was a positive surprise.

- Though core fert business remains strong, however shipping business remains a key overhang on stock.

- Maintain Accumulate with target price of Rs 98. Any announcement on policy front related to New Urea Investment Policy could act as a positive trigger.

Source : Equity Bulls

Keywords