Chambal Fertilisers plunges 7% after Q2 net profit falls 46%

Shares of agrochemicals manufacturing company plunged 7% to Rs 304 in Wednesday’s intraday trade after the company’s net profit declined 45.7% to Rs 274.27 crore in the September quarter of FY23 as against Rs 505.92 crore during the September quarter of FY22.

However, sales of the company rose 91.7% to Rs 8,586.75 crore in the September quarter of FY23 as against Rs 4,478.61 crore during the September quarter of FY22.

The company's board also approved a revision in the capacity and estimated cost of the company’s Technical Ammonium Nitrate Project.

The capacity of the plant for manufacturing technical Ammonium Nitrate has now been revised from approximately 2.2 lakh MTPA to 2.4 lakh MTPA. The estimated project cost has also been revised higher from approximately Rs 1,170 crore to Rs 1,645 crore, the company said in a BSE filing.

The project is estimated to be completed in the next 34 months and implementation of the project is subject to necessary statutory and other approvals.

At 10.35 am, the scrip was trading 5% lower at Rs 309 over its previous day’s closing price of Rs 326 apiece. The stock has fallen nearly 33% in the last six months while it has plunged about 16% in the past one year.

As per Trendlyne data, the highest target for stock goes up to Rs 480, while the average target of Rs 432 suggests an upside potential of around 38% from the current prices.

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