will government's massive surge in investment ... - Myiris.com

Apr-Jun 2013 Earnings Preview
Raw material prices ease however rupee depreciation a cause for
worry
Compared to Mar 2013, ammonia prices are lower by 16%, whereas phosphoric acid
prices are stable. Though raw materials prices have cooled off from their highs,
recent rupee depreciation has emerged as a new problem for the industry. Our
channel checks suggests that companies had reduced prices in May 2013; however,
due to recent rupee depreciation, they might increase prices in the near future to
pass on the impact of rupee depreciation provided monsoons remain supportive and
offtake improves.
Phosphoric Acid
1,200
1,100
(US$ MT)
1,000
900
800
700
600
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
Aug-12
Oct-12
Dec-12
Feb-13
Apr-13
Jun-13
Ammonia
780
700
(US$ MT)
620
540
460
380
300
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
Aug-12
Oct-12
Dec-12
Feb-13
Apr-13
Jun-13
Source: Bloomberg, PL Research
Source: Bloomberg, PL Research
Stock Performance
Absolute
Relative to Sensex
1M 3M 6M 12M 1M 3M 6M 12M
Chambal Fertilizers & Chemicals (16.8) (28.1) (47.2) (53.8) (16.3) (32.9) (45.1) (64.1)
Coromandel International (8.3) (2.8) (32.2) (34.5) (7.7) (7.6) (30.0) (44.8)
Deepa k Fertili s ers & Petrochemi cal s Corporation (1.7) (1.2) (26.1) (32.5) (1.2) (6.0) (24.0) (42.8)
Dhanuka Agritech (0.0) 11.5 3.5 36.3 0.5 6.7 5.6 26.0
Gujarat State Fertilisers & Chemicals 7.3 6.6 (14.5) (25.1) 7.8 1.7 (12.4) (35.4)
Rallis India 3.4 13.8 (7.3) (0.1) 4.0 9.0 (5.2) (10.4)
Tata Chemicals (10.2) (11.3) (26.6) (14.2) (9.7) (16.1) (24.5) (24.5)
United Phosphorus (12.9) 14.0 (1.3) 8.2 (12.3) 9.2 0.8 (2.0)
Source: Bloomberg, PL Research
July 8, 2013 34