Karvy Stock Broking Limited has maintained ‘buy’ rating on Chambal Fertilizers & Chemicals stock with an intraday target of Rs 92.

According to Karvy, interested traders can purchase the stock between Rs 83-85 with a strict stop loss of Rs 80. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 94.
 
Shares of the company, on Tuesday (Aug 12), closed at Rs 86.05 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 16089620. Current EPS and P/E ratio stood at 3.99 and 21.34 respectively. The share price has seen a 52-week high of Rs 96.40 and a low of Rs 33 on BSE.

The stock has great potential, and it showed good improvement in last few trading sessions. It will achieve the target price as the company has robust growth plans and strong operating capabilities.

Chambal Fertilizers & Chemicals Ltd has informed that the Annual General Meeting of the members of the Company will be held on September 10, 2008.

The disclosed a substantial drop in its standalone net profit for the first quarter ended June 2008. During the quarter, the profit of the company declined 61.44% to Rs 237.98 million from Rs 617.10 million in the same quarter, last year.

The company posted earnings of Rs 0.57 a share during the quarter, registering 61.49% decline over prior year period.

Net sales for the quarter rose 35.31% to Rs 8,052.70 million, while total income for the quarter rose 31.94% to Rs 8,437.76 million, when compared with the prior year period.

During the quarter, the company announced a fall in operating margin of 641.33 basis points to 12.16% on higher input cost. Interest cost decreased 15.59% to Rs 271.22 million while depreciation cost rose 1.81% to Rs 466.08 million over previous year period.

The company, on June 09, has taken delivery of a new Aframax Tanker - M.T. Ratna Shradha (DWT 105,777 MT) from Hyundai Heavy Industries Company South Korea.

The company’s two hi-tech nitrogenous fertilizer plants in Gadepan (Rajasthan), having a capacity of 1.7292 million tons of urea per annum, becomes India`s largest urea producer in the private sector. The facility in Himachal Pradesh can produce upto 20.52 million potato seeds (Technituber) per annum.

The processed food unit in Sonepat, Haryana processes, packages and freezes high quality fruits and vegetables using the brand name Everfresh.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Nat Fert, GNFC and Rashtriya Chem.