Nagarjuna Fertilisers and Chemicals Ltd. (NAGAFERT) has played a vital role in the fertiliser industry of India since 1976. Initially based in Hyderabad, this company has now grown to become one of the leading producers of urea in India, making a significant contribution to boosting agriculture as well as the national economy.
While NAGAFERT’s core business is urea production, the company has diversified into micro-irrigation and even ventured into energy and infrastructure through its parent group, Nagarjuna. These moves not only broaden NAGAFERT’s business horizons but also align with sustainable farming practices, a growing need in India’s agriculture sector.
NAGAFERT has had a mixed bag in terms of its financial performance. The company’s net sales rose by 38.88% to ₹1,160.06 crore in March 2024. However, NAGAFERT recorded a net loss of ₹199.42 crore, though this was less than the previous year’s bigger loss.
The company’s Q4 results in March 2024 show that it still faces financial difficulties, attributed to high raw material and fuel prices resulting in a pre-tax loss of ₹200.81 crore. However, there were signs of recovery in earlier quarters, suggesting NAGAFERT is gradually overcoming its operational challenges.
NFCL’s shareholding pattern reveals strong control by promoters, holding 56.11% of the company. Retail investors also show significant interest with a 48.32% stake. As this mix reveals, stakeholders have faith in the lasting future of NAGAFERT even when the market is unstable.
The future seems bright for NAGAFERT, aided by agricultural-supportive government policies, target expansion and increased focus on environment-friendly fertilisers. NAGAFERT is strategically positioned to exploit these developments as the demand for food and sustainable farming increases.
NAGAFERT’s share price is projected to rise consistently from ₹15.46 in 2024 to ₹41 by 2030, looking forward. This growth reflects investor confidence in the company’s strategic initiatives, technological advancements and its pivotal position in India’s agriculture.