Fundamental Aspects of the companyIn the private sector Chambal Fertilisers and Chemicals is India’s largest producer of Urea .It's on the northern and western part of the country and supplies urea to nine states. Uttam Veer is the company's brand name.It has three divisions - agri-inputs, shipping and textiles. It has two subsidiaries - one in the software business and the other in the infrastructure sector. Its two joint ventures are in the fields of financial services and manufacture of phosphoric acid.
The shipping division, operating under the name of India Steamship has three Aframax tankers with a fleet capacity of about dwt 3,00,000 MT. And the textile unit, known as Birla Textile Mills, has a state-of-the-art spinning unit with a capacity of 80,208 spindles located at Baddi, Himachal Pradesh.
Financial Aspects of the company
YoY, the net sales of the company rose 35.31% at Rs.805.27 crore. 62% of its sales came from the fertilizer division. Trading earned it Rs.185.59 crore, shipping Rs.56.58 crore and textile sales was at Rs.66.40 crore. Operating expenses rose 47%. This pulled down the margins.
The shipping venture showed an operating loss of Rs.48.34 crore, while the textiles division had an operating loss of Rs.1. 22 crore, small loss but loss nevertheless. And this affected the overall operating profit of the company. OPM was down from 26.03% to 16.28%. EBIDTA was down 15% at Rs.131.10 crore.
PBT was down 25.51 crore and the tax outgo of Rs.33.51 crore as against Rs.15.31 crore in Q1FY08 pulled down the PAT, it was down by a whopping 61.43% at Rs.23.80 crore. NPM was down at 2.96% as against 10.37%, YoY.
Our result
Rs.96 was the stock high in the month June, though it has not drowned in the correction phase.Currently good but existing holder may continue there interest but any additional buying in this stock is not recommended.