This PSU stock surged 67% in a week; did you miss the rally

National Fertilizers share price hit 20 per cent upper circuit on Bombay Stock Exchange on Monday on the back of strong volume. The stock of the state-owned company has surged 67 per cent in the past one week from Rs 38.1 on February 23 to Rs 63.70 as of today. National Fertilizers shares have rallied 183 per cent in one year and 56 per cent over one month.  

On Monday, shares of National Fertilizers opened higher at Rs 58.15 against previous closing price of Rs 53.10 on the BSE. During the day's trade, the stock was locked in the 20 per cent upper circuit at Rs 63.70, hitting its 52-week high. The stock was the biggest gainer in the BSE's 'A' group. A leader in fertiliser sector, the stock saw its market capitalisation (m-cap) surge to Rs 3,124.98 crore. Meanwhile, the BSE benchmark Sensex ended 749 points or 1.53 per cent higher at 49,849.

On the volume front, there was spurt in buying as 44.65 lakh shares changed hands over the counter as compared to two-week average volume of 5.75 lakh shares.

On February 26, the exchange had sought a clarification from National Fertilizers with reference to movement in volume. Responding to exchange query, the company said, "there is no information and/or announcement (including pending announcement) which in our opinion may have a bearing on the price/volume behavior of the company's scrip as traded across exchanges and which is required to be informed to stock exchanges."

For October-December quarter of 2020, National Fertilizers reported consolidated net sales of Rs 2,938.69 crore and net profit of Rs 52.89 crore. The company said it achieved highest-ever production of 9.99 lakh million tonnes (MT) Urea in December quarter of FY21.  

"The company successfully maintained its operations during constraints posed by COVID-19. The plants at Nangal and Panipat achieved their ever best Urea production during Oct-Dec, 2020. The Nangal Plant while increasing production levels at Plant also achieved the ever lowest quarterly energy of 6.602 GCal/MT Urea against previous best of 6615 GCal/MT Urea," National Fertilizers had said in a regulatory filing.  

Fertiliser companies reported stellar performance at the bourses over the last one week.  Rashtriya Chemicals & Fertilizers Ltd, Gujarat State Fertilisers & Chemicals (GSFC), Gujarat Narmada Valley Fertilizers & Chemicals, Rama Phosphates and Mangalore Chemicals and Fertilisers rallied up to 33 per cent in last five sessions.

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