This small-cap fertilisers and agrochemicals stock has gained 4% today: Here’s why

Shares of the fertilisers and agrochemicals stock, Gujarat Narmada Valley Fertilisers and Chemicals, gained over 4 per cent intraday to scale the day’s high of Rs 684.65. The gains in the stock were seen after the company, in post-market hours on Friday, informed BSE about the company’s forthcoming board meeting.

“We hereby notify that a Meeting of the Board of Directors of the Company will be held on Wednesday, the 8" November, 2023, inter-alia, to approve the Unaudited Standalone and Consolidated Financial Results for the Second Quarter and First Half of the Financial Year ended 30" September, 2023,” said the company in a regulatory filing.

“For prevention of Insider Trading in the Securities of the Company, read with the SEBI (Prohibition of Insider Trading) Regulations, 2015, "Trading Window" for dealing in the Securities of the Company shall remain closed for all Designated Persons as defined in the Code and will be opened forty-eight (48) hours after the declaration of Unaudited Standalone and Consolidated Financial Results for the Second Quarter and Half Year ended 30th September, 2023,”  added the filing.

Also, on the sidelines of the meeting, the company’s board will be mulling the share buyback proposal. To this effect, the company said that at the said board meeting scheduled for November 8, 2023, the directors will consider the proposal for the buyback of shares.

If approved, this will be the company’s first-ever share buyback announcement.

On September 18, the fertiliser scrip traded ex-dividend in respect of the final dividend of Rs 30 per share for FY23.

In the past one year, the stock has underperformed with a negative return of 9 per cent, while in the past three years, the stock has delivered a multibagger return of 225 per cent.
Its 52-week low and high prices are Rs 484.4 and Rs 735 per share, respectively.

The stock is trading at a low valuation with a TTM price-to-earnings ratio of 10.4, which is below the industry average.

The consensus recommendation on the stock from one analyst is a 'strong buy'.

At the time of writing the copy, around 11:08, the stock had traded a tad higher at Rs 662.6 per share.

Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC), with a market valuation of Rs 10,298 crore, manufactures and sells various fertilisers, such as urea and ammonium nitro phosphate, under the brand name Narmada.