As per the Concal Ammonia Business will be a dragger for this FY.
Fertiliser will not add to any Profit on an annual basis as subsidy has been withdrawn from back date and hence incremental profit will only offset the losses of Rs 168 Cr.
TAN business margins will be lower because of sumping from Russia which may continue for another 2 to 3 quarters.
Nitric acid will have normal commodity margins.
IPA business will be the main driver of profit during current FY.
Overall I see a negative performance for the Company and Stock price during the current year and valuation may come down to the range of 300 to 400.
Any improvement in Ammonia business may change the scenario and then we will have to relook the Company.
Disclosure: No holdings and tracking the overall chemical sector.
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