Recently there is a aggressive Insider Trading activity happening in the company.( Purchasing from open market ) . Could’t figure why.
.
Just happened to see “Madhya Bharat Agro Products Limited” Announced on December 15 they made an agreement with “National Fertilizers Limited” for DAP/APS/NPK fertilizers
Here is the full details
“This is to inform you that Madhya Bharat Agro Product Limited (MBAPL) (A Unit of Ostwal Group of Industries)
has entered into a marketing agreement with National Fertilizers Limited (NFL), New Delhi (A
government of India undertaking) with effect from 15th December 2023 (subject to approval from DoF)
for 2,90,000 Metric ton of DAP/APS/NPKs valid up to 31st March, 2025, total expected inflow from this
agreement is ₹ 1170 Crores (including ₹ 447 Crores subsidy) excluding GST.”
.
Both companies are owned by Same promoter group. And both companies have similar products.
.
But why this will have an impact is currently MBAPL is currently their NPK/DAP capacity is 2.4 Lack metric ton and they are already running at 53% capacity as of november end.
Also MBAPL mentioned in their presentation
Work on setting up of 1000 TPD DAP/NPK ( 365000 MTPA ) plant with matching Phosphoric acid plant purchased from Birla Copper (A
unit of Hindalco Industries Ltd) commenced.
o Location for setting up DAP/NPK plant has been finalized in Maharashtra.
.
Did’t mention when the plant will be operational
.
If the new plant does’t become operational as early as possible
Maximum of 1.2 Lack Metric ton will be produced from MBAPL and remaining will be produced from KPL which is 1.9 Lack Metric ton ( Maximum ). But honestly don’t know how this intercompany model will pan out.
.
Currently KPL has 3 Lack Metric ton of Capacity on NPK/DAP fertiliser and currently running at 33% utilisation. If the NFL agreement which lead MBAPL to buy 1.9 Lack Metric ton from KPL then
.
There is also a possibility rather than KPL getting orders from MBAPL, KPL might get on agreement from NPL or some other fertiliser company. Let’s see
.
Happened to figure out Both the sons of MK ostwal are CA. Watched Praveen ostwal interview in youtube. My Initial judgement is he is simple and humble.
Disclosure : Invested
| Subscribe To Our Free Newsletter |
