Nagarjuna Fertilisers exiting from power project

Nagarjuna Fertilisers and Chemicals declined 1.3% to Rs 37.95 at 14:38 IST on BSE after selling remaining 26% stake in the inter-state mega power project under construction in Udupi, Karnataka, to Lanco group.

The stock hit a high of Rs 40 and a low of Rs 37.50 so far during the day. The stock had a 52-week high of Rs 89 on 3 January 2008 and a 52-week low of Rs 12.65 on 2 April 2007.

The company’s current equity is Rs 428.18 crore. Face value per share is Rs 10.

The current price of Rs 37.95 discounts Q3 December 2007 annualised EPS of Rs 0.51 by a PE multiple of 74.41.

NFCL's net profit rose 35.1% to Rs 5.47 crore on 28% rise in sales to Rs 624.20 crore in Q3 December 2007 over Q3 December 2006.

Lanco had earlier acquired Nagarjuna Fertilizers and Chemicals’ (NFCL)’s 74% stake in the power project in May 2006. Nagarjuna Power Project has now been renamed as the Udupi Power Project. The project has a power purchase agreement for 913.5 megawatt (MW) with Karnataka and another 101.5 MW with Punjab. The purchases by the two states are backed by a three-tier payment security mechanism.

Nagarjuna Fertilizers and Chemicals’ principal activity is to manufacture urea and ammonia. The company also sells pesticides, seeds and other fertilisers in India.