The company has informed that the Government of India has enhanced the subsidy on SSP Fertiliser for the year 2008-09. Henceforth the subsidy on SSP Fertiliser shall be Rs 3658/- Per MT against Rs 1125/- Per MT, which is almost 225% increase. It has also announced the uniform all
Also subsidy will be linked to price escalation which again will benefit the Company. We believe that this will have positive impact on overall performance of the company in
long run & bottom line of the company will improve. At CMP, the stock is trading at 6.95x its trailing earnings. We recommend an “ACCUMULATE”.
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