Security ID : CHAMBLFERT Group / Index : B / S&P BSE 500 Face value : 10.00 Security Code : 500085 ISIN : INE085A01013 Industry : Fertilizers.
Here are the details of Chambal divisions:-
1. Agri Divison: -Chambal Fertilisers and Chemicals Limited is one of the largest private sector fertilizer producers in India. It was promoted by Zuari Industries Limited in the year 1985. It's two hi-tech nitrogenous fertilizer (urea) plants are located at Gadepan in Kota district of Rajasthan. The two plants produce about 2 million MT of Urea per annum. The first plant was commissioned in 1993 and the second plant in 1999. These plants use state-of-the-art technology from Denmark, Italy, United States and Japan. The company caters to the need of the farmers in eleven states in northern, eastern, central and western regions of India and is the lead fertilizer supplier in the State of Rajasthan. The Company has a vast marketing network comprising 13 regional offices, 1,700 dealers, and 20,000 village level outlets.
2. Shipping Divison: - In 2004, Chambal decided to enter the energy transportation sector and acquired India Steamship Company Limited, one of India's oldest shipping companies.
The subsidiary of Chambal Fertilizer: -
Chambal Fertilizers have three subsidiaries:-
1.Chambal infrastructure venture Ltd: -Chambal proposes to foray into infrastructure related business including the Power Sector. A wholly owned subsidiary of Chambal - Chambal Infrastructure Ventures Limited (CIVL) has been set-up for the purpose. Chambal's endeavor in the power sector would be to build a major integrated power business, across various sectors, including fuel sourcing through coal mining to take advantage of the significant and expanding opportunities in the fast-growing power sector in India.
2.India Steamship Pvt. Ltd Singapore: -A wholly owned subsidiary engaged in the shipping business in Singapore.
3. CFCL Technologies Ltd: -With the aim to enter the software technology market, Chambal Fertilisers set up the India Software Group (ISG) in 1998 as its software arm. In an attempt to further expand in the overseas market, the company soon acquired Novasoft Information Technology Corporation, a New Jersey, U.S.-based company, along with its subsidiaries.
Joint Venture of Chambal:-
Indo Maroc Phosphore SA (IMACID):-
Phosphoric Acid is an important raw material in the manufacture of Phosphatic fertilizers. This vital ingredient is in short supply in India. With the country being the largest importer of Phosphoric Acid, there was a clear need to secure captive sources of this chemical.
Initially, IMACID produced 3300 MTPD of Sulphuric acid, making it the largest single stream plant using Monsanto Environ Chem, USA Double Contact Double Absorption Technology Process and produced 1000 MTPD of merchant grade Phosphoric Acid based on Dihydrate Mark IV Process of Prayon Rupel Technologies, Belgium. After debottlenecking in 2006, the production of Sulphuric Acid has gone up to 3800 MTPD and Phosphoric Acid to 1400 MTPD.
Located at the port of Jorf Lasfar, IMACID factory is utilizing the mega infrastructure provided by OCP like a railhead for Rock phosphate and a modern port facility for liquid Sulphur and Phosphoric Acid. Further, IMACID has constructed a power plant of 27 MW Steam Turbo Generator, Water Treatment and Instrument Air system, Storage Tanks and Sea water pumping station to meet its requirements.
Promoters pledged his 7.08% shares although promoters pledged shares quantity is very low, but the rule is the rule so due to my rule about pledged share I do not publish this stock on http://www.maheshkaushik.com and publish it under trading stocks for 20%+ return only.
See full list of public shareholding including FII and DII here:-
Public Shareholding of Chambal Fertilizer
How Chinki Earn INR 4,73,90,45,652 from Stock Market
Then you understand that I do not use stop loss so if I hold any stock for a long time then I get dividends, see earlier history of Chambal Fertilizers Dividends here:-
|Dividend Declared ( )|
So at CMP 62.65 CFCL traded 9% above from his base price, Now I think the valuation of Chambal Fertilisers and Chemicals Limited is still cheap at this level.
Click here to download last three-year closing price data with the graph.
6. No any bonus issue right issue and bulk deals are recorded in last two years. (at BSE )
Due to his subsidiaries and business diversified model stock have good chance to demerge in future.
So Chambal Fertilizer is a good company, but I am not going to buy it due to it pesticide business.
Why I do not buy this stock
For answer of this question remember point 8 of my 2014 recommendation of super crop safe (which I recommended at 14.55 and now traded at 121.60, If you do not remember it then read it again here: -Buy Super Crop Safe@ 14.55)
So as I told earlier that I do not buy any stocks which have the business of Alcohol, Pesticides, Cigarettes, Meat and Poultry and this company is engaged in pesticides business.