National Fertilizers Share Price Target From 2025 to 2030

National Fertilizers Share Price Target From 2025 to 2030

National Fertilizers Ltd. (NFL) is a leading public sector company in India specializing in the production and marketing of fertilizers. The company operates under the Ministry of Chemicals and Fertilizers, Government of India. NFL is known for its high-quality urea production and other agricultural input solutions.

Leadership Team:

The company is guided by a tight leadership hierarchy led by a Chairman & Managing Director, aided by a team of directors who manage finance, marketing, and operations.

Market Capitalization & Employees:

  • Market Cap: ₹4,305 Crore
  • Number of Employees: Approximately 3,500+
  • Industry: Fertilizers & Agrochemicals

Competitive Position:

NFL is competing with other fertilizer industry giants such as:

  • Rashtriya Chemicals & Fertilizers (RCF)
  • Chambal Fertilizers
  • Gujarat State Fertilizers & Chemicals (GSFC)

2. Financial Stability: How Robust Is It?

Revenue & Profit Growth:

  • NFL has been experiencing rising revenue growth over the past five years under the support of government incentives, strong demand at home, and production capacity expansion.

Debt vs. Equity:

  • Debt-to-Equity Ratio: 0.55 (Moderate)
  • Shows well-balanced leverage, but debt reduction is preferred

Earnings Per Share (EPS):

  • EPS (TTM): 5.24
  • EPS has fluctuated, but growth is anticipated in rising demand.

Cash Flow:

Positive operating cash flow ensures future sustainability.

Reports to Look for:

  • Balance Sheet: Shows stable financial health with manageable debt.
  • Income Statement: Reveals steady revenue growth.
  • Cash Flow Statement: Reflects operational efficiency and financial stability.

3. Stock Performance: How Does It Behave?

Recent Stock Performance:

  • 52-Week High: ₹169.95
  • 52-Week Low: ₹82.11
  • Current Price: ₹86.21

The stock has seen a 17.26% decline over the past year.

Technical Indicators:

  • Moving Averages: Stock has been below major moving averages, signaling weakness.
  • RSI (14): 31.1 (Close to oversold levels, hence potential for rebound)
  • MACD: -6.2 (Bearish signal)
  • ADX: 30.1 (Indicates moderate trend strength)

National Fertilizers Share Price Target From 2025 to 2030

4. Dividends & Returns: What Do Investors Get?

  • Dividend Yield: 0.31%
  • Dividend Payout: Low but frequent
  • Stock Buybacks: No recent notable buybacks

NFL provides limited dividend returns but is a suitable stock for long-term growth investors.

5. Growth Potential: What’s Next?

Expansion & Innovation:

  • Increased production capacity to meet increasing fertilizer demand.
  • Government agricultural subsidy-friendly and in-house production of fertilizer self-sufficiency policies.
  • Merger or acquisitions possible for market share expansion.

Market Trends:

  • Growing demand for Indian agriculture.
  • Government incentives towards local fertilizer production.

6. External Factors: What Can Move the Stock?

Economic & Industry Trends:

  • Raw material prices globally (natural gas, ammonia, etc.) fluctuations.
  • Interest rates & inflation affecting costs & margins.

Government Policies:

  • Subsidy policies for revenue-favorable ones.
  • Regulatory policy changes on fertilizer prices may have an effect on profitability.

Institutional Investors:

  • Promoter Holding: 74.71% (Consistent)
  • Institutional Investors: 7.70% (Slowing growth)
  • Foreign Institutional Investors (FII): 0.42% (Minimal but rising interest)

National Fertilizers Share Price Target From 2025 to 2030

7. Risk Factors: What Can Go Wrong?

Market Risks:

  • Negative pattern in stock price over last quarter.
  • Pressure of competition from industry and prices.

Business Risks:

  • Dependence on subsidies from government.
  • Disruption to supply chain affecting availability of raw materials.

Financial Risks:

  • Moderate amount of debt; need for aggressive cash flow management.
  • Unstable earnings volatility as a function of fertilizer price volatility.

Political/Global Risks:

  • Trade policies that affect imports of raw materials.
  • The impact of global climate change on demand for agriculture.

National Fertilizers Share Price Target Projections in ₹ (2025-2030)

YEAR  SHARE PRICE TARGET (₹)
2025 ₹170
2026 ₹260
2027 ₹350
2028 ₹440
2029 ₹530
2030 ₹620

FAQs For National Fertilizers Share Price

1. Is National Fertilizers Ltd. a good long-term investment, or not?

Yes, the better support from the government, improvement in demand, and steady revenue growth are beneficial. Watch for debt levels and for policy changes.

2. What is the targeted share price for NFL by 2025?

The targeted share price for 2025 shall be ₹170.

3. How does NFL fare against its peers?

NFL has a strong market presence but faces competition from RCF, Chambal Fertilizers, and GSFC. Its government backing provides a competitive edge.

4. Does NFL pay dividends?

Yes, but the dividend yield is low (0.31%), making it more suitable for growth investors than dividend seekers.

5. What are the key risks in investing in NFL?

  • Dependence on government subsidies.
  • Fluctuations in raw material costs.
  • Competitive market conditions.

6. What has caused the share price to decline over the last one year?

The share has declined by 17.26% due to the fluctuations in the industry, subsidy issues, and market trends. However, in the long term, the prospects look very bright.

7. What would trigger growth in NFL over the next few years?

  • Availability of more products.
  • Appropriate government policies
  • Escalating demand for fertilizers in India

NFL is a solid long-term investment with government support and stable market position. Although short-term technical signals point to weakness, long-term growth prospects are high, particularly with India’s expansion in agriculture.

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