GSFC lines up a capex of Rs 4,000 crore, new fertiliser plants to boost total production

GSFC makes standard quality Caprolactam, which is well accepted globally. Nanavaty is optimistic about the pricing trends in the industry. "We are expecting the Caprolactam Benzene spreads to remain within the range of $800-900," he said.

One of the most promising predictions from Nanavaty was the expectation of substantial volume growth in the fertiliser segment. "We anticipate a growth of 15-20 percent in volume within the fertiliser segment," he affirmed.

Nanavaty observed a notable alteration in government policies related to subsidies, and its subsequent influence on margins. He explained that the preceding year was of significant importance for both the fertiliser sector and GSFC. The government displayed a commitment to safeguarding farmers, extending its support liberally to the industry through increased subsidies.

However, with input prices experiencing a decline, subsidies have also reduced correspondingly. While a direct comparison with the upcoming year isn't straightforward, the overall outlook for fertiliser margins remains optimistic. Nanavaty emphasised that the prospects for both fertilizer volume and margins appear promising or stable.

The stock was trading at Rs 163.35 on the NSE, up by 1.05 percent. It has lost over 1 percent in the last one months.