Nagarjuna fertilizer and chemicals ltd
Author Name – Nandani Dhandharia
Introduction:
Nagarjuna Fertilizers and Chemicals Ltd. (NFCL) is an Indian company specializing in the manufacturing and marketing of fertilizers and agricultural products. Established in 1985, NFCL is part of the Nagarjuna Group, which operates in various sectors, including agribusiness, energy, and infrastructure.
Key Highlights:
Headquarters: Hyderabad, Telangana, India
Products: Urea, micronutrients, specialty fertilizers, and agri-services
Manufacturing Facilities: The company operates one of India’s largest urea production plants in Kakinada, Andhra Pradesh.
Business Focus: NFCL primarily focuses on improving agricultural productivity through high-quality fertilizers, innovative solutions, and farmer-centric initiatives.
Sustainability & Innovation: The company is involved in eco-friendly and sustainable farming practices, including promoting efficient use of fertilizers and advanced agricultural techniques.
Objective:
The objective of this study is to determine the beta value of Nagarjuna Fertilizers and Chemicals Ltd related to the Nifty50 Index. Beta measures the stock volatility compared to the market. This analysis will help investors assess the risk associated with Nagarjuna Fertilizers and Chemicals Ltd stock and make informed investment decisions.
Literature Review:
Corporate Background and Growth
NFCL’s headquarters is located in Hyderabad, Telangana, and it operates one of India’s largest urea manufacturing plants in Kakinada, Andhra Pradesh. The company is primarily focused on the production of urea, a key nitrogen-based fertilizer, along with other specialty fertilizers and micronutrients. Its production capacity and operational efficiency have positioned it as a significant player in India’s fertilizer industry (Gulati & Sharma, 2020).
Sustainability and Corporate Social Responsibility (CSR)
NFCL actively promotes sustainable agriculture through initiatives such as soil health management, water conservation, and farmer education programs. The company aligns with India’s government policies on self-sufficiency in fertilizer production and environmental sustainability (Kumar et al., 2021).
Data Collection:
Nagarjuna Fertilizers and Chemicals Ltd and Nifty50 data was download for period 1-1-24 to 31-12-24 and data was manipulated to find out the friday closing price were calculated of Nifty50 – X and Nagarjuna Fertilizers and Chemicals Ltd = Y, Y was regression on X
Data Analysis:
The regression equation:
Y = -94.44 + 0.03X
This describes the relationship between the Nifty 50 (X) and the Nagarjuna Fertilizers and Chemicals Ltd share price (Y), indicating that Nagarjuna Fertilizers and Chemicals Ltd share price is the dependent variable. The positive coefficient of 0.03 suggests that for every unit increase in Nifty 50, the share price of Nagarjuna Fertilizers and Chemicals Ltd is expected to increase by 0.03 units. With 46 observations (N = 46), the model’s R-squared value is 0.0009, indicating that 0.09% of the variation in Nagarjuna Fertilizers and Chemicals Ltd share price can be explained by changes in the Nifty 50. The remaining 99.91% is attributed to other factors not included in the model. The p-value for the slope is not explicitly visible in the summary output, but based on the extremely low R-squared value, it is likely not statistically significant at the 5% level. Hence, the model provides no strong evidence of a significant linear relationship between Nifty 50 and Nagarjuna Fertilizers and Chemicals Ltd share price, suggesting that market movements have minimal or no meaningful impact on the company’s stock price.
Conclusion:
Since the beta is -89.6 less than 1, it indicates that Nagarjuna Fertilizers and Chemicals Ltd is not preferable for short-term investment.
Reference:
Gulati, A., & Sharma, P. (2020). Fertilizer Industry in India: Growth and Challenges. Oxford University Press.
Mishra, S., & Rao, K. (2019). Sustainable Agriculture and Fertilizer Management in India. Springer.
Kumar, R., Verma, N., & Singh, A. (2021). Corporate Social Responsibility in Indian Agribusiness: Case Studies and Perspectives. Routledge.