FFC: Fauji Fertilizer Company Improving dynamics to provide relief – By Foundation Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Drop of 13% in share price of the company is not aligned with the fundamentals given improving nitrogen market dynamics. Lower probability of steep discounts being offered by RLNG players and better agronomics would allow company to fetch better pricing. Investment into 330MW coal based power plant at Thar and offshore expansion into urea manufacturing plant would provide further traction to the stock. Hence, we have upgraded our stance to &ldquo;Outperform&rdquo; with a TP of Rs106/sh.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">: Urea prices would improve going forward despite elevated inventory levels as breakeven prices of LNG players remain higher, in our view. Higher Arab light prices would reduce the ...