Rashtriya Chemicals and Fertilisers soared 6.53% to Rs 70.20 at 10:00 IST on reports the company is set to enter cement distribution through its 6,000-strong dealer network.
The stock had jumped 12.17% to Rs 65.90 on the BSE on Thursday, 5 November 2009 boosted by the reports
Meanwhile, the BSE Sensex was up 157.23 points, or 0.98%, to 16221.13.
On BSE, 3.28 lakh shares were traded in the counter as against an average daily volume of 5.50 lakh shares in the past one quarter.
The stock hit a high of Rs 70.75 and a low of Rs 67.20 so far during the day. The stock had hit a 52-week high of Rs 90 on 5 June 2009 and a 52-week low of Rs 25.10 on 20 November 2008.
The stock had outperformed the market over the past one month till 5 November 2009, falling 2.51% as compared to the Sensex 4.76% fall. It underperformed the market in past one quarter, sliding 4.70% as against 1.01% rise in the Sensex.
The mid-cap state-run fertiliser company has an equity capital of Rs 551.69 crore. Face value per share is Rs 10.
The current price of Rs 70.20 discounts the company's Q2 September 2009 annualised EPS of Rs 4.07, by a PE multiple of 17.24.
Rashtriya Chemicals and Fertilisers is reported to be negotiating with seven cement manufacturers for the cement distribution foray.
The schedule for a trial run of 1,000 tonnes redistribution has reportedly been finalised and RCF as a clearing and forwarding (C&F) agent will forward the quantity to select dealers in Maharashtra by December 2009.
Rashtriya Chemicals and Fertilisers' net profit fell 33.5% to Rs 56.12 crore on a 31.5% decline in sales to Rs 1791.95 crore in Q2 September 2009 over Q2 September 2008.
RCF is engaged in manufacturing and distributing fertilizers and chemicals. The industrial products include methanol, methylamines, sodium nitrate, ammonium nitrate melt, ammonium bi-carbonate and others.
The Government of India holds 92.50% stake in the firm (As on September 2009).