Krishana Phoschem To Set Up Fertilizer Plant in Madhya Pradesh

Mumbai, 19 June 2025: Krishana Phoschem Ltd (NSE: KRISHANA) witnessed a 2.10% jump in intraday trade early in the day today,  after its Board granted in-principle approval for a major capacity expansion initiative in Madhya Pradesh. The company plans to set up a 500 TPD DAP/NPK fertiliser plant and a 300 TPD sulphuric acid facility at Meghnagar in the Jhabua district. The expansion will be financed through a mix of internal accruals and debt.

Krishana Phoschem Ltd, a part of the Ostwal Group, has been listed on the NSE since 22 August 2019. Operating in the fertiliser segment, the company manufactures Single Super Phosphate (SSP), Sulphuric Acid, and other agrochemical inputs from its facilities in Rajasthan and Madhya Pradesh. It holds ISO 9001:2015 certification and continues to pursue strategic expansion to meet the evolving needs of Indian agriculture.

As of 1:08 PM IST on 19 June, shares of Krishana Phoschem Ltd were trading at ₹503.60, down ₹2.65 or 0.52% for the day. The stock opened at ₹510.00, reached an intraday high of ₹530.00, and touched a low of ₹500.00. The company’s market capitalisation stood at ₹3,110 crore with a P/E ratio of 35.97. Its 52-week range spans from ₹175.15 to ₹530.00. No dividend yield or quarterly dividend amount has been declared.

Intraday Trading Summary (As of 10:59 AM IST)

The intraday surge came on the back of investor optimism surrounding the company’s forward integration strategy. The new plants are expected to diversify Krishana Phoschem’s product portfolio while significantly enhancing its manufacturing capacity.

Details of the Board-Approved Expansion

This expansion aligns with the firm’s long-term vision of strengthening its footprint across India’s agriculturally intensive regions. With fertiliser demand on the rise, the move is expected to position the company advantageously in the supply chain.

 Valuation Metrics

Fresh Contracts, Earnings Surge & Stock Resilience

• Record Quarterly Performance: For the quarter ending 31 March 2025, the company posted a substantial rise in earnings. Net income leapt from ₹55.95 million to ₹328.56 million, while revenue grew from ₹2,640.18 million to ₹4,792.71 million. Basic earnings per share climbed from ₹0.90 to ₹5.31
• All-Time High Stock Price: On 10 June, the stock surged to a record high of ₹475, delivering approximately 69% gains year‑on‑year. This reflects heightened market confidence in the firm’s growth strategy.
• Temporary Storm Disruption Averted: In early May, operations at the Jhabua plant briefly halted due to a thunderstorm. Nevertheless, production resumed swiftly with minimal impact, showcasing the resilience of the firm’s operations.
• Sulphuric Acid Plant Back from Maintenance: The company had previously shut down its sulphuric acid facility from July to October 2023 for maintenance. It successfully resumed operations on 2 October, aided by long‑term supply agreements that ensured production continuity.

REF: https://nsearchives.nseindia.com/corporate/KRISHANA_19062025102613_NSEDISCLOSURE190625PDFSIGN.pdf

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