Top trending stock below Rs 50: What should investors do with this multibagger fertilizer stock?

In its recent quarterly results, revenue jumped over 42 per cent YoY to Rs 30.20 crore while net profit grew as much as 88 per cent YoY in June 2022.  

While fertilizer stocks were a hot topic in 2022 given strong demand and business outlook for the sector, some smallcap and midcap stocks turned multibagger despite market uncertainty. So here we shall be discussing a stock that has grabbed investors’ attention amid fresh buying interest that has emerged in the stock.   

Investing in microcap and smallcap companies seem to be very risky given their uncertain profitability and cash flow. But at least for this company, the profitability has been increasing for the past few years. Well, this does not completely talk about company’s fundamentals but does just enough to catch the investors’ eye. We are talking about Agro Phos India (NSE Code: AGROPHOS) which has zoomed 10 per cent on November 02 amid fresh buying interest from the market participants.   

Agro Phos (India) Limited is engaged in the manufacturing of fertilizers and operates as a processor, supplier, marketer and exporter of a range of fertilizers. In its recent Quarterly Results, revenue jumped over 42 per cent YoY to Rs 30.20 crore while net profit grew as much as 88 per cent YoY in June 2022. Over the years, the EPS has skyrocketed astronomically, thanks to growing sales numbers and good margins.  The stock was the talk of the town back in April-May 2022, when the share price zoomed over 200 per cent. However, the past few months have seen strong profit booking at higher levels, which has put the stock at an attractive valuation. Moreover, its PE of 13.70 as against sector’s PE of 12.78 certainly interests investors.  

What should investors do with AGROPHOS?  

Talking about the technical terms, the stock has been consolidating at lower levels for some time now, taking support of its 200-DMA. Wednesday’s strong surge of 10 per cent backed by massive volumes has certainly cheered shareholders. Will this rally be again the same as we had witnessed during mid-year? Only time will tell.   

For now, the management expects strong growth to continue while global uncertain demand shall put headwinds to the company’s performance. Overall, the company has shown positive signs. Currently, AGROPHOS share price is trading at Rs 39.45 level on NSE. Investors should add this stock to their watchlist to track its further progress!