Investing in NSE: NAGAFERT Stock Market is to make money over the long term. Whether you are a first-time investor or not, you should know what happens if you buy Stocks. You might suddenly get a handsome amount and wonder where to invest. So, the best option would be to invest in the Stock market; however, you should research the company you choose before investing.
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What Do You Know About NSE?
Before stepping into investing in stocks, you should know about NSE. It is the first exchange in India to provide modern and fully automated electronic trading. National Stock Exchange is one of the leading stock exchanges in Mumbai, India. So, if you’re checking for options to join as an investor, you should know about stock markets and stock exchanges. First, however, you must also understand what NSE is. A stock or a share is one part of the total parts of a company. So, if you own some company stores, you’re a part owner. Therefore, a share has some value and raises money by issuing company shares to the public.
The NSE is the leading stock exchange in India and takes the fourth most prominent place worldwide based on equity trading volume. It was India’s first stock exchange to offer a screen-based trading system.
The NSE was initially set up to usher in transparency to the Indian market system and has delivered on its aim quite well. With the government’s help, the NSE successfully offers services such as trading, clearing, and the settlement of debt and equities comprising domestic and international investors.
How to Trade in NSE?
- Firstly, open an online Trading & Demat account. It is mandatory for buying, selling, and storing stocks.
- Choose an authentic broker who has done registration with SEBI.
- Then, move funds from your bank account to your trading account.
- Once set up, trading can begin!
About NSE: NAGAFERT
Late Shri K V K Raju promoted the renowned Nagarjuna Group in 1973, presently having an asset base of over Rs 21 billion with business activities in the Agri and Energy sectors. The Group’s significant presence in Agri-Business has diversified into sectors like Refinery, Power, Micro Irrigation Systems, and Plant Nutrition.
Nagarjuna Fertilizers and Chemicals Ltd manufactures and markets fertilizers and micro irrigation equipment in India and worldwide. Wishing to raise money from investors, the company has registered on Stock Exchange and kept shares open for buyers to buy. NAGAFERT has an operating revenue of Rs. 5,585.93 Cr. on a trailing 12-month basis.
Is it Safe to Buy at NSE: NAGAFERT?
Before deciding to buy shares, you should get complete details of the company. Then, after proper research and going through suggestions from experienced people, you should buy shares.
The positive things about NSE: NAGAFERT is:
- High Revenue and Profit Growth with a High Return on Capital Deployed (ROCE) and Low PE ratio
- Growth in Net Profit with increasing Profit Margin (QoQ)
- FII / FPI or Institutions increasing their shareholding
- The stock gained more than 20% in one month
- Strong Momentum: Price above short, medium, and long-term moving averages
Some of the things that are not upto mark for NSE: NAGAFERT are:
- Inefficiency in the usage of assets to generate profits – ROA declining in the last two years
- Declining Net Cash Flow: Companies not able to generate net cash
- Annual net Profit declining for the previous two years
- Book Value Per Share deteriorating for the last two years
- Companies with High Promoter Pledge
Important Information for Shareholders of NSE: NAGAFERT
Shareholders of NSE: NAGAFERT would be excited to see the share price gain of 35% and recover from prior weakness. Unfortunately, the last month’s payments did little to right the previous year’s losses, with the stock still down by 26%.
According to the research, Nagarjuna Fertilizers and Chemicals is a stock with good investment prospects with a price-to-sales ratio (or “P/S”) of 0.1x. Almost half the companies in India’s Chemical industry have P/S ratios above 1.1x. However, it requires further investigation to determine if it’s justified.
Growth Trend at NSE: NAGAFERT
As per the last year’s review of revenue growth, the company posted a remarkable increase of 141%. Moreover, the latest three-year period has also seen an astonishing 212% overall rise in revenue. So, we can confirm that the company has done a great job of growing revenue during this period.
Comparing that recent medium-term revenue line with the industry’s one-year growth forecast of 12% shows its noticeably more attractive growth side. Nevertheless, some shareholders believe that the performance has exceeded its limits and have been accepting lower selling prices.
Conclusion
As per the recent revenue trends, we suggest that the price decline risk is minimal. However, investors appear to recognize a likelihood of revenue fluctuations in the future. Therefore, you should also learn about these three warning signs spotted with Nagarjuna Fertilizers and Chemicals.
Of course, profitable companies with a history of significant earnings growth are generally safer bets. So we recommend seeing various collections of other companies with reasonable P/E ratios and growing earnings strongly.