{"id":10011,"date":"2025-07-18T13:55:40","date_gmt":"2025-07-18T08:55:40","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=10011"},"modified":"2025-07-18T13:55:43","modified_gmt":"2025-07-18T08:55:43","slug":"fertilizer-sales-recover-as-kharif-season-kicks-in-what-it-means-for-investors","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/fertilizer-sales-recover-as-kharif-season-kicks-in-what-it-means-for-investors\/","title":{"rendered":"Fertilizer sales recover as kharif season kicks in, what it means for investors?"},"content":{"rendered":"\n<p>Fertilizer companies are seeing a bounce back in sales as the Kharif season gains momentum. After a slow start to the year, farmers are back in the fields, and the demand for nutrients like urea, DAP, and CAN is picking up. Let\u2019s break it down.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Sales improve after a slow start<\/h2>\n\n\n\n<p>Fertilizer companies like <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/ffc\/\" data-type=\"post_tag\" data-id=\"89\" target=\"_blank\" rel=\"noreferrer noopener\">FFC<\/a><\/strong>, <strong><a href=\"https:\/\/ksestocks.com\/blog\/tag\/efert\/\" data-type=\"post_tag\" data-id=\"27\" target=\"_blank\" rel=\"noreferrer noopener\">EFERT<\/a><\/strong>, and <a href=\"https:\/\/ksestocks.com\/blog\/tag\/fatima\/\" data-type=\"post_tag\" data-id=\"171\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>FATIMA<\/strong> <\/a>have reported better sales in June 2025:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Urea sales rose 21% YoY<\/strong> in June<\/li>\n\n\n\n<li><strong>CAN sales rose 28% YoY<\/strong><\/li>\n\n\n\n<li><strong>DAP and NP sales<\/strong> fell 7% and 13% YoY, respectively<\/li>\n<\/ul>\n\n\n\n<p>The improvement is mostly due to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Discounts offered by companies <\/li>\n\n\n\n<li>Government-backed <strong>interest-free loans<\/strong> to farmers <\/li>\n\n\n\n<li>Lower stock levels at the retail level <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Kharif season demand up<\/h2>\n\n\n\n<p>As Kharif planting season continues, urea offtake (sales) is expected to grow <strong>15% YoY<\/strong>, reaching <strong>3.1 million tons<\/strong>. Full-year urea sales, however, may still be down by 6% due to heavy advance buying at the end of 2024.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Company performance highlights<\/h2>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>FFC (Fauji Fertilizer Company)<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Urea sales in June: <strong>269k tons<\/strong>, up 4% YoY<\/li>\n\n\n\n<li>DAP sales dropped by 11%<\/li>\n\n\n\n<li>Market share dropped slightly due to high base last year<\/li>\n\n\n\n<li><strong>Target Price (Jun\u201926): PKR 597<\/strong> | <strong>Dividend Yield: 9.2%<\/strong><\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>EFERT (Engro Fertilizers)<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Urea sales: <strong>208k tons<\/strong>, up 34% YoY<\/li>\n\n\n\n<li>Recovered market share from 32% to 36%<\/li>\n\n\n\n<li>DAP sales fell 62% due to increased local supply<\/li>\n\n\n\n<li><strong>Target Price: PKR 252<\/strong> | <strong>Dividend Yield: 10.3%<\/strong><\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>FATIMA Fertilizer<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Urea sales: <strong>81k tons<\/strong>, up 93% YoY<\/li>\n\n\n\n<li>DAP sales tripled YoY \ud83d\ude80<\/li>\n\n\n\n<li>Gained market share from 9% to 14%<\/li>\n\n\n\n<li>Strong growth expected from new <strong>Sheikhupura plant<\/strong><\/li>\n\n\n\n<li><strong>Target Price: PKR 125<\/strong> | <strong>Dividend Yield: 7.7%<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Investment view<\/h2>\n\n\n\n<p>Analysts are optimistic:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Earnings estimates for FATIMA revised up<\/strong> for both 2025 and 2026<\/li>\n\n\n\n<li>FFC and EFERT\u2019s 2025 earnings revised slightly downward due to higher discounts<\/li>\n\n\n\n<li>Export permission for urea could ease local inventory pressure and support margins<\/li>\n<\/ul>\n\n\n\n<p>Fertilizer stocks are looking attractive again as the Kharif season boosts demand. With strong dividends and improving sales, <strong>FFC<\/strong>, <strong>EFERT<\/strong>, and <strong>FATIMA<\/strong> are worth watching for long-term investors.<\/p>\n\n\n\n<p><strong>Source: AKD Securities <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fertilizer companies are seeing a bounce back in sales as the Kharif season gains momentum. After a slow start to the year, farmers are back in the fields, and the demand for nutrients like urea, DAP, and CAN is picking up. Let\u2019s break it down.<\/p>\n","protected":false},"author":9252,"featured_media":7255,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[27,171,89],"class_list":["post-10011","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-efert","tag-fatima","tag-ffc"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/01\/Fertilizer-Sector-2-1140x445.jpg",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/01\/Fertilizer-Sector-2-463x348.jpg",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/01\/Fertilizer-Sector-2-300x188.jpg",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/01\/Fertilizer-Sector-2.jpg",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=10011"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10011\/revisions"}],"predecessor-version":[{"id":10012,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10011\/revisions\/10012"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/7255"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=10011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=10011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=10011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}