Mumbai: Shares of fertiliser and agrochemical companies were among the top gainers on Tuesday, as sentiment got a fillip after better-than-expected first-quarter results by some firms and strong monsoons.

Paradeep Phosphates ended 8.6% higher to an all-time high of ₹216.3, after the company’s profit after tax rose 4,655% from the same period a year ago. Mangalore Chemicals and Fertilisers rallied 9.5%. Other stocks like Deepak Fertilisers, Rallis India, Sumitomo Chemical, GSFC and Coromandel International were up 4-6% on Tuesday.

“We’ve seen strong Q1 results from several companies in the agrochemicals and fertilisers space, including Coromandel International, Paradeep Phosphates, and Mangalore Chemicals & Fertilisers, driving stock gains on Tuesday,” said Anita Gandhi, head of institutional broking at Arihant Capital. Gandhi said that a recent pickup in demand, following a post-Covid slowdown, along with supportive monsoon forecasts, which are expected to be 6% above normal, has improved sentiment.

Shares of most of these companies have moved up strongly in recent months, with Mangalore Chemicals and Fertilisers, Sharda Cropchem, Paradeep Phosphates, Rallis and Coromandel International up 36-115% over the past six months.

Prashant Biyani, vice president at Elara Securities, said he remains ‘constructive’ on phosphatic fertiliser makers from a longer-term perspective, particularly on Coromandel and Paradeep Phosphate. He said that companies like Coromandel and Paradeep represent strong import replacement plays.

“India imports around 8 million tonnes of phosphatic fertilisers, and domestic capacity expansions position these firms well to meet future demand,” said Biyani. Elara has a price target of ₹2,737 for Coromandel International.