“Fertilizer stocks fertilized with hype — but GST relief still stuck in the pipeline!”

📉 Immediate Market Reaction - On June 24, RCF stock fell nearly 7% to ₹193.59. - Why? The GST Council did not approve the proposed exemption or rate cut for fertilizers. Instead, it referred the matter to the Group of Ministers for further review. 📈 Pre-Meeting Rally - Before the Council meeting, RCF and other fertilizer stocks had rallied 30–35% on hopes of a GST exemption. - The optimism was driven by a February recommendation from the Parliamentary Standing Committee to remove the 5% GST on fertilizers and raw materials like sulphuric acid and ammonia. 🧮 Fundamental Impact - Fertilizers currently attract 5% GST, while key raw materials are taxed at 18%, squeezing margins. - A GST cut or exemption would reduce input costs, potentially boosting profitability and demand — especially in rural India. - However, analysts believe the realignment may not have a meaningful impact unless raw material rates are also addressed.