Our analysis of product-wise subsidy shows that subsidy on DAP has increased the most - by Rs1,465/MT (+16% yoy). On the other hand, subsidy for MOP has fallen by Rs763/MT (-10% yoy). Subsidy for all other grades of P&K; fertilisers has increased by ~5-10% yoy. Taking into account the new subsidy rates and the ~10% price hike, which the industry has taken in DAP and other NPK grades of fertilisers from Feb'18 onwards, gross margin in DAP and most other complex fertilisers remains broadly unchanged. We remain positive on companies that are backward integrated in phosphoric acid and have higher revenue share from NPK fertilisers, as they enjoy brand equity and less...