India, Oct. 14 -- The Vadodara-based fertilizer and industrial chemicals company has made a move aimed at one of its biggest cost worries. It comes two months after a quarter that brought record Q1 sales but much thinner fertilizer margins. Sulphur and phosphoric acid are still expensive, and the new decision targets exactly that problem at the company's Jamnagar facility. The announcement raises some obvious questions about timing, cost and payoff. Here is what it could mean for the business and for investors watching the stock.

Shares of Gujarat State Fertilizers & Chemicals Limitedare trading at Rs. 148.27, up 0.92 percent on Wednesday. The stock touched the intraday high of Rs. 149.37 after opening at Rs. 148.00 before slipping to a...