Deepak Fertilisers recovers 17% after falling 23% in eight days

The stock moved higher by 17% to Rs 192 after the company said that the Income-tax team has left the company's offices and normal day-to-day business has resumed fully.

Shares of Deepak Fertilisers & Chemicals have moved higher by 17% to Rs 192 per share on the BSE intra-day trade, erasing more-than-half of their fall in the past eight days, after the company said that the Income-tax team has left the company's offices and normal day-to-day business has resumed fully.

The stock of fertiliser firm hit a low of Rs 163, its lowest level since August 19, 2016, on Wednesday in intra-day trade.  After the September quarter (Q2FY19) results and IT raids news, the stock had fallen 23% since November 12, as compared to 0.12% rise in the S&P BSE Sensex till yesterday. The stock had corrected 63% from its 52-week high level of Rs 437 on January 5 this year.

Deepak Fertilisers had reported a 56% drop in net profit at Rs 190 million in Q2FY19 due to rupee depreciation and a significant rise in raw material prices. On November 16, 2018, the company had informed that the Income Tax Department is carrying out search and seizure operations in the company's office premises and plants.

“We would now like to inform you that the Income-tax team has left our offices and our normal day-to-day business has resumed fully. We had fully co-operated with the Tax officials responding to all clarifications they had sought and will continue to do so for their balance queries, if any,” Deepak Fertilisers said on Wednesday, after market hours.

At 12:05 PM; the stock was trading 14% higher at Rs 187 on the BSE, against 0.17% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 3.81 million shares changed hands on the BSE and NSE.

Meanwhile, Madras Fertilizers, Nagarjuna Fertilizers and Chemicals, Zuari Agro Chemicals, Fertilizers & Chemicals Travancore (FACT) and Rama Phosphates are other fertilizer stocks, up in the range of 5% to 10% on the BSE.