Deepak Fertilisers zooms 52% in a week; stock nears record high

In the past six months, the stock has soared nearly 190 per cent, against 14 per cent rally in the S&P BSE Sensex

Shares of Deepak Fertilisers & Petrochemicals Corporation continued their upward movement and hit a fresh 52-week high of Rs 474.65 after rallying 6 per cent on the BSE in intra-day trade on Tuesday.

The stock of the commodity chemicals company was trading higher for the seventh straight day. In the past one week, it has zoomed 52 per cent, as compared to 0.81 per cent rise in the S&P BSE Sensex. In the past six months, it has soared nearly 190 per cent, against 14 per cent rally in the benchmark index. The stock was trading close to its record high level of Rs 485, touched on November 3, 2017.

Robust Marketing Services Private Limited, one of the promoters of Deepak Fertilisers, acquired 93,000 equity shares, or 0.09 per cent stake, of the company worth Rs 2.75 crore via open market between June 3, 2021 and June 7, 2021, the exchange data shows. The names of the sellers were not ascertained immediately.

For the January-March quarter (Q4FY21), Deepak Fertilisers reported five-fold jump in consolidated net profit at Rs 116 crore against Rs 23 crore in Q4FY20. The company’s operating revenue grew 21.8 per cent year-on-year (YoY) at Rs 1,575 crore from Rs 1,293 crore in a year ago quarter. EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins improved 809 basis points (bps) to 17.3 per cent from 9.2 per cent.

The company said the demand for LDAN improved in Q4FY21 inline with the improvement seen in the demand for cement and steel related sector in the domestic market. The global specialty chemical value chains moving from China to India boosting nitric acid demand and prices in India, it said.

The Government of India recently announced huge hike in fixed subsidies shall help to neutralize this increase in raw material cost. Thus, avoiding disruption in demand and smoothening of margins over a period. The management said by going forward, the available head room in capacities provides for good growth upside potential in the years ahead.