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Deepak Fertilisers jumps after land sale in Dahej

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Capital Market
Last Updated : Jan 14 2020 | 12:31 PM IST

Deepak Fertilisers & Petrochemicals Corporation jumped 4.65% to Rs 114.75 after the company announced sale of non-core industrial land parcel in Dahej, Gujarat.

Deepak Fertilisers announced today, 14 January 2020, that it has divested one of its plots of industrial land in Dahej (Gujarat) as part of the strategy to divest non-core assets, for total transaction value of Rs 99.2 crore.

The deed of assignment was executed in December 2019 and the transfer order from Gujarat Industrial Development Corporation was received accordingly. The company has received the sale consideration and paid all the related charges and its share of transfer fees.

The company said its existing nitric acid plant is situated in Dahej where it continues to have adequate un-utilized area in order to take care of any future expansion.

Shares of Deepak Fertilisers surged 24.86% in the past one month. On the technical front, the stock's RSI (relative strength index) stood at 73.446. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day moving average (DMA) placed at Rs 97.52 and its 200-day moving average (DMA) placed at Rs 108.30, both of which would serve as a support levels in the upcoming trading sessions.

On a consolidated basis, its net profit jumped 40.1% to Rs 24.94 crore on 34.9% decline in net sales to Rs 1,150.74 crore in Q2 September 2019 over Q2 September 2018.

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Deepak Fertilisers and Petrochemicals Corporation is a manufacturer of fertilizers and chemicals.

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First Published: Jan 14 2020 | 12:01 PM IST

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