IIFL Securities Bullish On Fertiliser Stock, Suggests Buy For 72% Gains, Gave 558.47% In 3 Yrs

IIFL Securities has a "Buy" on Deepak Fertilisers & Petrochemicals Corporation Ltd (DFPCL), a midcap Fertilizer sector stock with a market capitalisation of Rs 8,222.50 apiece. With the given target price the stock is likely to give a robust return of 72% of purchased today at the current market price. Below are the key takeaways from the stock:

Deepak Fertilisers & Petrochemicals Corporation Stock Overview

The stock of DFPCL is currently trading at Rs 641.65 apiece, down 0.88% as compared to its previous close on NSE. The stock recorded the 52 week low on 22 February 2022 at Rs 506.65 apiece, and 52 week high on 21 October 2022 at Rs 1,062 apiece, respectively. 

In a week it gained 1.68%. However, in 1 month it declared 8.12% and in 3 months it declined by 31.36%. In 1 year it gained 8.74%. It gave a maximum 558.47% return in 3 years. Whereas, in 5 years it gave 72.87% positive return. 

IIFL Securities recommends "Buy" for a target price of Rs 1,100/share

According to the IIFL Securities, Deepak Fertilisers delivered a steady 3Q, as spreads of TAN and nitric acid continue to remain elevated. TAN volumes were weak, owing to subdued demand from Non-coal customers, while Fertiliser segment was subdued due to delayed start of the Rabi season. Ammonia expansion project is on track to be commissioned in 1QFY24; the company has secured ~40% of its gas requirement in a 3yr contract with GSPC. "While we do not materially change our Ebitda estimates, we fine-tune FY24-25 EPS estimates modestly. Retain BUY rating, given attractive valuations. Our SOTP-based, TP (rolled forward to Mar'24) moves up to Rs1,100," the broekrage has said.

About The Company

DFPCL is India's top producer of ammonium nitrate (TAN), nitric acid and isopropyl alcohol (IPA) and a niche maker of NPK fertilisers. The company has focused on a strategy of import substitution throughout its history, and consequently has built up dominant market shares in India across all its major chemical products. DFPCL's main manufacturing facility is located at Taloja. The company also has facilities at Dahej, Srikakulam and Panipat.

Disclaimer

The stock has been picked from the brokerage report of IIFL Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.