Multibagger Alert: This chemical manufacturer has given returns of 275% in the past year!
The company’s strong earnings and expected commissioning of the ammonia project in early-FY24 is likely to be the key trigger driving up the stock price.
One of India’s leading producers of industrial chemicals and fertilizers, Deepak Fertilisers & Petrochemicals has given investors stellar returns of 275.85% over the last year. The share price of the company stood at Rs 155.05 on February 16, 2021, and since then, it has more than doubled investor wealth.
Pune-based, Deepak Fertilisers is engaged in the manufacture of industrial chemicals and fertilizers. It specializes in manufacturing high-quality chemicals that surpass domestic and international quality standards. The chemicals manufactured can be customized for specific industries and precise applications, thus providing solutions to cater to the exact requirements of its customers. The products cater to various sectors such as pharmaceuticals, agrochemicals, drugs and dye intermediates, refining of precious metals, defence, resin, textile, fertiliser among others.
In Q3, Deepak Fertilisers & Petrochemicals’ revenue grew by 35.14% YoY to Rs 1955.7 crore from Rs 1447.14 crore in Q3FY21. On a sequential basis, the top-line was up by 9.07%. PBIDT (Ex OI) was reported at Rs 351.99 crore, up by 62.35% as compared to the year-ago period and the corresponding margin was reported at 18 per cent, expanding by 302 basis points YoY.
Although margins were under pressure in the fertilizer and IPA businesses due to input cost pressures, this was more than offset by the robust performance from TAN and nitric acid. PAT was reported at Rs 180.61 crore, up by 103.05% from Rs 88.95 crore in the same quarter for the previous fiscal year. The PAT margin stood at 9.24% in Q3FY22 expanding from 6.15% in Q3FY21.
The management of the company has said that the two growth projects – the ammonia backward integration and TAN capacity expansion – are on track to be commissioned by Q1FY24 and Q2FY25 respectively. The company also intends to increase its capacity utilisation of its fertiliser plants and increase its presence across states other than Maharashtra, Gujarat and Karnataka. The company’s strong earnings and expected commissioning of the ammonia project in early-FY24 is likely to be the key trigger driving up the stock price.
At 3 pm on Thursday, the stock of Deepak Fertilisers & Petrochemicals was trading at Rs 563.55, down by 3.29% or Rs 19.20 per share on BSE. The 52-week high of the scrip is recorded at Rs 661.90 and the 52-week low at Rs 152.20 on the BSE
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