Tuesday, July 8, 2025
  • Home
  • National
  • International
  • Movies
  • Technology
  • Business
  • Fitness
  • Lifestyle
  • Punjab
  • Contact us
No Result
View All Result
No Result
View All Result
Home Business

Stock to buy: Deepak Fertilizers share price up 48% YTD; analysts see 52% further jump in fertiliser stock

by author
July 1, 2022
in Business
0
Stock to buy: Deepak Fertilizers share price up 48% YTD; analysts see 52% further jump in fertiliser stock
0
SHARES
32
VIEWS
Share on FacebookShare on Twitter


Deepak Fertilizers share price has jumped 48 per cent so far this year, despite steep correction in benchmark indices on stock markets. The stock may rally around 52 per cent more, according to analysts at IIFL Securities. The brokerage maintains a positive outlook on the industrial and agricultural chemicals manufacturer stock as, at 10x FY23ii P/E, it continues to find valuations attractive. Deepak Fertilizers’ management recently reiterated that the company’s ammonia and ammonium nitrate (TAN) expansion projects are on track. Also, peak debt levels may not be as high as initially anticipated due to the healthy cash generation. Deepak Fertilizers is India’s top producer of TAN, nitric acid and isopropyl alcohol (IPA) and a niche maker of NPK fertilisers.

Stock Rating: Buy
Target price: Rs 900, Upside 52%, Horizon: 12 months

Analysts at IIFL securities believe that while nitric-acid realisations and spreads are expected to sustain in FY23, TAN spreads may soften. Thus, EPS growth in FY23 is expected to be muted. However, the company is likely to deliver considerably healthy growth in FY24 and FY25, as its key capex projects are commissioning then. Additionally, Ammonia prices sustaining at current levels could further increase growth and FY24/25 Ebitda. “By FY26, when both capex projects should be running at optimal utilisation, we expect EPS to approach Rs 85-90 levels, they said. Even a modest 10x P/E by then would imply a Mar-2025 target price of ~Rs 1,020-1,080 (and potentially higher, if DFPCL switches to the new tax regime).

Investment Rationale:

Expansion projects on track: The ammonia and TAN expansion projects are on track, to be commissioned in 1QFY24 and 2QFY25, respectively. While ammonia prices have corrected in the last month, benefits from the ammonia expansion will be much more than envisaged, should ammonia prices sustain at current levels, the brokerage noted. Debt funding is also likely to be lower than estimated due to the healthy cash flows generated in FY22. Elevated nitric-acid spreads will help sustain cash flows.

Share Market Today, Share Market Live

Share Market LIVE: Sensex tanks 500 points, Nifty nears 15600; Reliance Industries shares dive more than 5%

stocks to watch, stocks in focus, reliance ril, bharti airtel

Reliance, Bharti Airtel, HUL, SBI Card, UPL, Lupin, SAIL, Maruti Suzuki stocks in focus on 1 July 2022

Share Market Today, Share Market Live

Share Market LIVE: Sensex tanks 500 points, Nifty nears 15600; Reliance Industries shares dive 3%

reliance shares, reliance share price, ril share price

RIL share price tanks 7% on excise duty hike on fuel, govt slaps additional tax on domestically produced crude

Nitric-acid demand continues to be healthy: Improved realisation and demand of downstream derivatives continues to uphold demand of nitric acid. The Aarti Industries management believes that availability of nitric acid will improve in 2HFY23 and has also stated intentions to set up a concentrated nitric-acid plant. However, it will still have to purchase weak nitric acid from the open market. GNFC management has stated that off offtake of nitric acid remains robust.

TAN spreads may face near-term headwinds: Deepak Fertilizers management expects TAN spreads could be at risk in the near term as Russian supplies re-enter the market. Thus, though nitric-acid spreads remain elevated, benefits may likely be offset by reduced spreads of TAN. “While we expect FY23 growth to be muted, the growth phase is likely to start in FY24, as the two big capex projects are capitalised,” said analysts.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)





Source link

Related posts

EXCLUSIVE – Crypto giant Binance controlled ‘independent’ US affiliate’s bank accounts

EXCLUSIVE – Crypto giant Binance controlled ‘independent’ US affiliate’s bank accounts

June 5, 2023
Why investing just to save tax may be bad for you

Why investing just to save tax may be bad for you

June 5, 2023
Previous Post

We want to be a more global company today, says Sudarshan Venu, TVS Motor MD, Auto News, ET Auto

Next Post

From Modi Governments’ Plastic Ban to Sustainable Substitutes-The Blue Print for a Safer and Healthier India

Related Posts

EXCLUSIVE – Crypto giant Binance controlled ‘independent’ US affiliate’s bank accounts
Business

EXCLUSIVE – Crypto giant Binance controlled ‘independent’ US affiliate’s bank accounts

June 5, 2023
Why investing just to save tax may be bad for you
Business

Why investing just to save tax may be bad for you

June 5, 2023
Share Market outlook today: Nifty, Bank Nifty may to gain on positive global cues; check support, resistance
Business

Share Market outlook today: Nifty, Bank Nifty may to gain on positive global cues; check support, resistance

June 5, 2023
Startup group of G20 calls for $1-trillion commitment
Business

Startup group of G20 calls for $1-trillion commitment

June 5, 2023
DHARAKSHA: Converting rice straw stubble to sustainable packaging material
Business

DHARAKSHA: Converting rice straw stubble to sustainable packaging material

June 4, 2023
Amrita Hospital, Kochi opens two new research centres; announces Rs 65 Crore for charitable care
Business

Amrita Hospital, Kochi opens two new research centres; announces Rs 65 Crore for charitable care

June 4, 2023
Next Post
From Modi Governments’ Plastic Ban to Sustainable Substitutes-The Blue Print for a Safer and Healthier India

From Modi Governments’ Plastic Ban to Sustainable Substitutes-The Blue Print for a Safer and Healthier India

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

IPL 2024: ‘Team Spirit’ Reigns Supreme Behind RCB’s Inspirational Comeback This Season, Believes Rajat Patidar | Cricket News

IPL 2024: ‘Team Spirit’ Reigns Supreme Behind RCB’s Inspirational Comeback This Season, Believes Rajat Patidar | Cricket News

1 year ago
Oppo Reno6 Pro 5G: Possibly the best camera phone around

Oppo Reno6 Pro 5G: Possibly the best camera phone around

4 years ago
IPL 2019 matches were allegedly fixed ‘based on inputs’ from Pakistan, CBI begins probe | Cricket News

IPL 2019 matches were allegedly fixed ‘based on inputs’ from Pakistan, CBI begins probe | Cricket News

3 years ago
NSA Ajit Doval To Hold Talks With Chinese Foreign Minister Wang Yi Today In Beijing | World News

NSA Ajit Doval To Hold Talks With Chinese Foreign Minister Wang Yi Today In Beijing | World News

7 months ago

BROWSE BY CATEGORIES

  • Animals
  • Architecture
  • Automobiles
  • Business
  • Culture
  • Fitness
  • International
  • Lifestyle
  • Movies
  • National
  • Sports
  • Technology
  • Travel

BROWSE BY TOPICS

Architecture culture Fitness indian architecture indian culture indian culture and heritage indian news lifestyle national news Technology technology news Travel travelling

About Us

Awaj Ludhiana Ki

Address

2667/3, Kishore Nagar, Tajpur & Jail Road, Ludhiana – 141008

Recent News

  • From Slave To Superpower – How The U.S. Rose From British Colony To Global Warlord
  • UK F-35B Jet Under Repair In Kerala, UK Grateful To India For Support
  • Why Argentina Collapsed 7 Times? PM Modi’s Visit Revives The Story Of A Fallen Nation That Was Richer Than Europe | World News
  • Indians In UAE Gave Up Citizenship, Paid Big For ‘Second Passport’ – Now The West Is Locking Them Out | World News
  • Aamir Khan to be honoured at IFFM 2025 with retrospective and Sitaare Zameen Par spotlight : Bollywood News

Category

  • Animals
  • Architecture
  • Automobiles
  • Business
  • Culture
  • Fitness
  • International
  • Lifestyle
  • Movies
  • National
  • Sports
  • Technology
  • Travel

Search

No Result
View All Result

Email

[email protected]

  • About
  • Advertise
  • Careers

Copyright © 2019 Awaj Ludhiana Ki or it's affiliates | Website by Awaj Ludhiana Ki Team

No Result
View All Result
  • Home
  • Contact us
  • Animals
  • Architecture
  • Automobiles
  • Business
  • Culture
  • Fashion
  • Fitness
  • Food
  • International
  • Lifestyle
  • Movies
  • National
  • Sports
  • Technology
  • Travel
  • Punjab

Copyright © 2019 Awaj Ludhiana Ki or it's affiliates | Website by Awaj Ludhiana Ki Team

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In