Intraday Spotlight: Deepak Fertilizers hits 5 per cent upper circuit

The company is looking for a complete transformation from commodity to speciality products

Deepak Fertilisers and Petrochemicals Corporation, one of India's leading producers of fertilizers and industrial chemicals was among the top gainers on the S&P BSE 500 intraday today. The stock hit its 5 per cent upper circuit in the early trade session today and has rallied almost 20 per cent this week after recording a strong set of Q3 numbers.  

In its filing with the BSE, the firm reported a topline growth of 35.14 per cent YoY and 9.07 per cent QoQ to Rs 1955.70 crore in Q3FY22. On the operational front, the company recorded a profit of Rs 351.99 crore, up 62.35 per cent YoY and 66.01 per cent QoQ. The corresponding margins expanded to 18 per cent in Q3FY22 from 14.98 per cent in the year-ago period. PAT stood at Rs 180.61 crore in Q3FY22, doubling from Rs 88.95 crore reported at the same time last year.  

On a Q3 concall with investors, the management of the company stated the company has market leadership in all key product segments and a strong demand outlook should further support business growth profitability. It is looking for a complete transformation from commodity to speciality products.

Management also stated that the two growth projects – ammonia backward integration and Technical Ammonium Nitrate (TAN) capacity expansion – are on track to be commissioned as per planned timelines. The ammonia plant is expected to be commissioned by Q1FY24 and the TAN plant is expected to be commissioned by Q2FY25. Besides these, the company also looks to increase capacity utilisation of the fertiliser plants and increase its presence across states other than Maharashtra, Gujarat and Karnataka.  

In the early trade session on Friday, the stock of Deepak Fertilisers and Petrochemicals Corporation hit its 5 per cent upper circuit and trading was halted at Rs 653.95, up by 4.99 per cent or Rs 31.10 per share. The 52-week high of the scrip is recorded at Rs 653.95 and the 52-week low at Rs 152.20 on the BSE.