Low PE, high ROE multibagger stock: This fertiliser & petrochemical company signs two gas purchase agreements with GAIL (India) Ltd!

The shares of the company have a PE of 8.88x whereas the industry PE is 32.1x and an ROE of 27 per cent & an ROCE of 26.3 per cent.

Deepak Fertilizers & Petrochemicals Corp Ltd informed that Performance Chemiserve Limited, a material subsidiary of the company (Deepak Fertilizers & Petrochemicals Corp) has signed two gas purchase agreements with GAIL (India) Limited. Here are the details:

Agreement No – 1: Mid-Term Supply of Natural Gas (NG) with a time period of approx. 3 years effective from September 01, 2023. The size of the order is HH index-linked contract for the supply of 10.15 MN MMBTU of Natural Gas (NG) over approx. 3-year period.

Agreement No – 2: Mid-Term Supply of Natural Gas (NG) with a time period of approx. 3 years effective from September 01, 2023. The size of the order is the Gas contract for the supply of 5.82 MN MMBTU of Natural Gas (NG) over approx. 3-year period, as per GOI domestic gas Policy.

Incorporated in 1979, Deepak Fertilisers and Petrochemicals Corporation Ltd is in the business of fertilisers, agri services, bulk chemicals, mining chemicals and real estate. The company has a market cap of over Rs 7,800 crore and reported positive numbers in its Quarterly Results and annual results.

Today, shares of Deepak Fertilizers & Petrochemicals Corp Ltd surged 3.24 per cent to Rs 623.20 per share with an intraday high of Rs 627 and an intraday low of Rs 608.05. The shares of the company saw a spurt in volume by more than 1.06 times on BSE.

The shares of the company have a PE of 8.88x whereas the industry PE is 32.1x and an ROE of 27 per cent & an ROCE of 26.3 per cent. The stock gave multibagger returns of over 300 per cent in 3 years. Investors should keep an eye on this Mid-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.