Deepak Fertilizers, Petrochemicals shares near one-year high: 4 key strategic moves to drive outlook

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Stock Market Today: Deepak Fertilizers and Petrochemicals shares have gained 9-10% in the last two trading days. Deepak Fertilizers is trading close to the one-year high hit on Tuesday.

The stock closed at $BSE was at 1216 on Wednesday.

Strong second quarter –

Second-quarter performance remained strong, with quarterly net profit from July to September increasing by 237% year-on-year. Although its top line is located at $ $ 2747 grew by 13%, and operating Ebitda grew by 73%. Deepak Fertilizer emphasized that in the second quarter of the past five years, revenue and operating profit before interest, tax, depreciation and amortization (Ebitda) have shown a sustainable growth trend.

Deepak Fertilizers’ bulk fertilizer sales also recorded an annual growth of 83%, recording its highest quarterly sales.

A good monsoon season this year means sales of fertilizers and crop protection products have also been boosted.

4 key strategic actions being taken to drive prospects

Deepak Fertilizers and Petrochemicals Corporation Chairman and Managing Director Saish C. Mehta highlights four key strategic initiatives of the company that will improve growth prospects

1. Deepak Fertilizers and Petrochemicals has aligned its growth plans with the Indian growth story, especially in the coal, cement, real estate and horticulture sectors.

2. Backward integration of ammonia production means improved profit margins while the company is now no longer dependent on imported feedstock.

3. The professional focus has been introduced into crop-based nutritional products and the business is no longer purely a commodity-based business.

4. With NCLT approving the demerger of various businesses including mining chemicals, crop nutrition business and industrial chemicals, the demerger is likely to be completed this year

Additionally, the government’s expectation of five-year anti-dumping duties on IPA is positive and may also benefit margins.

The development of two projects, a technical ammonium nitrate facility and an increase in nitric acid capacity, will also enhance market leadership and support operations.

Disclaimer: The above views and recommendations only represent the views and recommendations of individual analysts or brokerage firms and have nothing to do with Mint. Investors are advised to consult a certified expert before making any investment decisions.

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