Synopsis:
Shares of Deepak Fertilisers & Petrochemicals Corporation Ltd rose by nearly 6% on Tuesday after the company announced a significant Rs 1,200 crore contract with Petronet LNG Limited.
The shares of Deepak Fertilizers & Petrochemicals Corp Ltd are in focus after signing a 1,200 crore long-term regasifying contract with Petronet LNG. In this article, we will discuss more about the details.
With a market capitalization of Rs 20,480 crore, the shares of Deepak Fertilizers & Petrochemicals Corp are currently trading at Rs 1,621 per share, down by 8.8 percent from its 52-week high of Rs 1,776.95 per share. Over the past five years, the stock has delivered a robust return of 1,337 percent.
Deepak Fertilisers signed a five-year agreement with Petronet LNG Limited to regasify (converting Liquefied Natural Gas back into its gaseous form) around 25 TBTUs of Liquefied Natural Gas (LNG) each year.
Most of this regasification will take place at Petronet’s Dahej terminal, and the gas produced will be utilised in the manufacturing processes of DFPCL and PCL in Taloja. The contract is valued at Rs. 1,200 crore, with the possibility of an extra 20 percent investment for the agreement, depending on future needs.
Financial Highlights
The company reported a revenue of Rs 10,274 crore, up by 18 percent from its FY24 revenue of Rs 8,697 crore. Additionally, the company reported a net profit growth of 107 percent to Rs 945 crore in FY25 from Rs 457 crore in FY24.
The stock delivered an ROE and ROCE of 16.03 percent and 16.02 percent respectively and is currently trading at a P/E of 21.84x as compared to its industry peers of 29.87x.
Deepak Fertilisers and Petrochemicals Corporation Limited is a key player in India’s fertiliser and industrial chemicals market. The company operates across several segments, including chemicals, bulk fertilisers, and real estate.
Their product lineup features ammonia, methanol, nitric acid, TAN, and a variety of fertilisers such as DAP and potash. Additionally, they’re involved in agricultural products, mining consultancy, and the construction of malls and design centres.
Written by Satyajeet Mukherjee
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