Synopsis:
Deepak Fertilisers and Petrochemicals Corporation is in focus after Emkay has initiated coverage on the stock projecting an upside of 47 percent.
The shares of this leading company engaged in the business of fertilisers, agri services, bulk chemicals, mining chemicals, and real estate are in focus after Emkay Global expects the share to rise by a staggering 47 percent. In this article, we will dive more into the details of it.
With a market capitalization of Rs 17,196 crore, the shares of Deepak Fertilisers and Petrochemicals Corporation Ltd closed at Rs 1,362 per share, down 3.95 percent from its previous day closing price of Rs 1,418 per share. Over the past five years, the stock has delivered a multibagger return of 838 percent, outperforming NIFTY 50’s return of 100 percent.
Analyst Comments
Leading domestic brokerage house, Emkay Global, has assigned a “Buy” call on the stock and has fixed a target price of Rs 2,000 per share, signalling an upside potential of 47 percent from its current market price.
Brokerage house Emkay cited that it feels positive about Deepak Fertiliser since it dominates in mining and industrial chemicals, along with water-soluble fertilisers. The offerings line up nicely with India’s expanding farms and building projects, which create steady future gains. The company is also going to double its specialty product portfolio capacity expansion to drive better profitability.
It also added that Deepak Fertilisers is moving away from standard goods toward more profitable niche items. Expansion work is underway in crucial spots, for instance, the expansion of technical ammonium nitrate (TAN) in Gopalpur, or nitric acid production at Dahej. Because of improved rates from the ammonia deal with Equinor, combined with these upgrades, EBITDA should rise by 50 percent from FY26 to FY28.
Deepak Fertiliser’s reshaped operations now run through two separate units – Deepak Mining Solutions Ltd (DMSL) handles mining chemicals, while Mahadhan Agritech Ltd (MAL) focuses on crop nutrients. The official demerger is expected within 2–3 years. According to Emkay, demerging them could boost their worth, letting each stand out more clearly in the eyes of investors.
Q2 Highlights
Deepak Fertilisers reported a core revenue of Rs 3,006 crore in Q2 FY26, a growth of 9 percent as compared to Rs 2,747 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 13 percent from Rs 2,659 crore.
Regarding its profitability, it reported a net profit of Rs 214 crore in Q2 FY26, which largely remained flat compared to its same quarter of the previous year. However, on a quarter-on-quarter basis, it recorded a decline of 12 percent from Rs 244 crore.
The stock delivered an ROE and ROCE of 15.56 percent and 15.67 percent respectively, and is currently trading at a low P/E of 18.45x as compared to its industry average of 22.76x.
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.
Thus, Deepak Fertilisers seems set to chase solid growth, thanks to its grip on mining and chemical industries, plus a move into pricier niche products. New output boosts in TAN and nitric acid might push profits up sharply, especially with good rates locked in via the Equinor ammonia deal. On top of that, splitting off its farming and minerals arms could spark hidden gains, but only if things go smoothly and demand stays firm.
Written by Satyajeet Mukherjee
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