Deepak Fertilisers & Petrochemicals Corporation Ltd: (BSE: 500645; NSE: DEEPAKFERT)
Brief Summary/Highlights of the Article
Deepak Fertiliser and Petrochemicals Corporation Limited (DFPCL) is the fourth-largest manufacturer and supplier of industrial chemicals like methanol, nitric acid, ammonium nitrate and micronutrient fertiliser. It is the only company in India to manufacture isopropanol (IPA) and technical ammonium nitrate (TAN), and one of the largest producers of nitric acid and AN in South-East Asia.
Strength/Number of Employees: 51-200
Address: Opp. Golf Course, Shastri Nagar, Yerwada, Pune 411 006, India
Phone: +91 20-6645 8000, Fax +91 20-2668 3727
Deepak Fertilisers & Petrochemicals Corporation Ltd.
Set up in 1979 as an Ammonia manufacturer, DFPCL today is a publicly listed, multi-product Indian conglomerate with an annual turnover of over USD 300 million with a multi-product portfolio spanning industrial chemicals, bulk and specialty fertilisers, farming diagnostics and solutions, technical ammonium nitrate, mining services and consulting and value-added real estate. Globally it has strong and direct relationship with over 600 industrial customers with a distribution network of over 50 channel partners across India and exports to 30+ countries. (Source www.dfpcl.com )
Manufacturer of Nitro Phosphate fertilizers and specialty fertilizers like Sulphur Bentonite
This is a short term Trading Buy call. Company is currently trading lower than its Book value price. EPS of the company per FY 11-12 is 24.15 and that is cash EPS too.
The stock is at long term trend line support and we believe that it has completed a cycle. It can rise from current levels. It has taken some support now at this trend line. If this support level, say, 100 around is broken then stock can fall cheaply as well. So below 100 if this stock closes then one can reverse the position from buy to short.
Buy at CMP 114 for a minimum target of Rs 140 – 157 and a keep a stop loss of 100 in 1-2 months.