Best Stocks to Buy Today : IIFL Securities's call on Deepak Fertilizers & Petr - June 20

On June 20, IIFL Securities initiated coverage on Deepak Fertilizers & Petrochemicals Corporation (DFPCL) with a "buy" rating and a target price of Rs 690, indicating an upside potential of around 3.3%. The brokerage cited the company's strong balance sheet and healthy cash flows, as well as its potential to benefit from the government's focus on promoting domestic chemical production. DFPCL is a leading manufacturer of fertilizers, industrial chemicals, and petrochemicals in India. Its shares closed at Rs 667.95 on the Bombay Stock Exchange on June 20.

About Deepak Fertilizers & Petr:

Deepak Fertilizers & Petrochemicals Corporation Limited (DFPCL) is a leading Indian multinational company headquartered in Pune, Maharashtra. DFPCL is primarily engaged in the manufacturing, marketing, and distribution of fertilizers, industrial chemicals, and specialty products. It operates through four business segments: Fertilizers, Bulk Chemicals, Fine Chemicals, and Technical Grade Urea. The company's product portfolio includes a wide range of fertilizers, including urea, di-ammonium phosphate, and nitrogen phosphorus potassium. DFPCL also produces various industrial chemicals, such as nitric acid, ammonium nitrate, and sodium nitrite, and specialty products like pyridine and polyvinyl chloride. The company has a strong presence in India and exports its products to over 40 countries worldwide.

52 Week Price Trend:

Currently trading at Rs 667.95, Deepak Fertilizers & Petrochemicals (DEEPAKFERT) has been oscillating within a wide range over the past 52 weeks. Its 52-week high of Rs 715 indicates potential upside, while the 52-week low of Rs 483.35 suggests a downside risk. Investors may consider the company's fundamentals, market trends, and overall economic outlook before making investment decisions. The stock's proximity to its 52-week high suggests that it may have limited room for further appreciation in the near term.

Stratzy's MOST Analysis:

Deepak Fertilizers Limited's (DEEPAKFERT) BB- rating from Stratzy's MOST framework indicates medium fundamental risks. The framework's assessment considers Management, Outlook, Safety, and Trend. A BB- rating suggests that DEEPAKFERT has some weaknesses in certain areas, such as management effectiveness or industry outlook, but overall has a sound fundamental position. The company's financial performance, risk management practices, and growth prospects contribute to its medium-risk profile.

Company's Fundamentals:

Deepak Fertilizers & Petr (DEEPAKFERT) trades on the National Stock Exchange (NSE) with a trailing 12-month Price-to-Earnings (PE) ratio of 13.37, indicating the price investors are willing to pay per unit of earnings. The Price-to-Book (PB) ratio of 1.24 suggests that the market values the company's assets at a premium compared to its liabilities. Moreover, DEEPAKFERT offers a Dividend Yield of 1.96%, which represents the percentage of the share price paid out as dividends to shareholders, providing investors with a potential income stream.

Fundamental and Technical information provided in this blog were last updated on 20 Jun, 2024

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