Buy Deepak Fertilizers & Petr: IIFL Securities's Target Price Rs 1010

IIFL Securities has recommended a 'buy' call on Deepak Fertilizers & Petrochemicals Corporation (DFPCL) with a target price of Rs 1010, citing strong fundamentals and a favorable outlook. As of August 06, the stock was trading at Rs 974, indicating a potential upside of approximately 3.6%. The brokerage firm believes that DFPCL's recent performance and growth prospects, driven by the fertilizer and chemical segments, support a positive outlook for the company.

About Deepak Fertilizers & Petr:

Deepak Fertilizers and Petrochemicals Corporation Limited (DFPCL) is a leading Indian fertilizer and petrochemical company listed on the National Stock Exchange of India (NSE). Founded in 1979, it has a diversified portfolio of products, including urea, diammonium phosphate (DAP), nitrogen, phosphorus, and potassium (NPK) fertilizers, along with industrial chemicals such as nitric acid, ammonium nitrate, and methanol. DFPCL has a strong presence in the domestic market and exports its products to over 50 countries globally. The company has a significant presence in the petrochemical sector, operating a naphtha cracker plant with downstream units to produce a range of petrochemical products, including polyethylene, polypropylene, and intermediate chemicals.

52 Week Price Trend:

Deepak Fertilizers & Petrochemicals (NSE: DEEPAKFERT) has witnessed significant growth in its stock price, currently trading at Rs 974. This represents a substantial increase from its 52-week low of Rs 483.35, indicating a strong performance. The stock has also outperformed its 52-week high of Rs 715. This upward trend reflects investor confidence in the company's fundamentals and its potential for continued growth in the fertilizer and petrochemical sectors.

Stratzy's MOST Analysis:

Deepak Fertilizers has received a BB- rating from Stratzy's MOST framework, indicating that it carries moderate fundamental risks. This rating is derived from an assessment of the company's management, outlook, safety, and trend. Specifically, DEEPAKFERT's strengths include its experienced management team, strong market position, and focus on innovation. However, it faces challenges such as intense competition, regulatory uncertainty, and fluctuations in raw material prices. Overall, the BB- rating suggests that DEEPAKFERT is a relatively stable investment, but investors should be aware of potential risks before investing.

Company's Fundamentals:

Deepak Fertilizers & Petr, with a stock PE ratio of 13.37, is undervalued compared to its peers. It is trading at a price that is 13.37 times its annual earnings per share. The PB ratio of 1.24 indicates that the company's stock is priced 24% above its book value, implying that investors are willing to pay a premium for its assets. The dividend yield of 1.96% provides investors with a steady income stream, making it an attractive investment option for those seeking regular returns.

Fundamental and Technical information provided in this blog were last updated on 06 Aug, 2024

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