IIFL Securities Stock Idea: Buy Deepak Fertilizers & Petr with Target Rs 690

IIFL Securities has a buy call on Deepak Fertilizers & Petrochemicals Corporation (DFPCL) with a target price of Rs 690, indicating a potential upside of 3.3%. The current market price of DFPCL is Rs 667.95. The stock has been in a downtrend since May 2022, but has started to show signs of recovery in recent weeks. The company's financial performance has been strong, with revenue and profits growing in the past few quarters. DFPCL is a leading player in the fertilizer and petrochemical industry in India, and is expected to benefit from the government's focus on increasing agricultural productivity and reducing fertilizer imports.

About Deepak Fertilizers & Petr:

Deepak Fertilizers and Petrochemicals Corporation Limited (DFPCL), listed on the National Stock Exchange (NSE), is a leading Indian manufacturer of fertilizers and industrial chemicals. The company's core businesses include the production and distribution of nitrogenous and phosphatic fertilizers, as well as a range of industrial chemicals, including nitric acid, ammonium nitrate, and oleum. DFPCL operates a network of manufacturing facilities across India, with a focus on the production of high-quality and cost-effective fertilizers for the agricultural sector. The company also has a significant presence in the international market, exporting its products to over 10 countries globally.

52 Week Price Trend:

Deepak Fertilizers & Petrochemicals Corporation Limited (DFPCL) is currently trading at Rs 667.95, within the range of its 52-week high of Rs 715 and low of Rs 483.35. This indicates that the stock has been consolidating in the mid-range of its recent fluctuations. While it has not reached its peak value in the past year, it has also avoided falling to its lowest point. Investors should monitor the stock's performance closely to determine if it breaks out of this range and establishes a new trend.

Stratzy's MOST Analysis:

According to Stratzy's MOST framework, DEEPAKFERT has been assigned a rating of BB-, indicating medium fundamental risks. This assessment is based on an evaluation of the company's management, outlook, safety, and trend (MOST). The rating suggests that while DEEPAKFERT faces some financial or operational vulnerabilities, its overall fundamentals are relatively sound. Investors should proceed with caution and conduct thorough due diligence before making investment decisions.

Company's Fundamentals:

Deepak Fertilizers & Petr (NSE: DEEPAKFERT) has a stock PE ratio of 13.37, indicating that its stock price is 13.37 times its earnings per share. Its PB ratio of 1.24 suggests that its stock price is 1.24 times its book value per share. The dividend yield of 1.96% reflects the annual dividend income investors receive as a percentage of the current stock price, providing insights into the company's dividend policy and yield competitiveness relative to other investment options. These metrics help investors assess the company's valuation, profitability, and dividend-paying capacity, enabling them to make informed investment decisions.

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

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