Deepak Fertilizers & Petrochemicals Corp Ltd Share Price – NSE /  BSE

Chemicals, Small Cap

The equity benchmarks pared some losses and traded near the flatline in mid-morning trade. The Nifty traded below the 24,450 mark. Pharma shares extended losses for the second trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 116.24 points or 0.15% to 80,258.88. The Nifty 50 index lost 23.50 points or 0.10% to 24,443.35.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.30% and the S&P BSE Small-Cap index added 1.40%.

The market breadth was strong. On the BSE, 2,873 shares rose and 796 shares fell. A total of 123 shares were unchanged.

Economy:

The Indian diaspora's confidence in the Indian economy has soared, as evidenced by the significant increase in Non-Resident Indian (NRI) deposits. According to the Reserve Bank of India's (RBI) latest monthly bulletin, inflows into NRI deposit schemes surged to $7.82 billion in the period of April-August 2024, more than double the $3.74 billion recorded in the same period last year.

Both dollar-denominated (FCNR(B)) and rupee-denominated (NRE(RA)) deposits witnessed substantial growth.

Among the various NRI deposit schemes, Foreign Currency Non-Resident (FCNR) deposits witnessed the highest inflow, attracting $3.47 billion during the period, compared to $1.55 billion in the corresponding period a year ago. These deposits, denominated in foreign currencies, offer security against currency fluctuations and provide attractive returns.

Non-Resident External (NRE) deposits, which are rupee-denominated accounts, also saw a significant increase, with inflows of $2.51 billion during this period, compared to an inflow of $868 million in the corresponding period a year ago.

Non-Resident Ordinary (NRO) deposits, which are also rupee-denominated, also saw inflows worth $1.84 billion from April泡ugust, 2024, compared to $1.32 billion during the same period a year ago.

This surge can be attributed to factors such as attractive returns in Indian markets, strong economic fundamentals, and a more stable domestic monetary policy environment compared to many global economies.

With total outstanding NRI deposits reaching $158.94 billion as of August 2024, the Indian diaspora's continued trust in the country's economic prospects is evident.

Buzzing Index:

The Nifty Pharma index fell 0.70% to 22,443.75. The index slipped 1.80% in the past two trading session.

Cipla (down 3.78%), Torrent Pharmaceuticals (down 2.32%), Dr Reddys Laboratories (down 1.66%), Alkem Laboratories (down 1.57%), Sun Pharmaceuticals Industries (down 1.15%), Zydus Lifesciences (down 0.9%), Lupin (down 0.78%), Ipca Laboratories (down 0.56%), Laurus Labs (down 0.54%) and Biocon (down 0.44%) edged higher.

On the other hand, Mankind Pharma (up 3.91%) ,Natco Pharma (up 2.15%) and Divis Laboratories (up 1.17%) edged higher.

Stocks in Spotlight:

Deepak Fertilizers & Petrochemicals Corporation declined 1.24%. The company’s consolidated surged 237.38% to Rs 214.07 crore on 13.31% increase in revenue from operations to Rs 2,746.72 crore in Q2 FY25 over Q2 FY24.

Prestige Estates Projects added 2.79%. The company reported 77.41% decrease in consolidated net profit to Rs 192.20 crore in Q2 FY25 as against Rs 850.90 crore recorded in Q2 FY24. Revenue from operations grew 3.04% year on year (YoY) to Rs 2,304.40 crore in the quarter ended 30 September 2024.

Paras Defence and Space Technologies was locked 5% upper circuit after the company announced that it has received an order from Opto Electronics Factory valued at approximately Rs 42.05 crore. The contract is for the supply of 5 types of electronic control sub-systems used in thermal imaging fire control system (TIFCS) delivered by OLF to Indian Armed Forces.

Global Markets:

Asian stocks fell on Wednesday as risk appetite was quashed by anticipation of a tight U.S. presidential election and a barrage of key economic readings this week.

Japanese markets remained the outliers, extending recent gains as heightened political uncertainty in the country fueled more bets that the Bank of Japan will not raise interest rates further.

In the US, indices marked a mixed close on Tuesday, as investors piled into technology stocks, but avoided most other sectors. The NASDAQ Composite rose 0.8% to a record-high close of 18,717.58 points, while the S&P 500 rose 0.2% to 5,832.92 points. But the Dow Jones Industrial Average lagged, falling 0.4% to 42,233.05 points.

Sentiment was underpinned by strong earnings from Alphabet Inc. Tech majors Meta Platforms Inc and Microsoft Corporation are set to report on Wednesday, while Amazon.com Inc and Apple Inc are due on Thursday.

A slew of key U.S. economic readings are also due in the coming days, while the Federal Reserve is set to meet next week. Third-quarter gross domestic product data is due on Thursday, while PCE price index data- the Federal Reserve’s preferred inflation gauge- and nonfarm payrolls data are due on Friday. The three readings are likely to factor into the outlook for interest rates, and come before a Fed meeting next week where the central bank is widely expected to cut rates by a smaller 25 basis points.

Powered by Capital Market - Live News

Profit before tax (PBT) jumped 155.78% to Rs 298.67 crore in Q2 FY25 as compared with Rs 116.77 crore in Q2 FY24.

Operating EBITDA increased 73% YoY to Rs 494 crore in Q2 FY25. EBITDA margin stood at 18% in Q2 FY25 as against 12% in Q2 FY24.

In Mining Chemical, the company’s premium product LDAN's sales volume soared by 16% YoY. Overall sales volume was down by 21% YoY in Q2 due to a planned shutdown and lean seasons due to monsoon.

The company expects the mining and infrastructure to pick up post monsoon as demand for power (coal), cement & steel is expected to increase thereby providing robust support for (Technical Ammonium Nitrate) TAN demand.

In Industrial Chemicals, nitric acid volumes was marginally down by 1% on YoY basis and up by 13% on QoQ basis.

Isopropyl Alcohol (IPA) volumes experienced a 10% YoY decline due to process constraints and a plant shutdown. However, the recent implementation of an anti-dumping duty (ADD) at $ 217 per metric ton for a period of five years is anticipated to enhance both demand and pricing moving forward.

On the outlook front, the company said that for nitric acid, the demand and margins are expected to be stable over the next few quarters. Propylene-based IPA demand and margins are expected to be stable and improve following the implementation of the ADD on Chinese suppliers over few quarters.

In Crop Nutrition business (Fertilisers), sales volume of manufactured bulk fertilizer market jumped 83% year on year to 268 KMT during the quarter, driven by improved demand from above-average rains, which led to 102% Kharif crop sowing and positive market sentiment across all regions.

Sales volume of Croptek surged to 37 KMT, reflecting a 70% YoY growth, with continued focus on providing crop-specific solutions for targeted crops, including cotton, soybean, sugarcane, corn, grapes, pomegranate, and banana. Sale of specialty fertilizer Bensulf was 9 KMT, up 7% YoY.

Net Debt to EBITDA ratio improved to 1.64x from 2.66x.

Sailesh C. Mehta, chairman & managing director, said, “DFPCL has shown impressive performance in Q2 FY25, achieving a 13% growth in revenue. This growth was primarily driven by the Crop Nutrition business, which experienced an 18% YoY increase in revenue, while the Chemical business grew by 8% YoY despite a lean quarter for the chemical sectors. Fertilizer and Chemical businesses acted as a natural hedge, enabling the company to deliver consistent and improved performance

We are actively working on the execution of the TAN Project and the Nitric Acid Project in Gopalpur and Dahej, respectively, to capitalize on future growth.”

Meanwhile, the company’s chief financial officer (CFO), Deepak Rastogi announced resignation. He will hold office of president & chief financial officer of the company till 30th November, 2024 and his last working day will be 14th January, 2025.

Further, the company’s board approved the appointment of Subhash Anand who is currently president – strategy as president and chief financial officer of the company in place of Deepak Rastogi with effect from 1st December, 2024.

Deepak Fertilisers and Petrochemicals Corporation is a manufacturer of fertilizers and chemicals.

The scrip hit an all-time high at Rs 1,335 in intraday today.

Powered by Capital Market - Live News

Net profit of Deepak Fertilizers & Petrochemicals Corp rose 249.39% to Rs 210.09 crore in the quarter ended September 2024 as against Rs 60.13 crore during the previous quarter ended September 2023. Sales rose 13.31% to Rs 2746.72 crore in the quarter ended September 2024 as against Rs 2424.16 crore during the previous quarter ended September 2023.

Powered by Capital Market - Live News

Deepak Fertilizers & Petrochem. Corp. will hold a meeting of the Board of Directors of the Company on 29 October 2024.

Powered by Capital Market - Live News