Why Deepak Fertilisers is poised to attract investors despite govt hike in DAP fertiliser subsidy
The fertilizer segment accounted for 44% of its revenue and contributed 25% to the total operating profit in the December quarter.
Synopsis
Pune based company introduced premium priced Nitro-phosphorus-Potassium (NPK) under the brand Smartek three years ago, which became popular given its ability to improve the yield by 9-12% for crops such as cotton, sugarcane, paddy, and groundnuts.
ET Intelligence Group: The stock of Deepak Fertilisers & Petrochemicals Corporation has nearly doubled over the past three months following improving financials helped by the premium product portfolio and reduced debt burden. While the government’s latest decision to raise the subsidy on DAP fertilisers may not affect the company much given its focus on the NPK category of fertilisers, the stock may continue to attract investors given the
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