Ashika Stock Broking
Deepak Fertilisers (Buy)
Tartet: ₹282
CMP: ₹239.50
We initiate our coverage on Deepak Fertilisers and Petrochemicals Corporation (DFPC). The company has capacities in both chemical and fertiliser segments, manufacturing Isopropyl Alcohol, Nitric Acid (concentrated & dilute), methanol, liquid CO2, ammonia, technical ammonium nitrate, bentonite sulphur, NP and NPK fertilisers.
Amongst the industrial chemical segment, DFPC is the second largest manufacturer of nitric acid in South East Asia and the largest manufacturer of nitric acid and IPA in India.
The company is the only manufacturer of solid TAN in India and the only producer of explosive grade low density porous prilled Ammonium Nitrate in India. In the crop nutrition segment, DFPC is the only manufacturer and marketer of prilled Nitro Phosphate fertiliser in India as well as the largest manufacturer and marketer of Bentonite Sulphur along. The firm is a market leader in speciality and water soluble fertilisers in India. The company is in the process of doing capex for backward integration project to produce Ammonia in-house which will reduce its dependence on imported raw materials like Ammonia. The company’s products are exported to 29 countries across six continents. CNB offers products like nitro phosphate fertilisers, NPK fertilisers (Smartek) and water soluble fertilisers and has a strong presence in Maharashtra, Karnataka and Gujarat.