Target: ₹627

CMP: ₹513.35

Deepak Fertilizers and Petrochemicals Corporation Ltd. (DFPCL) is among the India’s prominent manufacturer of industrial chemicals and fertilizers. It has a strong presence in technical ammonium nitrate (TAN) i.e. mining chemicals, industrial chemicals and crop nutrition (fertilisers).

It is a multi-product Indian conglomerate which possesses state-of-the-art manufacturing facilities located in four states, namely Maharashtra (Taloja), Gujarat (Dahej), Andhra Pradesh (Srikakulam) and Haryana (Panipat).

DFPCL’s Industrial Chemicals (IC) business segment comprises of Diluted Nitric Acid (DNA) – 8,88,960 MTPA , Concentrated Nitric Acid (CNA) – 2,31,000 MTPA, Iso Propyl Alcohol (IPA) – 70,200 MTPA, Methanol – 1,00,000 MTPA and Liquid CO2 – 72,000 MTPA with an overall aggregate installed operating capacity of about 13,62,160 MTPA.

Its Mining Chemical segment i.e. TAN whose present installed capacity is pegged at about 486,900 MTPA has attained a capacity utilization of nearly 110 per cent in Q3-FY22 led by superlative demand, strong volume growth and ensuing improvement in its product mix.

Going forward, the company is set to draw benefits from the increased TAN off-take, a trend which is likely to continue and sustain as demand for explosives are expected to increase invariably underpinned by bolstering tailwind in infrastructure, power and mining sectors.