Shares of Deepak Fertilisers and Petrochemicals Company Restricted prolonged positive factors because the inventory continued to hit higher circuit stage on the BSE from the previous few classes. Deepak Fertilisers shares hit contemporary file excessive stage of ₹838 apiece in Thursday’s buying and selling session because the inventory has been in gaining momentum after its Q1 FY23 earnings introduced final week, and has surged 23% within the final 5 buying and selling classes.
Deepak Fertilisers posted an over three-fold leap in consolidated internet revenue to ₹435.6 crore within the first quarter ended June quarter on robust gross sales as in comparison with ₹130.6 crore within the year-ago interval.
The corporate’s whole revenue elevated by over 59% to ₹3,042 crore within the April-June interval as towards ₹1,908 crore in the identical quarter final 12 months. Bills remained increased at ₹2,392.8 crore throughout Q1 FY23 as in comparison with ₹1,717.5 crore year-on-year (YoY).
Its working EBITDA margins elevated to 24.3% in Q1 FY23 from 15.2% in Q1 FY22. The corporate stated that its strong prime line progress and margin enhancement primarily pushed by the chemical phase.
Deepak Fertilisers’ Chairman and Managing Director (CMD) Sailesh C Mehta stated that long-term progress of the corporate is anticipated to be underpinned by change in product combine, head room availability of extra capacities rising from higher operational administration and de-bottlenecking together with greenfield expansions.
“We assume a wholesome moderation in spreads within the subsequent quarters and a peak internet debt of Rs33bn as at Mar-23. Nonetheless ought to present spreads maintain peak internet debt may very well be decrease as there may very well be Rs3-4bn upside threat to our FY23 EBIDTA estimates. At solely 10x FY24ii P/E, we proceed to seek out the inventory undervalued. Commissioning of the ammonia and TAN initiatives will drive medium time period progress,” stated brokerage home IIFL in a observe on Deepak Fertilisers publish Q1 outcomes.
Deepak Fertilisers and Petrochemicals Company Ltd. (DFPCL) is amongst India’s main producers of fertilisers and industrial chemical compounds. Deepak Fertilisers shares have given multibagger return of greater than 107% in 2022 (YTD) to this point, in the meantime the chemical inventory is up about 72% in a 12 months’s interval.
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Supply: Live Mint