Deepak Fertilisers in consolidation mode - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Deepak Fertilisers in consolidation mode

Sep 2, 1999

According to newspaper reports, Deepak Fertilisers & Petrochemicals Corporation Limited (Deepak) has bought a second-hand nitric acid plant from Ireland for Rs 70 m. It has simultaneously planned to increase its acrilo nitrile phosphate (ANP) - a bulk fertiliser, capacity from 765 tonnes to 1,100 tonnes by December 1999. Growing demand for the product has necessitated the capacity expansion. The company plans to further increase ANP capacity to 2,000 tonnes once the new fertiliser policy is introduced. The moves appear to be an attempt by the company to consolidate its presence in the bulk fertiliser business,

Deepak's (FY99 turnover: Rs 5.1 bn) principal activity is the manufacture of anhydrous liquid ammonia, which find use as a heavy chemical as well as a fertilizer. Besides, it also manufactures CNA, DNA, Methanol, LDAN and ANP range of fertilisers. The company has been reporting improved performances over the last 3 years. In fact, it posted an impressive 29% growth in turnover to Rs 2.3 bn in the first five months of the current financial year.

The nitric acid plant, though second-hand, will not come cheap for the company. In addition to the purchase price of Rs 70 m, Deepak will have to incur Rs 300 m towards the cost of installation, erection and customs duties of the plant. Over the next few months, Its profitability may come under pressure as Oil & Natural Gas Corporation (ONGC) has curtailed the supply of natural gas to the company, forcing it to use naphtha a more expensive alternative. Weak methanol prices are also a cause for concern.

The industry is waiting for the new fertiliser policy with bated breath. Analysts believe that the blue print of the policy is ready and it will be implemented when the new government is sworn at the Centre. They expect a few positives for the industry in the new policy.

Equitymaster requests your view! Post a comment on "Deepak Fertilisers in consolidation mode". Click here!

  

More Views on News

DEEPAK FERTILISERS 2018-19 Annual Report Analysis (Annual Result Update)

Oct 18, 2019 | Updated on Oct 18, 2019

Here's an analysis of the annual report of DEEPAK FERTILISERS for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of DEEPAK FERTILISERS. Also includes updates on the valuation of DEEPAK FERTILISERS.

DEEPAK FERTILISERS Announces Quarterly Results (1QFY20); Net Profit Down 70.8% (Quarterly Result Update)

Aug 21, 2019 | Updated on Aug 21, 2019

For the quarter ended June 2019, DEEPAK FERTILISERS has posted a net profit of Rs 109 m (down 70.8% YoY). Sales on the other hand came in at Rs 11 bn (down 49.6% YoY). Read on for a complete analysis of DEEPAK FERTILISERS's quarterly results.

DEEPAK FERTILISERS Announces Quarterly Results (4QFY19); Net Profit Down 83.4% (Quarterly Result Update)

Jun 3, 2019 | Updated on Jun 3, 2019

For the quarter ended March 2019, DEEPAK FERTILISERS has posted a net profit of Rs 64 m (down 83.4% YoY). Sales on the other hand came in at Rs 13 bn (down 32.1% YoY). Read on for a complete analysis of DEEPAK FERTILISERS's quarterly results.

More Views on News

Most Popular

A Critical Update on the Market (Fast Profits Daily)

Mar 30, 2021

In this video, I'll tell you why I am recommending caution in the market at this time.

My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)

Mar 31, 2021

A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.

My Stock Trading Strategy (Fast Profits Daily)

Mar 31, 2021

In this video I'll show you exactly how I go about picking stocks for trading.

What You Need to Find Hundred Baggers (Profit Hunter)

Mar 30, 2021

100 baggers of the last decade share this common trait. Here's how to use it to nail future multibaggers.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

DEEPAK FERTILISERS SHARE PRICE


Apr 9, 2021 (Close)

TRACK DEEPAK FERTILISERS

  • Track your investment in DEEPAK FERTILISERS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON DEEPAK FERTILISERS

DEEPAK FERTILISERS 8-QTR ANALYSIS

COMPARE DEEPAK FERTILISERS WITH

MARKET STATS