DEEPAK FERTLISER and Petrochemicals – can it again Rise like Leader??

CMP – 72
MARKET CAP – 650 cr
BOOK VALUE – 237
52wk HIGH/LOW – 169/57
5 Year HIGH/LOW – 500/57
FACE VALUE – 10
DIVIDEND YIELD – 4%

🔷️Stock has seen decent correction from its 5 year highs of 500 to 57.15 Almost 88%. Futher downside only BELOW 57 which is very much unlikely

🔷️Deepak Fertlizer is largest producer of isopropyl Alcohol(IPA)with almost 80% Market share.Isopropyl is used is making hand sanitizer.

🔷️Deepak Fertilisers, the only Indian manufacturer of specialty chemical IPA (isopropyl alcohol), a key ingredient for sanitisers may benefit from rising demand for cleansers amid the Covid-2019 or corona virus outbreak.

🔷️India’s total annual demand for IPA is two lakh MTPA from consumer and pharma sectors, which is expected to have shot up in the past few weeks. Deepak Fertilisers has a capacity of 70,000 tonnes per annum (MTPA) and most of the remaining demand is met through imports.

🔷️Company has also done Greenfield project for expansion.Current situation argues well for company. This can given Multibagger returns in next 3 to 5 years.

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