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India Equity Research I Chemicals & Fertilizers
Initiating coverage
Deepak Fertilizers & Petrochemicals Ltd.
INR:88
Emerging Star
BUY
Price Target (INR): 143
Market Data
Nov 19th, 2009
Shares outs (Cr)
8.8
Equity Cap (Rs. Cr)
88.2
Mkt Cap (Rs. Cr)
774.4
52 Wk H/L (Rs)
111/47
Avg Vol (1yr avg)
1,01,818
Face Value (Re)
10
Bloomberg Code
DFPC IN
Market Info:
SENSEX
16,786
NIFTY
4,989
Price Performance
20
50
80
110
140
170
200
Nov/08Dec/08Jan/09Feb/09Mar/09Apr/09May/09Jun/09Jul/09Aug/09Sep/09Oct/09Nov/09DFPCL
BSE SENSEX
Share Holding pattern (%)
Particulars
Sept-09
Jun-09
Chg
Promoters
42.6
42.6
-
Institutions
10.6
13.0
(2.4)
FII
5.9
3.5
2.4
Public/Others
40.9
40.9
-
Total
100.0
100.0
-
Analysts :
Carrol D’Silva
carrol.dsilval@krchoksey.com
℡ 91-22-6696 5570
Neha Pathak
neha.pathak@krchoksey.com
℡ 91-22-6696 5572
Deepak Fertilizers and Petrochemical Corporation Limited (DFPCL) was incorporated in 1979
as an Ammonia manufacturer and today it is a multi product company with two major
segments, mainly chemicals & fertilizers. DFPCL is one of the leading producers of industrial
chemicals like Ammonia, Methanol, and various grades of Nitric Acid etc. DFPCL is also the
largest producer and market leader of Iso Propyl Alcohol (IPA) in India. From a mere
Ammonia manufacturer it has transformed itself into chemical & fertilizer manufacturer
with manufacturing facilities at Taloja (Maharashtra). It has recently ventured into value
added real estate with a retail mall space of 5.5 lakh sq.ft.
Investment Rationale
Capacity expansion in Technical Ammonium Nitrate (TAN)– Big growth opportunity:
DFPCL is the only manufacturer of porous prilled TAN in India. The total domestic market of
TAN is 6,00,000 MTPA. Company is adding additional 3,00,000 MTPA capacity at its Taloja
plant. Po