Liladhar puts 'accumulate' on Deepak Fertiliser & Petrochemical
Broking house Prabhudas Lilladher has recommended ‘accumulate’ on Deepak Fertiliser and Petrochemical on account of sustainable margin expectation and timely expansion plan.
Deepak Fertiliser
cmp: Rs 58
target price: Rs 80
Broking house Prabhudas Lilladher has recommended ���accumulate��� on Deepak Fertiliser and Petrochemical on account of sustainable margin expectation and timely expansion plan. In the third quarter of financial year (FY) 2009, prices in the industrial chemical segments have fallen by 15-20%. However, this was set-off by the fallen raw material prices.
The broking house thus says that margins are therefore sustainable. It further adds: ���Capex plans of Rs 800 crore are being executed on time. Expansion plan for Ammonium Nitrate (AN) is on a trial run and will be operational by the end of January 2009.
Capex plan of Diluted Nitric Acid (DNA) and ammonia storage tank in JNPT will be onstream by the first quarter of FY10.��� It says at the current market price, the stock is trading at 3.5 times at its consolidated FY10 Expected Earning Per Share of nearly Rs 16. ���We recommend ���accumulate��� for the stock with target price of Rs 80,��� it adds.
cmp: Rs 58
target price: Rs 80
Broking house Prabhudas Lilladher has recommended ���accumulate��� on Deepak Fertiliser and Petrochemical on account of sustainable margin expectation and timely expansion plan. In the third quarter of financial year (FY) 2009, prices in the industrial chemical segments have fallen by 15-20%. However, this was set-off by the fallen raw material prices.
The broking house thus says that margins are therefore sustainable. It further adds: ���Capex plans of Rs 800 crore are being executed on time. Expansion plan for Ammonium Nitrate (AN) is on a trial run and will be operational by the end of January 2009.
Capex plan of Diluted Nitric Acid (DNA) and ammonia storage tank in JNPT will be onstream by the first quarter of FY10.��� It says at the current market price, the stock is trading at 3.5 times at its consolidated FY10 Expected Earning Per Share of nearly Rs 16. ���We recommend ���accumulate��� for the stock with target price of Rs 80,��� it adds.
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