(Reuters) -India’s Deepak Fertilisers and Petrochemicals posted a 24.4% rise in quarterly profit on Tuesday, as demand for its crop nutrition products remained healthy.
The company’s consolidated net profit rose to 2.43 billion rupees ($28 million) in the first quarter, from 1.96 billion rupees a year earlier.
The company’s fertilizers and chemicals segments made up nearly half of overall revenue.
The segments clocked 28.23% and 7.7% growth in revenue, respectively.
For further earnings highlights, click [here]
KEY CONTEXT
Analysts said fertiliser makers like Deepak Fertilisers will outperform their agrochemical peers in the quarter ending June, as volume growth, price hikes, and strong demand for complex fertilisers boost profitability.
Moreover, the industry remains insulated from U.S. tariff risks and competition from China, the world’s top chemical exporter, due to its minimal presence in India’s fertiliser sector.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITDA Revenue Profit Mean No. of Stock to Div
growth (%) growth (%) rating* analyst price yield
s target** (%)
Deepak Fertilisers 17.18 9.29 10.19 18.19 Buy 1 1.00 0.65
and Petrochemicals
Corp Ltd
Coromandel 30.22 19.87 8.02 27.40 Buy 10 0.96 0.49
International Ltd
SRF Ltd 44.14 23.86 13.60 44.42 Hold 25 1.03 0.25
Sumitomo Chemical 44.27 33.73 12.51 21.36 Strong 6 0.99 0.21
India Buy
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG IBES
— $1 = 86.7790 Indian rupees
(Reporting by Yagnoseni Das in Bengaluru; Editing by Harikrishnan Nair and Ronojoy Mazumdar)
