Deepak Fertilisers Share Price Sees Upward Trend
Investors are showing interest in purchasing shares of Deepak Fertilisers, a company that manufactures industrial and agricultural chemicals. The company recently entered into a long-term supply agreement, which has encouraged investors to buy shares. The initial surge in share price was over 10%, but profit booking has slightly softened the price. Currently, the company’s shares are trading at ₹546.00. On Thursday (22 February 2024), the share price was trading at ₹516, a decrease of 1.12%.
Deepak Fertilisers has entered into a long-term supply agreement with Norwegian company Equinor for liquefied natural gas (LNG). Under the agreement, Deepak Fertilisers and Petrochemicals Corporation will supply 6.5 lakh tonnes of LNG annually for 15 years starting from 2026. The LNG will be transported to the western coast of India. This long-term partnership will not only meet the growing demand for LNG in the country but also fulfill the company’s commercial requirements.
The financial results for the December 2023 quarter were not satisfactory for Deepak Fertilisers and Petrochemicals. The company’s net profit decreased by 77% on an annual basis to ₹57.56 crores.
Last year, on 19 December 2023, the share price reached a high of ₹715. However, the weak results for the December quarter put pressure on the stock, and by 13 February 2024, it had dropped to a low of ₹484, a decrease of over 32% in just two months. While the stock has recovered by around 10% from this low point, it is still 35% below the high of a year ago.
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