Deepak Fertilizers jumps 50% in 4 weeks due to strong demand forecast for nitric acid

24 Aug 2022 , 08:59 AM

In Tuesday’s trading, shares of Deepak Fertilizers & Petrochemicals Corporation (DFPCL) were stuck at a 5% upper circuit at Rs974.95, setting a new high. On the NSE and BSE, 810,000 equity shares were exchanged collectively up till 2:33 PM against 70,000 shares of pending buy orders.

The stock has increased 50% over the last four weeks due to robust demand expectations and solid results. The S&P BSE Sensex, in contrast, was up 5%. The stock increased by 150% in a single year, compared to a benchmark index rise of only 6%.

“Nitric acid demand and prices are anticipated to continue high due to the declining availability of down streams from China and the resulting increase in price. Strong demand for nitric acid from downstream clients will continue to be driven by the change in the global supply chain trend toward India. Demand for IPA small packs is anticipated to stay strong from both Pharma and LR grade “In their annual report for FY2022, the business stated.