Deepak Fert jumps up 7.5%

Deepak Fertilisers has been gaining for the last 3 days and has risen 19.45% in the period. The stock touched an intraday high of Rs.169, up 7.5%.

The stock jumped up after it announced that it has commenced production of Nitric Acid complex at Dahej, Gujarat.

The new facility, with project cost of approx. Rs. 550 crore has production capacities of 92 KTPA for Concentrated Nitric Acid (CNA) and 149 KTPA for Diluted Nitric Acid (DNA).

Deepak Fertiliser is now the second largest manufacturer of Nitric Acid in Asia, having the largest integrated nitric acid plants with a combined capacity of about 1.07 Million TPA at Taloja and Dahej.

The company is one of the leaders in the space with current market share of about 45% and the existing capacities are running at full utilization levels supported by high demand from end use players and captive requirements.

Post addition of these new capacities, the company’s market share will increase to about 54%.

The new greenfield plants will cater to the growing demand for the CAN and DNA market in the Gujarat region along with customers in North and East India. Most of the offtakes have already been tied up with long term customers from the new plant and the project is expected to operate at full capacity within a short span of time.