Deepak Fertilizers & Petrochemicals shares surge near 9% amid reaffirming of credit rating, stock surge 45% in five days
Trading near record high level, the shares of Deepak Fertilizers & Petrochemicals Corporations jumped around six per cent to Rs 471.25 per share on the BSE intraday on Wednesday, as rating agency ICRA has reaffirmed the credit ratings of the company on Tuesday.
Trading near record high level, the shares of Deepak Fertilizers & Petrochemicals Corporations jumped around six per cent to Rs 471.25 per share on the BSE intraday on Wednesday, as rating agency ICRA has reaffirmed the credit ratings of the company on Tuesday.
According to the company’s filing to exchanges, the long-term funds of Deepak Fertilizers has been reaffirmed to [ICRA]A+ with a stable outlook, and short term has been upgraded to [ICRA]A1+.
ICRA in its statement said, “The upgrade in the short-term rating notes the improvement of Deepak Fertilisers & Petrochemicals Corporation Limited’s (DFPCL) liquidity profile on a consolidated basis.”
This was led by a substantial improvement in its scale of operations and profitability margins coupled with a decline in net working capital intensity leading to a substantial increase in cash accruals and cash balances and reduction in short-term debt as of March 31, 2021, the rating agency said.
The stable outlook takes into account established position in both the chemicals and fertilisers segments and the stable demand outlook for both the sectors in the long term. ICRA added.
Deepak Fertilizers on Tuesday hit a new record high of Rs 474.65 per share, and the stock today touched a day’s high at Rs 471.25 per share. The stock hit around 45 per cent in the last five days.
In quarter four of fiscal 2021, the company’s net profit jumped over 400 per cent to Rs 116 crores, while its revenue grew by 21.8 per cent to Rs 1,575 crores year-on-year basis.
Deepak Fertilizers jumped around 45 per cent in the last five sessions, while it closed near three per cent higher at Rs 458.5 apiece today on the BSE.
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