Govt issues notification to curb excess import of isopropyl alcohol, Deepak Fertilisers shares gain 3%

In apparent good news for Deepak Fertilisers investors, the Directorate General of Trade Remedies has issued a notification stating that the import of isopropyl alcohol should not exceed the prescribed quantity.

Deepak Fertilisers, the only Indian manufacturer of specialty chemical IPA (isopropyl alcohol), had applied to probe the damage domestic industry is facing due to excess import of IPA. It was eventually revealed that Indian specialty chemical industry was going through huge losses.

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Isopropyl alcohol is mixed with water for use as a rubbing-alcohol antiseptic. It is also used in aftershave lotions, hand lotions and other cosmetics. It is also a key ingredient for sanitisers, which may benefit from rising demand for cleansers.

The shares of Deepak Fertilisers gained over 3 per cent to hit a day’s high level of Rs 429.45 per share on the BSE intraday trade on Monday. The stock had hit 52-week high of Rs 492.6 per share on August 4 2021, as per BSE data. It had jumped over 90 per cent in the last six months on the BSE.

Choice Broking Executive Director Sumeet Bagadia said the overall structure of Deepak Fertilisers looks good. Moreover, the speciality chemical sector seems buzzing, he said. He added that there has been a sideways move in the stock and should be bought at dips around Rs 390-380 per share levels.

At around 11:32 am, the counter is trading over 1 per cent higher to Rs 422.05 per share on the BSE, as compared to 1.1 per cent rise in the S&P BSE Sensex on Monday during same time.

Deepak Fertilisers and Petrochemicals Corporation is a manufacturer of fertilizers and chemicals.