Deepak Fertilisers - Fertiliser surprises positively, upgrade earnings BUY :Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Deepak Fertilisers

Fertiliser surprises positively, upgrade earnings

BUY

CMP: Rs 166                                       Target Price: Rs 250

---

n     Q2FY12 results were in line with estimates. Revenues Rs 5.8 bn, +39%yoy, was above est due to strong fertiliser revenues but APAT Rs 619 mn, +38%yoy, was broadly in line with est

n     TAN demand remained sluggish due to Telangana stir & monsoon related floods. Margin pressures also intensified as company was unable to push cost related increases

n     Strong results in fertiliser were driven by higher trading of specialty fertiliser resulting in fertiliser contribution to EBIT in H1FY12 increasing to 25% from 18% previous year 

n     Driven by strong performance of fertiliser, we raised our EPS to Rs 26.7/30.6 (previous Rs 25.2/27.9) for FY12/13, maintain target of Rs 250 and reiterate BUY