Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) saw its shares climb nearly 3% after Emkay Global initiated coverage on the company with a buy rating and a target price of ₹2,000. As of 9:22 AM, the shares were trading 2.40% higher at Rs 1,446.60
According to Emkay, the company is in the middle of a meaningful transition from a traditionally commodity-driven model to a more specialty-focused business. This strategic shift is expected to support steady margin expansion over the next several years. The firm noted that as demand continues to strengthen across key sectors, Deepak Fertilisers’ evolving portfolio places it on a stronger footing for long-term profitability.
Emkay also expects the ongoing capacity expansions to significantly boost performance, projecting at least 50% EBITDA growth between FY26 and FY28. The brokerage believes that rising demand, better operational efficiencies and a more premium product mix will be the major contributors to this growth.
In addition to business expansion, Deepak Fertilisers has already restructured its operations into separate entities and plans to formally demerge them within the next two to three years. Emkay noted that this strategic move could unlock meaningful value and drive a potential re-rating for each division, as investors will be able to assess the businesses independently.
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