Emkay has initiated coverage on Deepak Fertilisers with a buy rating and a target price of ₹2,000, citing its leadership position in mining and industrial chemicals and a portfolio well aligned with India’s broader growth trajectory. The brokerage noted that the company is increasingly shifting from a commodity-led profile to a more specialty-driven offering, which should support margin expansion over the next few years.
Emkay expects capacity expansion to drive at least 50% EBITDA growth over FY26–28, supported by rising demand and operational efficiencies. The brokerage added that the company has restructured its businesses into separate entities and plans to demerge them within the next two to three years. This, it said, could unlock significant value and trigger a multiple re-rating across divisions.
Disclaimer: The views above are those of Emkay. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
