Home / Markets / Stock Markets /  Multibagger stock of 2022: Fertiliser stock hits upper circuit, gives 85% return this year
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Multibagger stock of 2022: Despite sell-off pressure on Dalal Street caused by geopolitical tension, global inflation and fear of recession, Indian stock market has produced a good number of multibagger stocks in 2022. Meanwhile, some stocks are on cusp of delivering multibagger return to its shareholders in 2022. Shares of Deepak Fertilisers and Petrochemicals Corporation Limited is one of them. This fertiliser stock has surged from around 403 to 746.25 apiece levels in year to date (YTD) time, logging more than 85 per cent rise this year.

Deepak Fertilisers share price today opened with upside gap and went on to go up to its intraday high of 746.25 levels and hit upper circuit in the early morning deals. While ascending to its intraday high, this possible multibagger stock for 2022 went on to hit its life-time high as well. Deepak Fertilisers' intraday high today is its life-time high as well. The stock has hit upper circuit on second straight session as it had hit upper circuit on Friday session as well.

Shares of India's one of the leading producers of industrial chemicals and fertilisers company has been ascending after the announcement of strong Q1 earnings results. The company reported robust top line growth and margin enhancement primarily driven by chemical segment as it contributed about 87 per cent of total segment profits. Chemicals revenues doubled to 1,771 crore and margins expanded from 19 per cent in Q1 FY22 to 41 per cent in Q1 FY23. Fertilisers segment revenues grew by 26 per cent YoY although segment margins were impacted on account of sharp increase in raw material prices.

Operating EBITDA Margins increased from 15.2 per cent in Q1 FY22 to 24.3 per cent in Q1 FY23.

Commenting on the Q1 performance of the company, Sailesh C. Mehta, Chairman & Managing Director at Deepak Fertilisers and Petrochemicals Corporation Limited said, "We have continued our strong operational performance in Q1 FY2023 on the back of improved margins in Chemical segment This persistent business performance is a result of our long-term strategic initiatives, strong market positioning and favourable market conditions," adding, "We are confident of maintaining strong market share in our key products across the segments. The strong demand outlook of our key products coupled with differentiated product portfolio should support business growth and profitability in the long term."

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