Deepak Fertilisers shares up 6.6 pct

Shares of Deepak Fertilisers & Petrochemicals Corp rose more than 6 per cent during early trade.

Shares of Deepak Fertilisers & Petrochemicals Corp rose more than 6 per cent during early trade on Wednesday on brighter FY11 outlook and expansion plans,analysts and dealers said.

Shares of Deepak Fertilisers opened at 105 rupees on Wednesday against Tuesday’s close of 103.05 rupees and hit a high of 109.80 rupees.

The (profit) margins have improved and the new expansion project of TAN (technical ammonium nitrate) happening at Taloja makes the stock attractive in FY11,Neha Pathak,analyst with KR Choksey Shares and Securities,told said.

The business would grow by about 30 per cent in FY11 due to the proposed expansion,she added.

The Pune-based fertiliser maker aims to become the fifth largest ammonium nitrate maker globally with its new plant with annual capacity of 300,000 tonnes starting September.

Improved scenario for fertiliser business post NBS (nutrient based subsidy) policy and growth in technical ammonium nitrate make the stock attractive,Tarun Surana,analyst,Sunidhi Securities & Finance,said.

The technical ammonium nitrate (plant),which will be commissioned by September,the market is upbeat about that,he added.

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The Q4 results were firm and company has bright FY11 outlook on expansion plans,a stocks dealer who did not wish to be named said.

At 1:15 p.m,shares of Deepak Fertilisers were trading at 102.75 rupees,up 2.19 per cent in the Mumbai market that was up 1.52 per cent.