Deepak Fertiliser Shares Analysis | Deepak Fertiliser Shares Fundamental Analysis

Deepak Fertiliser Shares Fundamental Analysis

Reduced loan: 840cr in 2021
Reduced pledging

  1. Industry chemical - Pharma - IPA and others
  2. Mining chemical - cement, Power, Coal
  3. Agri chemical -

Shift From china to India => nitric acid business
Commodity to Speciality Chemical
Cost optimizing - margin improvement

over the last now more than a decade all are the three businesses that we are into that is industrial chemicals mining chemicals and fertilizers all three we are finding are beautifully aligned with the India growth story.

We still have around 15 to 20 percent headroom in our capacities.

key raw material  for all the three businesses => ammonia  => backward integration
logistics costs => half a million tons in a year => 70 to 80 dollars per ton
ammonia facility next door to our current complex
March 2021 => 1500cr investment
Plan => 24 to 36months
next two yer => 1350cr per year

Tip: in the future ammonia can be used as fuel as scientists suggest.

LNG prices => global LNG prices on a longer-term basis are indeed soft and very attractive and that LNG is the key raw material for our ammonia project so that is something that we are looking at
rate of return (RR): 18-20% from ammonia plan because of the low value of LNG

it's a huge import substitution Aatmnirbhar Bharat project and we could be looking at somewhere close to 25 000 crores in a 10-year period that could be something that would be a forex saving.

From product to solutions
in the fertilizer business unlike the traditional method of focusing on the product whether its urea and pk ssp you know instead of the product focus kind of an approach that typically is there in the industry we are moving towards a more holistic solution-oriented approach where we are looking at a nutrient basket for sugarcane a nutrient basket for cotton a nutrient basket for fruits and vegetables so we are bringing about a complete shift from product to solutions and they shift from customer to consumer so instead of focusing on the channel we are going to be focusing on the farmers.

performance fertilizers