Date:15/11/2005 URL: http://www.thehindubusinessline.com/2005/11/15/stories/2005111502881500.htm

Back Deepak Fertilizer rises on new project proposal

Our Bureau

Mumbai , Nov. 14

SHARES of Deepak Fertilizer and Petrochemical rose on Monday on the news that its proposed chemical project would become operational early next year.

The company is setting up a 70,000-tonne isopropyl alcohol project with an investment of Rs 160 crore and is expected to be operational by February 2006.

On Monday, its stock price rose 8.67 per cent at Rs 88.35 on BSE with volume of 2.36 lakh shares and on NSE it closed at Rs 88.50, up 8.59 per cent with volume of 4.94 lakh shares. Of the total shares traded, 46.5 per cent were for delivery on BSE and 54.5 per cent on NSE.

"With a 20 per cent market share in the methanol market, the new 70,000-tonne, isopropyl alcohol (IPA) project would provide Deepak Fertiliser new source of revenue driver," said Anand Rathi Securities, which has put a buy on the stock.

It said this product is a value added solvent used by pharmaceutical, agro-chemicals, imaging chemical (printing & inks), healthcare and paint industry.

The broking firm expects this business to generate sales of Rs 200 crore for the full year of 2007.

Another growth area for the company is its specialty mall `Ishanya' in Pune that would provide products catering to construction needs of buildings, offices, hotels, IT parks and other urban infrastructure. This project is expected to cost around Rs 130 crore and would be ready by 2007.

Anand Rathi Securities expect this mall to generate rental incremental of Rs 20-25 crore.

"With various ventures adopted by the company in the recent past, it becomes evident that the company is poised for growth with most of the projects expected to be on stream from 2006 with full benefits expected from 2007," Anand Rathi Securities said.