Monsoon Progress Brings Fertilizer Stocks in Sharp Focus
Deepak Fertilisers Stock Soars on Monsoon Optimism (Images company website)
Deepak Fertilisers Stock Soars on Monsoon Optimism and Government Agri-Push
By S JHA
MUMBAI, June 4, 2025 – Shares of Deepak Fertilisers and Petrochemicals Corporation Ltd. surged significantly yesterday, driven by growing optimism surrounding an above-normal monsoon forecast for 2025 and robust government initiatives to bolster India’s agricultural sector.
The Deepak Fertilisers and Petrochemicals Corporation stock has gained almost 20% in last one month. The scrip gained almost 5% yesterday.
StockEdge in an alert to investor on its Telegram channel posted an analysis of a sharp rally in fertilizer stocks in yesterday’s session. “Fertilizer Stocks Exploding! Monsoon optimism + government push + rising volumes = perfect storm,” exclaimed StockEdge, a Kolkata-based brokerage firm.
The Deepak Fertilisers and Petrochemicals Corporation stock is gaining grounds amid strong trading volumes and positive market sentiment.
The India Meteorological Department (IMD) and private forecaster Skymet have projected a robust southwest monsoon at 105% and 103% of the Long Period Average (LPA), respectively. Experts opined that Monsoon forecasts bode well for India’s farm economy, which supports nearly half of the country’s unirrigated farmland.
The Monsoon forecast, coupled with the government’s continued emphasis on agricultural growth through initiatives like the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) and a ₹1.64 trillion subsidy budget, has sparked enthusiasm for fertilizer stocks, with Deepak Fertilisers emerging as a key beneficiary.
Market participants claimed a “massive breakout” in Deepak Fertilisers and Petrochemicals Corporation stock, with strong volume and “clean breakout above key resistance zone near ₹1440, holding well above 20 EMA (₹1331) & 50 EMA (₹1262)”.
The stock watchers claimed that the Deepak Fertilisers and Petrochemicals Corporation stock’s next target zone is placed around ₹1500-1580.
The stock observers have noted that Deepak Fertilisers and Petrochemicals Corporation stock “tightly consolidating near all-time high. Above-average monsoon may increase fertiliser demand in the coming months.” The stock closed at ₹1543 on Tuesday.
Business Standard noted that Deepak Fertilisers’ strategic initiatives, including backward integration in ammonia manufacturing and expansion of its Technical Ammonium Nitrate (TAN) and nitric acid capacities, position it to capitalize on rising agricultural and industrial demand.
“Deepak Fertilisers is well-poised to benefit from the monsoon-driven demand for fertilizers and the government’s push for food security,” said Vishal Malkan, an analyst at malkansview.com, who recommended buying the stock with a target of ₹1,500.
The company’s Q4 FY25 results further bolstered investor confidence, with an 18% revenue growth and a 102% surge in profit after tax (PAT), driven by an 83% year-on-year increase in bulk fertilizer sales volume. Chairman and Managing Director Sailesh C. Mehta highlighted, “Our growth aligns with India’s agricultural and industrial story, particularly in horticulture and infrastructure, with stable margins in our crop nutrition and chemical segments.”
Analysts also pointed to the company’s diversified portfolio, with 40% of revenues from fertilizers and 59% from industrial chemicals, as a natural hedge against market volatility. The recent anti-dumping duty on Chinese isopropyl alcohol (IPA) is expected to further enhance margins in the chemical segment.
However, some caution persists. Analysts stated that “with the stock near its 52-week high, investors might consider booking profits, though strong fundamentals support holding for further gains toward ₹1,608.”
Analysts like those at SMC Global Securities are citing Deepak Fertilisers’ robust fundamentals and ongoing corporate restructuring as key drivers for future gains.
Disclaimer: Investors are advised to consult certified financial advisors before making investment decisions. Stock markets are volatile, and investors should exercise caution.
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