Key Events This Week
Jan 27: Stock opens week at Rs.1,154.90, down 1.80%
Jan 28: Moderate recovery to Rs.1,172.00 (+1.48%) alongside Sensex gains
Jan 29: Intraday low hit amid price pressure; Q3 FY26 profit plunges 43.56%
Jan 30: Continued selling pressure; intraday low of Rs.1,032.90; sharp quarterly decline reported
Monday, 27 January 2026: Week Opens with Decline Amid Market Gains
Deepak Fertilisers began the week at Rs.1,154.90, down 1.80% from the previous Friday’s close of Rs.1,176.10. This decline occurred despite a positive market environment, with the Sensex rising 0.50% to 35,786.84. The stock’s volume was modest at 11,939 shares, indicating cautious trading. The divergence between the stock’s negative movement and the broader market’s gains suggested early investor concerns specific to the company or sector.
Tuesday, 28 January 2026: Partial Recovery on Stronger Market Momentum
On 28 January, Deepak Fertilisers rebounded to Rs.1,172.00, gaining 1.48%, supported by a robust Sensex advance of 1.12% to 36,188.16. The stock’s volume slightly decreased to 10,991 shares, reflecting selective buying interest. This uptick aligned with broader market optimism but was insufficient to offset the prior day’s losses, leaving the stock below its previous week’s close.
Wednesday, 29 January 2026: Sharp Intraday Decline Amid Profit Warning and Price Pressure
Wednesday marked a turning point as Deepak Fertilisers faced intense selling pressure, closing at Rs.1,107.45, down 5.51%. The stock hit an intraday low of Rs.1,089.85, a 7.01% drop from the prior close, despite opening near Rs.1,172.00. Intraday volatility was elevated at 5.38%, reflecting heightened uncertainty. This decline occurred against a broadly positive market backdrop, with the Sensex gaining 0.22% to 36,266.59.
The sharp fall was triggered by the company’s Q3 FY26 results, which revealed a 43.56% plunge in profit amid mounting margin pressures. Operating profit before depreciation, interest, and tax (PBDIT) contracted to Rs.353.14 crores, with the operating profit to net sales ratio falling to 12.48%, the lowest in recent quarters. Interest expenses surged 28.91% to Rs.96.40 crores, squeezing net profitability and reducing interest coverage to 3.66 times.
Technically, the stock traded below all key moving averages (5, 20, 50, 100, and 200 days), signalling sustained downward momentum. The MarketsMOJO Mojo Score stood at 44.0 with a 'Sell' grade, downgraded from 'Hold' earlier in January, reflecting deteriorating fundamentals and cautious market sentiment.
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Thursday, 30 January 2026: Continued Selling Pressure and Financial Strain
The downward trend intensified on 30 January as Deepak Fertilisers opened with a gap down of 2.48% and closed at Rs.1,055.05, down 4.73% on the day and 10.29% for the week. The stock hit an intraday low of Rs.1,032.90, marking a 6.73% drop from the previous close. Intraday volatility surged to 30.74%, highlighting significant price swings and investor caution.
The stock underperformed both the Fertilisers sector and the Sensex, which itself declined 0.22% to 36,185.03. The company reported a sharp quarterly decline with profit after tax at Rs.141.49 crores, down 42.5% from the average of the previous four quarters. Rising interest costs and margin compression were key contributors, with interest expenses increasing 28.91% and operating profit margins contracting sharply.
Liquidity concerns emerged as cash and cash equivalents dropped to Rs.247.38 crores, the lowest in recent periods. The financial trend score deteriorated from flat to negative, plunging from -1 to -18 over three months. Despite the short-term weakness, the stock’s long-term performance remains strong, with three-year gains of 75.69% and five-year returns exceeding 600%.
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Daily Price Comparison: Deepak Fertilisers vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-27 | Rs.1,154.90 | -1.80% | 35,786.84 | +0.50% |
| 2026-01-28 | Rs.1,172.00 | +1.48% | 36,188.16 | +1.12% |
| 2026-01-29 | Rs.1,107.45 | -5.51% | 36,266.59 | +0.22% |
| 2026-01-30 | Rs.1,055.05 | -4.73% | 36,185.03 | -0.22% |
Key Takeaways
Significant Underperformance: Deepak Fertilisers declined 10.29% over the week, sharply underperforming the Sensex’s 1.62% gain. The stock’s weakness was driven by company-specific challenges rather than broader market trends.
Quarterly Profit Decline: The 43.56% plunge in Q3 FY26 profit and margin compression due to rising input and interest costs were pivotal in triggering selling pressure.
Technical Weakness: Trading below all major moving averages and elevated intraday volatility signalled sustained bearish momentum and investor caution.
Long-Term Strength Amid Short-Term Challenges: Despite recent setbacks, the stock’s long-term returns remain robust, with multi-year gains far exceeding the Sensex, reflecting historical sector strength.
Conclusion
The week ending 30 January 2026 was marked by pronounced volatility and a sharp decline in Deepak Fertilisers & Petrochemicals Corp Ltd’s share price. The combination of disappointing quarterly results, margin pressures, and technical weakness contributed to the stock’s underperformance relative to the broader market. While the company’s long-term track record remains impressive, the current environment reflects significant near-term challenges. Investors should note the elevated volatility and cautious market sentiment as the stock navigates these headwinds.
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