Why is Deepak Fertiliz. falling/rising?

Jul 01 2025 09:34 PM IST
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As of 01-Jul, Deepak Fertilizers & Petrochemicals Corp Ltd is seeing a price increase to Rs 1,745.35, reflecting strong momentum with a recent 52-week high and significant outperformance against its sector. Despite impressive growth metrics and rising investor interest, concerns about its high valuation may affect long-term sustainability.
As of 01-Jul, Deepak Fertilizers & Petrochemicals Corp Ltd is experiencing a price increase, currently at Rs 1,745.35, which reflects a rise of Rs 38.35 or 2.25%. The stock has recently hit a new 52-week high of Rs 1,757.8 and has outperformed its sector by 4.35%. Over the past three days, the stock has gained 9.66%, and it is trading above all key moving averages, indicating strong momentum. The company has demonstrated high management efficiency with a return on capital employed (ROCE) of 17.68%, and its operating profit has grown at an impressive annual rate of 43.42%. Additionally, the stock has shown remarkable long-term performance, generating a return of 154.37% over the past year, significantly outperforming the BSE500 index.

In the broader market context, the stock's short-term return of 10.48% over the past week compares favorably to the Sensex, which has only increased by 2.00% during the same period. This indicates that Deepak Fertilizers is not only performing well on its own but is also gaining traction relative to the broader market. The rising investor participation, evidenced by a 158.9% increase in delivery volume, further supports the stock's upward trajectory. However, it is worth noting that the stock's valuation appears expensive with a PEG ratio of 0.2, suggesting that while the stock is currently rising, there may be concerns regarding its long-term sustainability at these levels.
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