Shares of Deepak Fertilisers and Petrochemicals Corp. surged over 10% on Tuesday after it entered into a long-term supply agreement for liquefied natural gas with Norway-based Equinor ASA.
With this partnership, Deepak Fertilisers will strengthen its value chain with an attractive long-term LNG contract, the company said in an exchange filing on Monday.
"This end-to-end tie-up shall establish a strong long-term foundation for all of DFPCL's product segments," it said.
The agreement is for annual supplies of up to 0.65 million tonne over a period of 15 years, beginning in 2026, it said. "The tie-up provides room for trading some LNG parcels in the growing LNG demands in India, as well as accommodating DFPCL's growing captive needs."
Shares of Deepak Fertilisers rose as much as 10.57%, before paring gains to trade 7.07% higher at 10:07 a.m., compared to a 0.24% decline in the benchmark Nifty 50.
It has declined 17.38% in the past 12 months. The total traded volume so far in the day stood at 43 times its 30-day average. The relative strength index was at 39.5.
Both the analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 29.3%.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
