Shares of Deepak Nitrite Ltd. surged nearly 5% on Wednesday after the board of directors of its wholly owned subsidiary approved a supply deal with Petronet LNG Ltd.
Deepak Phenolics Ltd.'s board approved the offtake of 250 kilotonnes per annum of propylene and 11 KTPA of hydrogen from Petronet's plant in Dahej, Gujarat, according to an exchange filing on Tuesday.
Petronet LNG will supply hydrogen and propylene for 15 years from the date of first supply. The definitive agreement will be entered into in due course of time, it said.
Deepak Nitrite's stock rose as much as 4.62% during the day to Rs 2,393.95 apiece on the NSE. It was trading 3.53% higher at Rs 2,369 apiece compared to a 0.4% advance in the Nifty 50 as of 10:11 a.m.
It has risen 20.05% on a year-to-date basis. The total traded volume so far in the day stood at 6.7 times its 30-day average. The relative strength index was at 73.
Ten out of the 18 analysts tracking Deepak Nitrite have a 'buy' rating on the stock, three recommend 'hold; and five suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 14.1%.
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