Originally posted by catcall Most fertilizer companies (including GSFC and GNFC) now have a diversified chemical product range aside of the fertilzer products and in some cases the profits accruing out of the Chemical sales outweigh those in the fertilzer sector. in such cases, a general sectoral correction in these companies due to a poor monsoon would turn up bargain buys ....

Very True catcall,
I have never thought of the company, we are dicussing in this thread, Deepak Fertiliser and Petrochemical Corp as a fertiliser company. It is more of a chemical company. And to prove your remark," in some cases the profits accruing out of the Chemical sales outweigh those in the fertilzer sector"

I highlight Segment wise Product and Revenue aspect of Deepak Fertilisers sourced from their annual report 2008-09 pages 9-11

Industrial chemicals
Revenues, 2008-09: Rs. 811.49 cr
Contribution to total operating revenues in 2008-09: 57.47 percent 

Industrial Chemicals Products
Methanol 
Dilute Nitric Acid
Nitric Acid (concentrated and strong)
Liquid Carbon Dioxide
Technical Ammonium Nitrate
Brands of Ammonium Nitrate:
+ OPTIMEX (Low Density Prille Ammonium Nitrate)
+ OPTIFORM (Prilled Ammonium Nitrate)
+ OPTISPAN (Prilled Ammonium Nitrate)
+ OPTIBLAST (Prilled Ammonium Nitrate)
Ammonium Nitrate Solution
Iso Propyl Alcohol 

Agri-business
Revenues, 2008-09: Rs. 576.80 cr
Contribution to total operating revenues in 2008-09: 40.85 percent 

Agri-business Products and services 
Mahadhan Potash(MOP)
Mahadhan Power (NP
Mahadhan Chetak(DAP)
Bhoodhan 
Water solubles
Micro-nutrients
Bio-fertilisers
Mixtures
Agri Lab Services
Mahadhan Saarrthie Centres

Value-added real estate services
First year of operations opening in a phased manner

So they roughly account for 40% of their revenues from fertiliser segment.
 

This stock's price has doubled in last year. What do gurus feel? Buy, sell, hold?

Originally posted by smartcat It's a hold, in my opinion. But I think they should sell Ishanya Mall - it doesn't fit the business profile of Deepak Fertilizer.

Thank you, Sir! (Re. the Mall ... maybe the wife's idea, like EIH & Reliance )

I own this stock, but am not very happy by their real estate sector performance.  They have sunk almost 250cr in it and the yearly returns are still abysmally negative.  I fail to understand that when they have options of investing further in their core business which generates more than 20% return on capital, then why this intent to continue putting more money and efforts into a business (real esate)  for which they dont have any core competance.