Rs 1,200 crore project: Multibagger stock jumps after signing 5-year LNG regasification contract with Petronet LNG Ltd for 25 TBTUs annually

DSIJ Intelligence-1 / 15 Jul 2025/ Categories: Multibaggers, Trending

Rs 1,200 crore project: Multibagger stock jumps after signing 5-year LNG regasification contract with Petronet LNG Ltd for 25 TBTUs annually

The stock has given multibagger returns of 121 per cent from its 52-week low of Rs 726.20 per share and a whopping 1,360 per cent in 5 years.

Today, shares of Deepak Fertilizers & Petrochemicals Corporation Ltd surged 2.20 per cent to Rs 1,603.65 per share with an intraday high of Rs 1,658 and an intraday low of Rs 1,599.50. The shares of the company saw a spurt in volume by more than 2 times on the BSE.

Deepak Fertilizers & Petrochemicals Corp Ltd (DFPCL) has entered into a significant long-term agreement with Petronet LNG Limited (PLL) for the regasification of Liquefied Natural Gas (LNG). This domestic contract, initially communicated on July 10, 2025, involves Petronet LNG annually regasifying approximately 25 TBTUs of LNG primarily at its Dahej terminal, following an initial ramp-up phase. The regasified gas will be primarily supplied to DFPCL's manufacturing facilities in Taloja for internal consumption, ensuring a consistent energy source for their operations.

The commercial consideration or size of this vital contract is valued at Rs 1,200 Crore, with a provision for an additional outlay of up to 20 per cent over the duration of the agreement. The contract spans a period of five years, highlighting a long-term strategic partnership between DFPCL and Petronet LNG. This agreement underscores DFPCL's commitment to securing its energy needs and strengthening its operational capabilities.

DSIJ's DSIJ's ‘Mid Bridge’ service recommends well researched Mid-Cap stocks for smart investing. If this interests you, do download the service details here.

Incorporated in 1979, Deepak Fertilisers and Petrochemicals Corporation Ltd is in the business of fertilisers, agri services, bulk chemicals, mining chemicals and real estate. The company has a market cap of over Rs 20,000 crore and reported positive numbers in its Quarterly Results and annual results.

The shares of the company have a PE of 22x whereas the industry PE is 30x and an ROE of 16 per cent & an ROCE of 15 per cent. The stock has given multibagger returns of 121 per cent from its 52-week low of Rs 726.20 per share and a whopping 1,360 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.