Deepak Nitrite is a leading player in the Indian chemical intermediates industry. It is the largest producer of phenol and acetone in India and a leading global producer of sodium nitrite and sodium nitrate. The company’s manufacturing facilities are located at Nandesari, Dahej (Gujarat), Roha, Taloja (Maharashtra) and Hyderabad (Telangana), and its research and development facility is located at Nandesari (Gujarat). The current share price of Deepak Nitrite is Rs 1217, up Rs 107 or 9.7%.
Basic Chemicals (16% of rev) – Mainly oil, rubber and dye industry. Largest player in sodium nitrite / nitrate, fuel additives and nitro-toluene
Fine & Specialty Chemicals (17% of rev) – Mainly pharma, agrochem and personal care
Performance Products (7% of rev) – Mainly paper, textiles, detergents. Backward integration to DASDA is a ve
Phenolics (60% of rev) – Main growth driver. Capacity working at over 100% currently. Products include phenol, acetone and isopropyl alcohol (IPA).
Deepak Nitrite produces 200ktpa of phenol and 120ktpa of its co-product acetone and 2,600ktpa of cumene. This plant is eight times larger than all existing facilities in India. DPL is doubling its IPA capacity to 60ktpa from 30ktpa (commonly used disinfectant for sanitizers). Products cater to industries like plywood, pharma, adhesives, sanitisers, chemicals and paints. The company substituted majority of the local market imports of Phenol and Acetone, reportedly attaining a market share of ~65% in the country as per HDFC Sec. The brokerage sees Deepak Phenolics revenues shoot from Rs 2000 cr in FY20 to Rs 3100 cr in FY23 with EBIT higher by 3x to Rs 550 cr in the same period.
Land development activity has commenced at the newly acquired site measuring 127 acres at Dahej Continued shift from China to India for manufacture of chemicals which is already evident and potential for further acceleration in upcoming quarters Platform for continued growth through planned introductions of newer products and projects Second phase of the IPA plant is progressing well and remains; Commissioning in Q4 Brownfield expansion at Nadesari plant along with other downstream products in the Phenolics business to contribute towards growth.
Market Expert and Analyst Darshan Mehta highlights that the Market cap of Deepak Nitrite is only Rs 15000 cr, he believes that Deepak Nitrite is an excellent company with strong fundamentals and is growing consistently at a rapid pace. He believes huge rerating will be possible when street realizes it’s not a commodity business anymore. There is not much sell side research which may increase leading to more institutional interest when happens. Deepak Nitrite is doing capex which is paying off towards growth. Has a history of turning over assets.
Darshan belives that Deepak Nitrite has market leadership across most of its product segments. He says Deepak Nitrite is Cheaper than peers in valuation (one of the cheapest) with much better financials. He says Debt to Equity ratio of Deepak Nitrite stands at 0.28 vs 0.74 last year. He highlights that Promoter stake in the company is good and has been increasing for the past 2 years. The Company is highly backward integrated. Production Linked Incentives (PLI) scheme for specialty chemicals if it happens is good.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
By continuing to browse or use our sites, you agree that we can store and access cookies and other tracking technologies as described in this policy.
A cookie is a small text file that can be stored on and accessed from your device when you visit one of our sites, to the extent you agree. The other tracking technologies work similarly to cookies and place small data files on your devices or monitor your website activity to enable us to collect information about how you use our sites. This allows our sites to recognize your device from those of other users on our sites. The information provided below about cookies also applies to these other tracking technologies.
These are those cookies that belong to us and which we place on your device or are those set by a website that is being visited by the user at the time (e.g., cookies placed by zeenews.india.com)
Some features used on this website may involve a cookie being sent to your computer by a third party. For example, if you view or listen to any embedded audio or video content you may be sent cookies from the site where the embedded content is hosted. Likewise, if you share any content on this website through social networks (for example by clicking a Facebook “like” button or a “Tweet” button) you may be sent cookies from these websites. We do not control the setting of these cookies so please check the websites of these third parties for more information about their cookies and how to manage them.
Session cookies are temporary and deleted from your machine when your web browser closes. We use session cookies to help us track internet usage as described above.
The data collected by the sites and/or through Cookies that may be placed on your computer will not be kept for longer than is necessary to fulfil the purposes mentioned above. In any event, such information will be kept in our database until we get explicit consent from you to remove all the stored cookies.
These cookie are essential to our site in order to enable you to move around it and to use its features. Without these essential cookies we may not be able to provide certain services or features and our site will not perform as smoothly for you as we would like. These cookies, for example, let us recognize that you have created an account and have logged in/out to access site content. They also include Cookies that enable us to remember your previous actions within the same browsing session and secure our sites.
These cookies are used by us or by our third-party service providers to analyse how the sites are used and how they are performing. For example, these cookies track what content are most frequently visited, your viewing history and from what locations our visitors come from. If you subscribe to a newsletter or otherwise register with the Sites, these cookies may be correlated to you.
These cookies let us operate the sites in accordance with the choices you make. These cookies permit us to « remember you” in-between visits. For instance, we will recognize your user name and remember how you customized the sites and services, for example by adjusting text size, fonts, languages and other parts of web pages that are alterable, and provide you with the same customizations during future visits.
If you do not want cookies to be dropped on your device, you can adjust the setting of your Internet browser to reject the setting of all or some cookies and to alert you when a cookie is placed on your device. For further information about how to do so, please refer to your browser ‘help’ / ‘tool’ or ‘edit’ section for cookie settings w.r.t your browser that may be Google Chrome, Safari, Mozilla Firefox etc.
Please note that if your browser setting is already setup to block all cookies (including strictly necessary Cookies) you may not be able to access or use all or parts or functionalities of our sites.
If you want to remove previously-stored cookies, you can manually delete the cookies at any time from your browser settings. However, this will not prevent the sites from placing further cookies on your device unless and until you adjust your Internet browser setting as described above.
For more information on the development of user-profiles and the use of targeting/advertising Cookies, please see www.youronlinechoices.eu if you are located in Europe or www.aboutads.info/choices if in the United States.
– Deepak Nitrite surges 12% on strong operational performance in Q3
– Deepak Nitrite Stock Hits A Record High On Above-Estimated Results, Bullish Outlook
– Deepak Nitrite Share price rises over 10%: Fundamentals explained for Investors
– Deepak Nitrite overcomes lockdown impact to report growth; Consol. PAT, at Rs. 217 crore, rises 38% on a YoY basis
– Deepak Nitrite overcomes lockdown impact to report growth; Consol. PAT, at Rs. 217 crore, rises 38 Per cent on a YoY …