Deepak Nitrite could result in as much as 9%, brokerage improve ranking; Elevated goal worth – INA NEWS

Deepak Nitrite Inventory Value: The shares of specialty chemical compounds firm Deepak Nitrite rose by 4 % on March 5 and the worth on BSE went as much as Rs 1938.20 excessive. Kotak Institutional Equities have upgraded the inventory ranking to ‘Ed’. Additionally, the goal worth has been elevated to Rs 2,020. That is about 9 % increased than the inventory on BSE on March 4.

The corporate’s efficiency within the October-December 2024 quarter slowed down as there was plenty of strain on the margin attributable to weak pricing in varied segments. Additionally, there was much less demand for superior intermediates (AI) on the time of agrochemical de-stocking. The Quantity declined by about 15 KTPA because of the deliberate shutdown on the phenolix plant. Within the December 2024 quarter, the online revenue of Deepak Nitrite fell 51.5 % on an annual foundation, whereas the working margin got here down to eight.9 %.

Estimated earnings lower by 20 % per share

Kotak Institutional Equities have lower the estimated earnings per share by 17-20 % for FY 2025-27. Additionally, goal EV/Ebitda a number of for phenolix has been elevated from 10X to 12X. Progress alternatives in Downstream merchandise comparable to polycarbonate in Kotak’s be aware are anticipated. Given the fourth quarter of FY 2025, Kotak stated that he expects some restoration because the supply of agrochemical intermediate has resumed. Additionally, after the resume of the plant, the quantity of phenolix has turn out to be regular. Nevertheless, a lot of the merchandise are anticipated to cut back any sharp restoration in margins within the close to future from industry-wide overcapacea.

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In 2025 up to now 22 % damaged Deepak Nitrite

The market cap of lamp nitrite is Rs 26300 crore. In keeping with the BSE, the corporate’s inventory has come down 35 % within the final 6 months and 22 % within the 12 months 2025 up to now. The corporate had 49.24 % stake within the firm until the tip of December 2024. The inventory watched its file on 3 March 2025 noticed Rs 1,790.

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