Deepak nitrite share price (DEEPAKNTR) looks strong in its technical chart with strong trading volume over the last few trading days. The trading volume of the script is above 100 DMA during this period. It seems the counter is ready to move up sharply. DEEPAKNTR share price crossed its previous swing high at the 2180 level with strong volume. Once the stock stays above this level it will start to move up again with support from the broader market. Again, Deepak Nitrite share price is trading above all its short and long-term moving averages on the daily chart. Buy at this level or on Dip. Fertilizer industry-related companies are buzzing now in the stock market. Refer fundamental analysis below.
Deepak Nitrite share price is also looking strong in the weekly chart with strong volume over the last six weeks. DEEPAKNTR share price looks strong for both short- and long-term investments at this level. The stock is just above its previous swing high in the weekly chart. Deepak Nitrite share price may face resistance at the 2300 level. Once it closes above it, for the short term, Deepak Nitrite share price target for 2022 can be above 2600. For the medium term, Deepak Nitrite share price target can be the 3000 level which is eventually its previous all-time high.
Momentum indicators RSI, ADX, and MACD of DEEPAKNTR share price are looking bullish on the daily chart. One may buy on dips for a 10 to 20% gain in the short term. Deepak Nitrite share price is trading at 27.82 Price to Earnings (PE) and available at 8.89 price-to-book (PB) value while sector PE is 13.38 PE and 2.63 PB. Zero-debt company with a debt-to-equity ratio is 0.09 in FY22 which is negligible. The fundamentals of the company with a low debt-to-equity ratio make it attractive. Deepak Nitrite share price target is looking achievable, accumulate at this level or in correction.
Deepak Nitrite is one of the fastest-growing and fundamentally strong companies
Fundamentally, Deepak Nitrite is a strong company. The company was founded in 1970 in Vadodara, Gujarat.
- The company is one of the fastest-growing chemical intermediates companies in India.
- Deepak Nitrite’s portfolio consists of over 100 international quality products that serve numerous industries & 56 applications.
- The company is a leading producer of Sodium nitrite and the largest producer of Phenol & Acetone in India.
- Deepak Nitrite is among the third producers of Xylidines, Cumidines, and Oximes globally.
- The company is having 6 manufacturing facilities in India and caters to over 1000 customers across 45 countries.
- Deepak Nitrites products can be categorized as
- Basic Chemicals
- Fine & Specialty Chemicals
- Performance Products
Supply chain disruption due to Lockdown in China and the Russia-Ukrain war will increase the demand for Indian chemical intermediaries domestically and globally. Further, the Make in India policy and PLI schemes of the Government of India will boost this company’s revenue.
Deepak Nitrite Financial Analysis
Deepak Nitrite delivered strong revenue of INR 2068 crores for Q1 2023 which is 35% YoY growth over INR 1876 Crores in Q1 2022. As per the latest presentation, the company reported total revenue of INR 6845 crores in FY22 while the Profit after Tax of INR 1067 crores in FY22.
Deepak Nitrite is a mid-cap company with a market cap of INR 30609 crores as of March 31 FY22 with a face value of INR 2. Return on capital employed is ~40 percent while return on equity is ~32 percent in FY22. The company has been paying dividends consistently over the years. The dividend paid by the company in FY22 is 350% as against 275% in FY21.
Promoter shareholdings slightly increased from 45.69% in June 2021 to 49.72% in June 2022. Though FIIs decreased their stake from 11.43% to 9.07% during the same time, FIIs have increased their holdings during the last quarter from 8.76 % in March 2022 to 9.07 % in June 2022. DIIs has significantly increased its stake in the company over the last three quarters from 0.14% in September 2021 to 0.95% in March 2022. However, DII holdings in the company remained almost the same at 10.4% in June 2021 to 10.71% in June 2022. This reflects that FIIs, DIIs, and promoters are confident about the company’s performance.
Deepak Nitrite Promoters and Management
Deepak Nitrite is run by strong leadership. D.C. Mehta is the Chairman & Managing Director of the company. He has over 40 years of experience in the industry. He holds a science degree from the University of Bombay.
Mr. Maulik Mehta is the CEO & Executive Director of the company. He holds a Bachelor of Business Administration degree from the University of Liverpool, UK. He also holds a Master in Industrial and Organizational Psychology from Columbia University, and MBA from Harvard University, Boston, USA. Mr. Maulik has over 10 years of experience in the area of Business Development.