JM Financial retains Buy on Deepak Nitrite, keeps target price unchanged at Rs 2,305
Deepak Nitrite's key products/revenue segments include Fine Chemicals, Export Incentives, Scrap, Sale of services and Other Operating Revenue for the year ending 31-Mar-2024.
Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 2202.48 crore, up 14.45% from last quarter Total Income of Rs 1924.39 crore and up 2.66% from last year same quarter Total Income of Rs 2145.34 crore. The company has reported net profit after tax of Rs 202.50 crore in the latest quarter.
The company's top management includes Mr.Deepak C Mehta, Mr.Sanjay Asher, Mrs.Purvi Sheth, Mr.Punit Lalbhai, Mr.Vipul Shah, Mr.Prakash Samudra, Mr.Girish Satarkar, Mr.Meghav Mehta, Mr.Ajay C Mehta, Mr.Sanjay Upadhyay, Mr.Maulik D Mehta, Mr.Dileep Choksi. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2025, the company has a total of 14 Crore shares outstanding.
Live Events
Investment Rationale
Deepak Nitrite's 4QFY25 earnings print was significantly better than our and consensus expectations primarily on account of government incentives. The company will continue to receive these incentives on the existing phenol complex as well the upcoming polycarbonate complex. On the operational front, advanced intermediates (AI) performance showed sequential improvement. Going ahead, volume normalisation in the AI segment is likely from 2HFY26. Moreover, commissioning of backward integration capex in the AI segment (including nitric acid, photo chlorination) should help lift AI segment margins from 2QFY26, according to JM FInancial. On the phenolics side, benefits of MIBK/MIBC and acetophenone commissioning are likely to flow through from 3QFY26. Besides that, we are also factoring in some improvement in phenol-acetone spreads. There has been a delay in the commissioning of various projects. Hence, on overall basis, the brokerage's FY26-27 EPS estimates are revised downwards by ~1%. Since Deepak Nitrite has the potential to more than quadruple its EBITDA over thenext 5 years, JM Financial maintains their BUY rating on the name with an unchanged Mar?26 target price of Rs 2,305/share (based on 30x Mar?27E EPS).
Promoter/FII Holdings
Promoters held 49.28 per cent stake in the company as of 31-Mar-2025, while FIIs owned 6.64 per cent, DIIs 23.22 per cent.
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel JM Financial has maintained Buy call on Deepak Nitrite with a target price of Rs 2,305 (unchanged). The current market price of Deepak Nitrite is Rs 2027.75. The time period given by the analyst is a year when Deepak Nitrite price can reach the defined target. Deepak Nitrite, incorporated in 1970, is a Mid Cap company with a market cap of Rs 27650.96 crore, operating in Chemicals sector.Deepak Nitrite's key products/revenue segments include Fine Chemicals, Export Incentives, Scrap, Sale of services and Other Operating Revenue for the year ending 31-Mar-2024.For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 2202.48 crore, up 14.45% from last quarter Total Income of Rs 1924.39 crore and up 2.66% from last year same quarter Total Income of Rs 2145.34 crore. The company has reported net profit after tax of Rs 202.50 crore in the latest quarter.The company's top management includes Mr.Deepak C Mehta, Mr.Sanjay Asher, Mrs.Purvi Sheth, Mr.Punit Lalbhai, Mr.Vipul Shah, Mr.Prakash Samudra, Mr.Girish Satarkar, Mr.Meghav Mehta, Mr.Ajay C Mehta, Mr.Sanjay Upadhyay, Mr.Maulik D Mehta, Mr.Dileep Choksi. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2025, the company has a total of 14 Crore shares outstanding.Deepak Nitrite's 4QFY25 earnings print was significantly better than our and consensus expectations primarily on account of government incentives. The company will continue to receive these incentives on the existing phenol complex as well the upcoming polycarbonate complex. On the operational front, advanced intermediates (AI) performance showed sequential improvement. Going ahead, volume normalisation in the AI segment is likely from 2HFY26. Moreover, commissioning of backward integration capex in the AI segment (including nitric acid, photo chlorination) should help lift AI segment margins from 2QFY26, according to JM FInancial. On the phenolics side, benefits of MIBK/MIBC and acetophenone commissioning are likely to flow through from 3QFY26. Besides that, we are also factoring in some improvement in phenol-acetone spreads. There has been a delay in the commissioning of various projects. Hence, on overall basis, the brokerage's FY26-27 EPS estimates are revised downwards by ~1%. Since Deepak Nitrite has the potential to more than quadruple its EBITDA over thenext 5 years, JM Financial maintains their BUY rating on the name with an unchanged Mar?26 target price of Rs 2,305/share (based on 30x Mar?27E EPS).Promoters held 49.28 per cent stake in the company as of 31-Mar-2025, while FIIs owned 6.64 per cent, DIIs 23.22 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
11 minutes ago
- Indian Express
Stocks to Watch on Monday, August 11: SBI, BEML, Tata Motors, Voltas, Info Edge and more
Stocks to Watch: Shares of several companies will remain in focus on Monday (August 11) including SBI, BEML, Tata Motors, Voltas, Info Edge, NBCC, etc. On Friday (August 8), the equity benchmark index Sensex tumbled nearly 1 per cent to slip below the 80,000 level as growing concerns over the impact of the additional US tariff and unabated foreign fund outflows unnerved investors. The 30-share BSE Sensex tanked 765.47 points or 0.95 per cent to settle at 79,857.79. During the day, it tumbled 847.42 points or 1.05 per cent to 79,775.84. The 50-share NSE Nifty dropped 232.85 points or 0.95 per cent to 24,363.30. SBI on Friday posted 12 per cent increase in standalone net profit at Rs 19,160 crore for the first quarter of the current financial year. The bank had earned a net profit of Rs 17,035 crore in the same quarter of previous fiscal year. Total income rose to Rs 1,35,342 crore during June quarter 2025-26, from Rs 1,22,688 crore a year ago, State Bank of India said in a regulatory filing. JK Tyre & Industries Ltd reported a 25 per cent decline in consolidated net profit to Rs 163.35 crore in the first quarter ended June 30, 2025, impacted by higher raw material cost. The company had posted a consolidated net profit of Rs 218.3 crore in the corresponding quarter last fiscal, JK Tyre & Industries Ltd said in a regulatory filing. Consolidated revenue from operations in the quarter under review stood at Rs 3,868.94 crore compared to Rs 3,639.08 crore in the same period a year ago, it added. Apparel manufacturer Page Industries Ltd has reported a 21.52 per cent increase in its net profit to Rs 200.79 crore for the June quarter of FY26, helped by volume growth, supply chain efficiency and cost optimisation. The company had posted a net profit of Rs 165.22 crore during the April-June period a year ago, according to an exchange filing. Tata Motors reported a 62.2 per cent decline in consolidated net profit to Rs 4,003 crore in the June quarter, impacted by volume decline across segments, drop in JLR profits and high base effect due to gain from sale of discontinued operations. The auto major had posted a consolidated net profit of Rs 10,587 crore in the April-June quarter of the previous fiscal, Tata Motors Ltd (TML) said in a regulatory filing. Skills and talent development firm NIIT Ltd posted a 43.6 per cent decline in consolidated net profit to Rs 4.37 crore in the April-June quarter due to headwinds from a turbulent environment in the technology and BFSI sectors. It had reported a profit (attributable to owners of the parent company) of Rs 7.75 crore in the year-ago period, according to a regulatory filing. Online firm Info Edge, which owns and other portals, reported a 34.5 per cent increase in consolidated net profit to Rs 342.8 crore in the June quarter, a company filing said. The company had posted a net profit of Rs 258.8 crore in the same period a year ago. Air-conditioning maker and engineering services provider Voltas Ltd on Friday reported a decline of 58 per cent in its consolidated net profit to Rs 140.61 crore for the June quarter, as unseasonal rains and early arrival of monsoon impacted the cooling business. It had posted a consolidated net profit of Rs 335 crore in the April-June period a year ago, according to a regulatory filing from the Tata Group firm. Aditya Birla Group flagship holding firm Grasim Industries Ltd reported an increase of 33.9 per cent in its net profit to Rs 2,767.08 crore for the June quarter of FY26, led by higher profitability in the cement and chemicals businesses and all-round growth across key businesses. The company has reported a net profit of Rs 2,065.97 crore for the April-June quarter a year ago, according to a regulatory filing. State-run Garden Reach Shipbuilders & Engineers Ltd (GRSE) on Friday reported a 38 per cent year-on-year growth in net profit to Rs 120 crore for the first quarter ended June 30, 2025, driven by robust execution of ongoing projects. GRSE's revenue from operations jumped 30 per cent to Rs 1,310 crore in the June quarter of FY26 from Rs 1,010 crore in the corresponding period last year, the company said in a statement. State-owned NBCC (India) Ltd has reported a 26 per cent increase in its consolidated net profit to Rs 135.03 crore for the first quarter of the current fiscal on higher income. Its net profit stood at Rs 107.19 crore in the year-ago period. The total income grew to Rs 2,465.48 crore during the April-June period of 2025-26 fiscal from Rs 2,196.20 crore in the corresponding period of the preceding year, according to a recent regulatory filing. Defence Minister Rajnath Singh on Sunday laid the foundation stone of the BRAHMA Project (BEML Rail Hub for Manufacturing) to make rail coaches in Madhya Pradesh's Raisen district. The unit will be built by Bharat Earth Movers Limited (BEML) at a cost of Rs 1,800 crore on more than 60 hectares of land at Umaria village in Raisen, near the border of Bhopal district. (With inputs from PTI)
Economic Times
11 minutes ago
- Economic Times
India world's most 'dashing and dynamic' economy, some people not liking it: Rajnath Singh
Synopsis Defence Minister Rajnath Singh lauded India's economy as globally "dashing and dynamic," attributing its growth to the nation's capabilities. He criticized those attempting to hinder India's progress through tariffs and trade barriers. Singh highlighted India's rise in global economic rankings and its increasing defense exports, emphasizing the country's resolve to combat terrorism without religious bias. ANI Rajnath Singh Defence Minister Rajnath Singh on Sunday described India's economy as the world's most "dashing and dynamic" and said some people who have the attitude of "we are everyone's boss" are not liking it. Singh's comments come amid high tariffs announced by US President Donald Trump on goods imported from India. The speed with which India is moving ahead, no power in the world can stop it from becoming a big power globally, Singh said in his address after performing bhoomi pujan of a rail coach manufacturing unit of the Bharat Earth Movers Limited (BEML) in Madhya Pradesh's Raisen district.''Today, if any country has a dashing and dynamic economy, it is India's economy,'' he defence minister, without naming anyone, said some people are not liking the rapid development of India and are unable to digest it. "They think that we are everyone's boss and how is India moving forward so fast? Many people are trying to do something, so that when things made by the hands of Indians in India go to countries of the world, they become more expensive than the things made in those countries, and they become so expensive that the people of the world do not buy them," he 2014, India was at the 11th position in terms of the economy. Today, India is counted among the top four countries of the world (in terms of economy), Singh said."If any country has a rapidly growing economy, it is our India," he added."It means that the country is moving forward and its people are also moving ahead, because if the countrymen do not move forward, India cannot move forward," he said that earlier, things related to defence production were made in the world, by foreigners, and India used to buy from them."But today, many of these things are not only being made on the Indian soil, not only by the hands of Indians, and we are not only fulfilling our needs but we are also exporting to other countries of the world. Countries of the world are buying our goods," he said when Narendra Modi became the prime minister in 2014, only Rs 600 crore worth of Indian defence products were exported to other countries."But now, we are exporting defence products of more than Rs 24,000 crore to countries of the world. This is the power of India. This is the new defence sector of the new India," he pointed out. Singh also mentioned about the terrorist attack in Jammu and Kashmir's Pahalgam, in which 26 persons were killed in April, and said India gave a befitting reply to Pakistan, referring to the Indian military's Operation Sindoor."People were killed (by terrorists) after being asked to identify their religion. We cannot kill people after asking their religion. We do not believe in murder. We do not even kill ants. We have resolved that we will kill people (terrorists) not by looking at their religion, but by looking at their deeds," he said that India's clear stand is that "we will not spare anyone who instigates us."Referring to the rail coach unit, the minister said it is a big gift for the Raisen and Vidisha region in MP and will provide employment to 5,000 Pradesh is moving ahead rapidly in terms of industries as the state has recently received an investment proposal of more than Rs 30 lakh crore, he noted."If the leadership is excellent, development happens rapidly. I think that after a few years, people will start calling Madhya Pradesh a modern state," Singh this unit is ready, the surrounding area will also develop rapidly, he Singh performed the bhoomi pujan of the BEML's rail coach unit to be built at a cost of Rs 1,800 crore at Umaria village in Raisen project has been named BRAHMA (BEML Rail Hub for Manufacturing) and its initial production capacity will be 125 to 200 coaches per year, which is targeted to be increased to 1,100 coaches per year in five years, as per Chief Minister Mohan Yadav, Union Agriculture Minister Shivraj Singh Chouhan and other dignitaries attended the bhoomi pujan programme organised at the Dussehra Ground in Obedullaganj near Umaria. A video message of Railway Minister Ashwini Vaishnaw was broadcast during the programme.
Economic Times
11 minutes ago
- Economic Times
Godrej Properties balance sheet strong, to pursue good land-buying opportunities: Chairperson Pirojsha Godrej
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
