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Economic Times
03-06-2025
- Business
- Economic Times
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 C Mehta, Asher, Sheth, Lalbhai, Shah, Samudra, Satarkar, Mehta, C Mehta, Upadhyay, D Mehta, 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 Nitrite's key products/revenue segments include Fine Chemicals, Export Incentives, Scrap, Sale of services and Other Operating Revenue for the year ending 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 company's top management includes C Mehta, Asher, Sheth, Lalbhai, Shah, Samudra, Satarkar, Mehta, C Mehta, Upadhyay, D Mehta, Choksi. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2025, the company has a total of 14 Crore shares 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.
Time of India
03-06-2025
- Business
- Time of India
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 C Mehta, Asher, Sheth, Lalbhai, Shah, Samudra, Satarkar, Mehta, C Mehta, Upadhyay, D Mehta, 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 Nitrite's key products/revenue segments include Fine Chemicals, Export Incentives, Scrap, Sale of services and Other Operating Revenue for the year ending 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 company's top management includes C Mehta, Asher, Sheth, Lalbhai, Shah, Samudra, Satarkar, Mehta, C Mehta, Upadhyay, D Mehta, Choksi. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2025, the company has a total of 14 Crore shares 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.
Business Standard
29-05-2025
- Business
- Business Standard
Deepak Nitrite rallies after Q4 PAT soars 106% QoQ to Rs 202 cr
Deepak Nitrite jumped 4.30% to Rs 2,086.25 after the company's consolidated net profit surged 106.35% to Rs 202.41 crore on 14.52% increase in revenue from operations to Rs 2,179.69 crore in Q4 FY25 over Q3 FY25. On year on year (YoY) basis, the companys consolidated revenue jumped 2.5%, while net profit declined 20.3% in Q4 FY25. Profit before tax (PBT) declined 20.2% YoY but increased 106% QoQ to Rs 278.71 crore in Q4 FY25. EBITDA stood at Rs 339 crore, up 6% YoY compared with Rs 320 crore posted in corresponding quarter last year. The EBITDA margin remained steady at 15% in Q4 FY25 compared to Q4 FY24. On segmental front, the revenue from advanced intermediates was at Rs 654 crore (down 3% YoY) while revenue from phenolics stood at Rs 1,532 crore, (up 5%) during the period under review. On full year basis, the companys consolidated net profit declined 14% to Rs 697.24 crore on 7.8% increase in revenue from operations to Rs 8,281.93 crore in FY25 over FY24. Deepak C. Mehta, chairman & managing director said: With all projects coming in with entire backward and forward integration we would be poised for much more resilient operations with an improved bottom line performance. In these turbulent times backward and forward integration go a longway in ensuring that ultimate consumers are taken care of and both the commodity and specialty businesses support each other. Our growth plan envisages development of further upstream products like Nitric Acid and downstream products such as MIBK, MIBC, for which capacities are set to be operationalized in the upcoming quarters. These will deepen the degree of integration across our business and strengthen our competitive position. The plan to manufacture polycarbonate resins is also taking more concrete shape and the Board of DCTL has recently approved investments for manufacturing 300 KTA of Phenol, 185 KTA of Acetone and 100 KTA of lsopropyl Alcohol (lPA) including greenfield infrastructure capex for an aggregate investment of about 3,500 crore. This is over and above the present manufacturing capacity of these products and the new capacity of Phenol and Acetone will be ultimately integrated to produce Polycarbonate Resins. This approval along with the previous approval of 5,000 crore of PC resins brings the aggregate investment pipeline for the PC Resin project to around 8,500 crore. As already mentioned, Deepak will be one of the largest single location producers of Phenol and Acetone in the entire world with more than half of the capacity converted into downstream derivatives such as Bisphenol A and PC Resins, etc. With the commitment to increased Research and Development Activity the new R&D Centre is scheduled to be operative during the year. We are already bringing forward new projects that would enhance our position in life sciences business as well as specialty solvents. New Products in the area of Material Sciences are also being considered based on core competencies of Deepak. Meanwhile, the companys board recommended a dividend of Rs 7.50 per share with a face value of Rs 2 per share for FY25, subject to approval of shareholders at ensuing annual general meeting (AGM. The dividend, if approved by shareholders at the ensuing 54th AGM of the company will be paid within 30 days from the date of AGM. Deepak Nitrite is a leading chemical intermediates producer with a diversified portfolio that caters to the dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and home and personal care segments. It also manufactures petrochemical-derived intermediates such as phenolics, acetone, and isopropyl alcohol (IPA) for both domestic and international markets.
