Deepak Nitrite Ltd. share price target

DN reported a miss on our estimates. EBITDA came in 8% lower than our estimate at INR3.5b, while EBITDA margin, at 20.4%, was lower than our estimate of 25.1%, the lowest since 4QFY19. Phenolics continued its strong growth, with Basic Intermediates and the Performance Products segment performing well in 3QFY22. EBIT margin in the Fine and Specialty Chemicals fell for the fifth...

DN reported a mixed bag result, with EBITDA 10% higher than our estimate at INR3.9b, while EBITDA margin was lower at 23% (est. 26.7%) the lowest since 4QFY19. Phenolics continue to act as a drag on performance of other segments, as the EBIT margin in Fine and Specialty Chemicals dip for the fourth consecutive quarter and the same for Basic Chemicals normalize. EBIT mix continues to remain largely the same for the last three quarters, with contribution from Phenolics at 63% (up from an average of 51% in FY21). This comes at the cost of a decline in contribution from the most margin lucrative Fine...

Bolstered by phenolics and fine & speciality chemicals business, DNL's income from operations rose apace in Q4 with the phenolics accounting for nearly two-thirds of the whole. Swiftly pacing, its phenol business logged capacity utilization in excess of 115% when compared to 98% in the same quarter a year ago. With little scoping of draining out reward of operating leverage at such record production churn, its EBIT margins admirably...

A stellar quarter

Deepak Nitrite Limited manufactures chemical intermediates.

Strong quarter; commentary on capex encouraging

Though Deepak Nitrite's (DEN) Q1FY21 performance was impacted by the novel coronavirus.

Deepak Nitrite (DEN) posted another strong performance in Q4FY20. Impact from COVID-19 led nationwide lockdown was counterbalanced by consistent margin profiles across business segments.

Dazzled by all but miraculous showing of DNL's barely pretentious performance products business in last few quarters, DNL's consolidated PBT surged by all but astonishing 377.6% in the first nine months of FY20 compared to that in the same period a year ago. Thanks to pinched supply of DASDA globally, DNL's performance products business EBIT leapfrogged nearly tenfold in the reported period, though sales advanced by a miserly 2x. Yet margins of performance products have moderated in last few quarters, declining to 54.1% in Q3 from 58.1% in Q1, with further...

Deepak Nitrite Ltd (DEN) posted solid Q3FY20 performance as the results for all the three segments in their base business remained strong.