Deepak Nitrite Ltd. share price target

DNL holds a strong market position in India in several of its chosen niches within the chemical industry. DNL's inhouse R&D; has recently helped add successful new products to its line-up and a strong export...

Deepak Nitrite (DEN) delivered 22% revenue growth (2% above our expectations) led by strong performance in the specialty chemicals business.

Sluggish overall volume growth (5%) failed to scupper business growth for overall revenues surged by 19.4% in Q4 - markedly improved from 6.1% in Q1- and operating margin rose by some 30 bps. Striking increases in both interest (34.1%) and depreciation expenses (14.3%) scarcely put brakes on PBT - which rose by a stunning 46.5%. Yet post...

Deepak Nitrite (DEN) delivered 24% topline growth (9% above our expectations) led by optimal capacity utilisation in the basic chemicals business and normalisation of operations at its Roha unit (impa

Deepak Nitrite Ltd: Q3FY18 Result Update : We expect the basic chemicals business to continue showing steady growth on account of demand uptick and supply disruptions from China. The...

Deepak Nitrite Ltd. (DEN) is set to commence commercial operations of acetone-phenol at its 100% subsidiary Deepak Phenolics Ltd. post successful funding of nearly INR 1,250 crore over the...

as compared to the same quarter previous year. The increased profitability is due to the healthy demand in export markets in the Fine & Specialty Chemicals segment and improved realizations in the Basic Chemicals Segment. Recommendation The increased volatility in global prices of major chemicals and improved demand traction due to difficulties in sourcing from China would open up opportunities domestically. Government's focus on eliminating the infrastructure gaps with DNL's focus towards R&D; and developing new variants would benefit the company. Phenol and Acetone's capex will provide DNL a...

Vitality in DNL's basic chemicals business (gross revenues up 12.6%; EBIT up 38.3%) and recognition of insurance claim of Rs 18.33 crs ($2.8m) on account of loss of profits due to business interruption from the fire at its Roha facility last fiscal, failed to buttress revenues (net revenues up a measly 6.1%) last quarter. Delays in getting clearance from local authorities for select high value products in the FSC segment coupled with short supply of some products precluded production of some high margin products. As a result, FSC's gross revenues (excluding insurance claim sum) nosedived...

Misfortune hit DNL's business hard last quarter for the shutdown of its DASDA plant in Hyderabad due to torrential rains was soon followed by a fire in one of the distillation columns of its manufacturing facility at Roha (Maharashtra). Wherefore its income from operations saw the sharpest fall in at least seven quarters and absolute profits showed the lowest reading in thirteen quarters. DASDA plant shutdown (temporary though) accentuated the torpidity in OBA demand for revenues of performance products (erstwhile fluorescent whitening agent) nosedived by a depressing 28.1%....

segments namely basic chemicals, fine and specialty chemicals five manufacturing facilities located at Nandesari, Dahej (Gujarat), Roha, Taloja (Maharashtra) and Hyderabad (Telangana)....