WEBSITE BSE:506401 NSE: DEEPAKNTR Inc. Year: 1970 Industry: Chemicals My Bucket: Add Stock
Last updated: 15:57
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1. Business Overview
Deepak Nitrite Ltd. is a leading Indian chemical manufacturer specializing in a diverse range of chemicals. The company operates across various segments, producing basic chemicals, fine & specialty chemicals, phenolics (phenol, acetone, and isopropyl alcohol), and optical brightening agents (OBAs). Its products serve a wide array of end-user industries including dyes and pigments, agrochemicals, pharmaceuticals, plastics, textiles, automotive, laminates, adhesives, and food processing. Deepak Nitrite makes money by manufacturing these chemicals at scale and selling them to industrial customers both domestically and internationally.
2. Key Segments / Revenue Mix
Deepak Nitrite primarily operates through the following key segments:
Basic Chemicals (BC): Produces various intermediates for dyes, pigments, rubber, and other industrial applications.
Fine & Specialty Chemicals (FSC): Focuses on more complex, value-added products for agrochemicals, pharmaceuticals, personal care, and other specialty applications, often involving multi-step synthesis.
Phenolics: Manufactures phenol, acetone, and isopropyl alcohol (IPA), which are critical building blocks for industries like laminates, plywood, automotive, pharmaceuticals, and adhesives. This segment is typically a significant revenue contributor.
Optical Brightening Agents (OBAs): Produces agents used in detergents, paper, and textiles to enhance whiteness and brightness.
3. Industry & Positioning
Deepak Nitrite operates in the highly diverse and growing Indian chemical industry. The industry is characterized by increasing domestic consumption, import substitution opportunities, and a global shift towards India ("China+1 strategy") as a manufacturing base. Deepak Nitrite is positioned as one of India's largest and most integrated chemical manufacturers. It holds strong market positions in several of its product categories, particularly as a leading producer of phenol and acetone in India. The company's diversified product portfolio and backward integration capabilities distinguish it from many smaller, less integrated players.
4. Competitive Advantage (Moat)
Backward Integration: Extensive backward integration in several product lines (e.g., phenolics complex) provides cost advantages, ensures raw material security, and reduces supply chain risks.
Scale & Technology: Significant manufacturing scale, especially in basic chemicals and phenolics, allows for economies of scale and efficient operations. Proprietary process technologies in specialty chemicals contribute to product quality and cost efficiency.
Diversified Product Portfolio & End-User Markets: Reduces dependence on any single product or industry, making the company more resilient to demand fluctuations in specific sectors.
Strong Customer Relationships & Approvals: Especially in Fine & Specialty Chemicals, long-standing relationships and product approvals from global clients create high switching costs for customers.
Cost Leadership: In certain commodity basic chemicals, due to scale, integration, and process efficiency.
5. Growth Drivers
Growing Domestic Demand: Increasing consumption across end-user industries like agrochemicals, pharmaceuticals, automotive, construction, and textiles in India.
"China+1" Strategy: Global manufacturers diversifying their supply chains away from China, leading to increased demand and opportunities for Indian chemical players.
Import Substitution: Government initiatives and domestic industry push to reduce reliance on imported chemicals.
Capacity Expansion: Ongoing strategic capital expenditure projects to expand capacity in existing and new product lines, particularly in high-margin specialty chemicals and downstream phenolic derivatives.
Value-Added Products: Focus on moving up the value chain by developing more complex and higher-margin specialty chemicals.
6. Risks
Raw Material Price Volatility: Prices of key raw materials (e.g., benzene, propylene, crude oil derivatives) are subject to global commodity price fluctuations, impacting margins.
Environmental & Regulatory Risks: Stringent environmental norms and regulations can lead to increased compliance costs, operational disruptions, or penalties.
Global Economic Slowdown: A downturn in global economic activity can reduce demand from key end-user industries, impacting sales and profitability.
Currency Fluctuations: Exposure to currency movements can affect import costs and export revenues.
Competition: Intense competition from domestic and international players can put pressure on pricing and market share.
Project Execution Risk: Delays or cost overruns in large capacity expansion projects.
7. Management & Ownership
Deepak Nitrite is promoted and managed by the Mehta family, with Mr. Deepak C. Mehta as the Chairman & Managing Director. The management is generally perceived to be experienced and strategic, focusing on sustained growth through backward integration, capacity expansions, and diversification into higher-value products. The ownership structure is promoter-controlled, with a significant portion held by institutional investors and the public.
8. Outlook
Deepak Nitrite is well-positioned to capitalize on the structural growth trends in the Indian chemical industry, driven by rising domestic demand, import substitution, and the global "China+1" tailwind. The company's integrated operations, diversified product portfolio, and strategic focus on specialty chemicals provide a degree of resilience and margin expansion potential. However, its performance remains susceptible to the inherent volatility of commodity chemical cycles, particularly raw material price fluctuations, and global economic headwinds. Successful execution of ongoing capacity expansions and continued migration towards higher-value products will be key determinants of its sustained growth.
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Market Cap ₹23848 Cr.
Stock P/E 34.2
P/B 4.1
Current Price ₹1748.5
Book Value ₹ 427.9
Face Value 2
52W High ₹2173
Dividend Yield 0.43%
52W Low ₹ 1280.4
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 2009 | 2126 | 2167 | 2032 | 1903 | 2180 | 1890 | 1902 | 1975 | 2120 |
| Other Income | 14 | 19 | 19 | 21 | 21 | 23 | 25 | 20 | 9 | 7 |
| Total Income | 2023 | 2145 | 2186 | 2053 | 1924 | 2202 | 1914 | 1922 | 1983 | 2127 |
| Total Expenditure | 1705 | 1825 | 1858 | 1734 | 1735 | 1863 | 1700 | 1698 | 1764 | 1744 |
| Operating Profit | 318 | 320 | 328 | 319 | 190 | 339 | 214 | 224 | 219 | 383 |
| Interest | 3 | 4 | 6 | 6 | 6 | 9 | 8 | 8 | 11 | 19 |
| Depreciation | 42 | 46 | 47 | 48 | 48 | 51 | 51 | 53 | 58 | 63 |
| Exceptional Income / Expenses | 0 | 80 | 0 | 0 | 0 | 0 | 0 | 0 | -13 | 0 |
| Profit Before Tax | 274 | 349 | 275 | 264 | 135 | 279 | 155 | 163 | 138 | 301 |
| Provision for Tax | 72 | 95 | 72 | 70 | 37 | 76 | 42 | 44 | 38 | 82 |
| Profit After Tax | 202 | 254 | 203 | 194 | 98 | 203 | 112 | 119 | 100 | 220 |
| Adjustments | 0 | 0 | 0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 |
| Profit After Adjustments | 202 | 254 | 203 | 194 | 98 | 202 | 112 | 119 | 100 | 220 |
| Adjusted Earnings Per Share | 14.8 | 18.6 | 14.8 | 14.2 | 7.2 | 14.8 | 8.2 | 8.7 | 7.3 | 16.1 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 1327 | 1373 | 1371 | 1651 | 2700 | 4230 | 4360 | 6802 | 7972 | 7682 | 8282 | 7887 |
| Other Income | 5 | 2 | 13 | 12 | 18 | 36 | 27 | 54 | 48 | 76 | 84 | 61 |
| Total Income | 1332 | 1375 | 1383 | 1664 | 2718 | 4265 | 4387 | 6856 | 8020 | 7758 | 8366 | 7946 |
| Total Expenditure | 1191 | 1207 | 1234 | 1453 | 2286 | 3201 | 3115 | 5207 | 6681 | 6555 | 7187 | 6906 |
| Operating Profit | 141 | 168 | 149 | 211 | 432 | 1064 | 1272 | 1649 | 1339 | 1203 | 1179 | 1040 |
| Interest | 38 | 40 | 37 | 47 | 87 | 118 | 77 | 36 | 27 | 15 | 31 | 46 |
| Depreciation | 36 | 40 | 48 | 53 | 78 | 140 | 153 | 178 | 166 | 166 | 195 | 225 |
| Exceptional Income / Expenses | 0 | 0 | 70 | 0 | 0 | 0 | 0 | 0 | 0 | 80 | 0 | -13 |
| Profit Before Tax | 67 | 89 | 135 | 111 | 268 | 806 | 1042 | 1434 | 1146 | 1102 | 953 | 757 |
| Provision for Tax | 14 | 26 | 38 | 32 | 94 | 195 | 266 | 368 | 294 | 291 | 255 | 206 |
| Profit After Tax | 53 | 63 | 96 | 79 | 174 | 611 | 776 | 1067 | 852 | 811 | 697 | 551 |
| Adjustments | -0 | -0 | 0 | 1 | -3 | -4 | 0 | 0 | 0 | 0 | -0 | 0 |
| Profit After Adjustments | 53 | 63 | 96 | 80 | 171 | 607 | 776 | 1067 | 852 | 811 | 697 | 551 |
| Adjusted Earnings Per Share | 5.1 | 5.4 | 7.4 | 5.8 | 12.5 | 44.5 | 56.9 | 78.2 | 62.5 | 59.5 | 51.1 | 40.3 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 8% | 7% | 14% | 20% |
| Operating Profit CAGR | -2% | -11% | 2% | 24% |
| PAT CAGR | -14% | -13% | 3% | 29% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -17% | -4% | -1% | 37% |
| ROE Average | 14% | 18% | 26% | 24% |
| ROCE Average | 17% | 24% | 31% | 24% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 346 | 473 | 715 | 922 | 1072 | 1572 | 2347 | 3338 | 4090 | 4797 | 5389 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 26 | 36 |
| Borrowings | 239 | 159 | 218 | 550 | 870 | 779 | 524 | 187 | 43 | 217 | 1026 |
| Other Non-Current Liabilities | 54 | 64 | 47 | 70 | 103 | 108 | 136 | 158 | 202 | 269 | 333 |
| Total Current Liabilities | 484 | 598 | 807 | 1048 | 884 | 749 | 553 | 747 | 794 | 785 | 923 |
| Total Liabilities | 1123 | 1294 | 1787 | 2591 | 2928 | 3209 | 3560 | 4430 | 5129 | 6094 | 7706 |
| Fixed Assets | 549 | 598 | 586 | 588 | 1716 | 1832 | 1864 | 1963 | 1942 | 2293 | 2457 |
| Other Non-Current Assets | 101 | 115 | 451 | 1010 | 50 | 220 | 244 | 182 | 448 | 960 | 1952 |
| Total Current Assets | 473 | 581 | 751 | 993 | 1162 | 1156 | 1452 | 2285 | 2739 | 2842 | 3297 |
| Total Assets | 1123 | 1294 | 1787 | 2591 | 2928 | 3209 | 3560 | 4430 | 5129 | 6094 | 7706 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 6 | 3 | 5 | 6 | 9 | 3 | 2 | 9 | 23 | 38 | 238 |
| Cash Flow from Operating Activities | 108 | 167 | 49 | 183 | 60 | 765 | 1002 | 824 | 650 | 874 | 625 |
| Cash Flow from Investing Activities | -89 | -169 | -353 | -525 | -163 | -428 | -396 | -424 | -276 | -718 | -1491 |
| Cash Flow from Financing Activities | -22 | 4 | 305 | 345 | 96 | -338 | -599 | -386 | -359 | 44 | 806 |
| Net Cash Inflow / Outflow | -3 | 2 | 1 | 4 | -6 | -1 | 7 | 14 | 15 | 200 | -60 |
| Closing Cash & Cash Equivalent | 3 | 5 | 6 | 9 | 3 | 2 | 9 | 23 | 38 | 238 | 179 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 5.06 | 5.39 | 7.37 | 5.85 | 12.52 | 44.52 | 56.88 | 78.2 | 62.46 | 59.45 | 51.12 |
| CEPS(Rs) | 8.52 | 8.81 | 11.04 | 9.65 | 18.43 | 55.04 | 68.07 | 91.23 | 74.66 | 71.59 | 65.45 |
| DPS(Rs) | 1 | 1.2 | 1.2 | 1.3 | 2 | 4.5 | 5.5 | 7 | 7.5 | 7.5 | 7.5 |
| Book NAV/Share(Rs) | 33.04 | 40.6 | 54.69 | 67.61 | 78.56 | 115.24 | 172.04 | 244.75 | 299.85 | 351.66 | 395.06 |
| Core EBITDA Margin(%) | 9.65 | 11.42 | 9.37 | 11.84 | 15.34 | 24.32 | 28.55 | 23.28 | 16.04 | 14.53 | 13.13 |
| EBIT Margin(%) | 7.44 | 8.84 | 11.76 | 9.44 | 13.13 | 21.85 | 25.67 | 21.47 | 14.57 | 14.41 | 11.79 |
| Pre Tax Margin(%) | 4.75 | 6.12 | 9.25 | 6.61 | 9.93 | 19.07 | 23.89 | 20.94 | 14.23 | 14.21 | 11.42 |
| PAT Margin (%) | 3.74 | 4.32 | 6.62 | 4.71 | 6.43 | 14.45 | 17.79 | 15.57 | 10.58 | 10.46 | 8.36 |
| Cash Profit Margin (%) | 6.29 | 7.03 | 9.92 | 7.85 | 9.31 | 17.75 | 21.3 | 18.16 | 12.65 | 12.6 | 10.7 |
| ROA(%) | 7.69 | 5.2 | 6.25 | 3.61 | 6.29 | 19.91 | 22.92 | 26.7 | 17.83 | 14.45 | 10.11 |
| ROE(%) | 25.83 | 15.39 | 16.23 | 9.65 | 17.42 | 46.23 | 39.6 | 37.52 | 22.94 | 18.25 | 13.69 |
| ROCE(%) | 19.8 | 13.63 | 14.03 | 9.46 | 17.02 | 37.56 | 40.06 | 44.82 | 30.13 | 24.39 | 17 |
| Receivable days | 45.84 | 78.18 | 84.5 | 84.07 | 66.7 | 51.25 | 57.31 | 50.23 | 55.28 | 61.39 | 56.28 |
| Inventory Days | 18.71 | 28.31 | 36.15 | 53.63 | 49.76 | 34.74 | 32.53 | 25.77 | 33.5 | 38.91 | 36.9 |
| Payable days | 31.74 | 55.24 | 77.06 | 127.16 | 108.41 | 65.23 | 65.57 | 42.56 | 40.38 | 42.18 | 33.64 |
| PER(x) | 13.42 | 12.56 | 17.81 | 42.57 | 21.93 | 8.68 | 29.13 | 28.7 | 29.49 | 35.69 | 38.79 |
| Price/Book(x) | 2.05 | 1.67 | 2.4 | 3.68 | 3.5 | 3.35 | 9.63 | 9.17 | 6.14 | 6.03 | 5.02 |
| Dividend Yield(%) | 1.47 | 1.77 | 0.91 | 0.52 | 0.73 | 1.16 | 0.33 | 0.31 | 0.41 | 0.35 | 0.38 |
| EV/Net Sales(x) | 0.94 | 0.95 | 1.77 | 2.62 | 1.82 | 1.5 | 5.31 | 4.54 | 3.15 | 3.73 | 3.36 |
| EV/Core EBITDA(x) | 8.85 | 7.78 | 16.3 | 20.55 | 11.35 | 5.95 | 18.2 | 18.73 | 18.78 | 23.86 | 23.59 |
| Net Sales Growth(%) | 418.52 | 3.45 | -0.16 | 20.48 | 63.49 | 56.66 | 3.07 | 56.02 | 17.2 | -3.64 | 7.81 |
| EBIT Growth(%) | 280.11 | 22.38 | 32.79 | -7.5 | 124 | 160.73 | 21.06 | 31.43 | -20.28 | -4.75 | -11.93 |
| PAT Growth(%) | 428.45 | 18.7 | 53.12 | -17.96 | 119.78 | 251.85 | 26.97 | 37.49 | -20.12 | -4.83 | -14 |
| EPS Growth(%) | 234.68 | 6.6 | 36.59 | -20.66 | 114.17 | 255.57 | 27.77 | 37.49 | -20.12 | -4.82 | -14.02 |
| Debt/Equity(x) | 1.58 | 1.12 | 1.01 | 1.07 | 1.11 | 0.69 | 0.25 | 0.09 | 0.01 | 0.05 | 0.22 |
| Current Ratio(x) | 0.98 | 0.97 | 0.93 | 0.95 | 1.31 | 1.54 | 2.62 | 3.06 | 3.45 | 3.62 | 3.57 |
| Quick Ratio(x) | 0.76 | 0.77 | 0.72 | 0.64 | 0.85 | 1.02 | 1.93 | 2.28 | 2.33 | 2.65 | 2.57 |
| Interest Cover(x) | 2.77 | 3.24 | 4.68 | 3.34 | 4.1 | 7.84 | 14.47 | 40.44 | 43.95 | 73.96 | 31.93 |
| Total Debt/Mcap(x) | 0.77 | 0.67 | 0.42 | 0.29 | 0.32 | 0.21 | 0.03 | 0.01 | 0 | 0.01 | 0.04 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 49.13 | 49.13 | 49.24 | 49.24 | 49.24 | 49.28 | 49.28 | 49.28 | 49.33 | 49.33 |
| FII | 6.42 | 6.66 | 6.86 | 6.69 | 6.6 | 6.65 | 6.68 | 6.21 | 6.05 | 6.19 |
| DII | 18.93 | 19.33 | 21.21 | 22.29 | 23.22 | 23.22 | 22.62 | 22.7 | 23.2 | 23.47 |
| Public | 25.52 | 24.88 | 22.7 | 21.78 | 20.94 | 20.85 | 21.43 | 21.81 | 21.42 | 21.01 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 6.7 | 6.7 | 6.72 | 6.72 | 6.72 | 6.72 | 6.72 | 6.72 | 6.73 | 6.73 |
| FII | 0.88 | 0.91 | 0.94 | 0.91 | 0.9 | 0.91 | 0.91 | 0.85 | 0.83 | 0.84 |
| DII | 2.58 | 2.64 | 2.89 | 3.04 | 3.17 | 3.17 | 3.08 | 3.1 | 3.16 | 3.2 |
| Public | 3.48 | 3.39 | 3.1 | 2.97 | 2.86 | 2.84 | 2.92 | 2.98 | 2.92 | 2.87 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 13.64 | 13.64 | 13.64 | 13.64 | 13.64 | 13.64 | 13.64 | 13.64 | 13.64 | 13.64 |
* The pros and cons are machine generated.
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