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Deepak Nitrite Overview

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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Deepak Nitrite Key Financials

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

Deepak Nitrite Share Price

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Volume
Price

Deepak Nitrite Quarterly Price

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Deepak Nitrite Peer Comparison

Deepak Nitrite Quarterly Results

#(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

Deepak Nitrite Profit & Loss

#(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

Growth Rates

# 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%

Deepak Nitrite Balance Sheet

#(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

Deepak Nitrite Cash Flow

#(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

Deepak Nitrite Ratios

# 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

Deepak Nitrite Shareholding Pattern

# 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

Deepak Nitrite News

Deepak Nitrite Pros & Cons

Pros

  • Debtor days have improved from 42.18 to 33.64days.
  • Company is almost debt free.

Cons

  • Promoter holding is low: 49.33%.
  • Stock is trading at 4.1 times its book value.
  • The company has delivered a poor profit growth of 2% over past five years.
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