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Phenol spreads likely to have bottomed out; maintain BUY Deepak Nitrite’s 1QFY24 earnings print was weaker than anticipated on account of sharp decline in phenolics business profitability primarily on account of supply glut arising from China re-opening. Going forward, we expect improvement in phenolics spreads as the company would benefit from the lower feedstock prices. Further, additional phenol volume (from debottlenecking phenolics capacity by 10%) could partly offset if any sus...
Buy Deepak Nitrite Ltd For Target Rs.2,420 - JM Financial Institutional Securities
Our View DN’s reported 1QFY24 operating profit at Rs 2bn (-41% YoY & -40% QoQ), stood below than our and street estimates led by industry wide challenges such as China oversupply leading to weaker phenol prices, inventory destocking, slowdown in EU. DN has utilized its own inventory to be able to take benefit of low prices of raw material. Despite of challenging environment operated plant at 135% utilization in phenolics, though correction in phenolics cracks impacted revenue. AI...
Buy Deepak Nitrite Ltd For Target Rs. 2,355 - Yes Securities
Deepak Nitrite is currently trading at Rs. 1959.60, up by 9.90 points or 0.51% from its previous closing of Rs. 1949.70 on the BSE. The scrip opened at Rs. 1950.00 and has touched a high and low of Rs. 1960.55 and Rs. 1935.00 respectively. So far 4718 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 2355.55 on 03-Nov-2022 and a 52 week low of Rs. 1682.15 on 01-Jul-2022. Last one week high and low of the scrip sto...
Deepak Nitrite gains as its arm signs MoU with Government of Gujarat
Deepak Nitrite’s 4QFY23 earnings print was better than anticipated on account of sharp improvement in phenolics business profitability (after two quarters); in the preceding two quarters the company had to purchase its key raw material (cumene) from the market due to shutdown of the BPCL plant. However, the company‘s advance intermediates performance was weak on account of demand weakness in dyes and pigments segment. Going forward, we expect some moderation in phenol spreads for ...
Buy Deepak Nitrite Ltd For Target Rs.2,660 - JM Financial Institutional Securities
Project delays pose a threat to aggressive capex plans * DN (Deepak Nitrite) reported in-line performance, after adjusting for a government incentive income that was recognized in 4QFY23. The company stated that this incentive is being received in DPL and will persist for the next five to six years. * EBITDA was at INR3.5b, while EBITDA margin was at 17.7% - still at multi-quarter lows. Despite the sequential growth in the margin of the Phenolic division, it declined by 50bp YoY. The AI...
Neutral Deepak Nitrite Ltd For Target Rs.1,775 - Motilal Oswal
Margins improve, prognosis stronger Our View DN’s reported 3QFY23 operating profit at Rs 3.15bn (-11% YoY & +16% QoQ), stood below our but marginally above street estimates. The miss on estimates stemmed primarily form weaker than estimated margins as higher input cost environment posed a challenge. The Ebitda margins, nevertheless improved QoQ to 16% (2Q: 14%) driven by improvement in per ton margins for most products, as DN passed on the increase in raw material price to a l...
Buy Deepak Nitrite Ltd For Target Rs.2,515 - Yes Securities
* Deepak Nitrite has reported a growth of 16.7% in its consolidated revenues at ?19,617 million in Q2-FY23 as against ?16,814 million in Q2-FY22. The performance wan driven by growth in Advanced Intermediates which grew ~20% followed by Phenolics business growing by 12.9% YoY. The overall growth during the quarter was impacted by disruption at company’s Nandesari plant and higher base in previous year quarter in Phenolics business. * On the profitability front, the company’s co...
Buy Deepak Nitrite Ltd For Target Rs.2,650 - Anand Rathi Shares and Stock Brokers
Weak quarter, but prognosis remains strong Our View DN’s reported 2QFY23 operating profit at Rs 2.7bn (-30% YoY & -24% QoQ), stood below our and street estimates, on weaker than expected margins in the phenol segment (DPL). Volatility in raw material prices, along with volatile forex and muted demand impacted the EBIT margins for DPL at 8% (from 14% in 1QFY23 and 19% in 2QFY22). In addition, the plant operation at Nandesari, continued to be restricted on account of repair work...
Add Deepak Nitrite Ltd For Target Rs.2,515 - Yes Securities
Earnings hit by sharp decline in phenol spreads Deepak Nitrite’s 2QFY23 earnings print was weaker than anticipated on account of sharp decline in phenolics business profitability. This was due to a) high inventory carrying cost; and b) purchase of key raw material (cumene) from the market due to shutdown of the BPCL plant. The management expects some of this impact to flow through in 3QFY23 as well. Moreover, weakness in the standalone business was driven by i) partial operations at ...
Buy Deepak Nitrite Ltd For Target Rs.2,845 - JM Financial Institutional Securities
Escorts Ltd Buy Escorts Ltd @ 2008-2012 CMP 2030.85 Stop Loss 1991.30 Target 2027.30/2045.00 Deepak Nitrite Ltd Buy Deepak Nitrite Ltd @ 2084-2088 CMP 2103.15 Stop Loss 2104.20 Target 2070.70/2053.00 To Read Complete Report & Disclaimer Click Here Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html SEBI Registration number INZ...
Stock Picks - Escorts Ltd And Deepak Nitrite Ltd By ICICI Direct
Contraction in Phenol margin, but recovery expected * Deepak Nitrite (DN) reported a miss on our estimate. EBITDA came in 9% lower than our estimate at INR2.7b, while EBITDA margin – at 13.8% – was also below our estimate of 16.3%, the lowest since 1QFY19. The miss was largely due to the Phenolic segment. EBIT margin contracted to 8% in Deepak Phenolics, the lowest since 4QFY20. * Management announced that it has commissioned a project (for an agrochemical product) in Oct&rs...
Neutral Deepak Nitrite Ltd For Target Rs.1890 - Motilal Oswal Financial Services
Samvat 2079 Technical Ideas IDFC LTD (CMP 78.5) : BUY Buying Range: 78.5-76.5 Stop Loss: 70 Target: 100 (27%) • The stock is giving a breakout of the falling trend line on the monthly scale • It is forming a bullish candle on the monthly scale which indicates strong buying interest in the counter • Momentum indicators on the monthly chart is placed in the positive territory which indicates uptrend to continue • Considering the curr...
Samvat 2079 Technical Diwali Picks By Motilal Oswal Financial
BUY ARVIND FASHIONS LTD Scrip : ARVINDFASN; Sentiment: BULLISH; Entry : 310-290; Stop Loss: 230; Target :1 400; Target 2 : 440 *In the calendar year of 2021; ARVINDFASN rallied more than 150% in a matter of just 3 months (From 135 it went above 360 mark). Then after it corrected 61.8% of the entire move and has been consolidating. *At this juncture; it is again on the verge of fresh breakout and that indicates a continuation of the pr...
Diwali 2022 : Technical picks By Anand Rathi Share and Stock Brokers
Widening phenol-acetone spread bodes well The phenol-acetone spread over benzene-propylene has started to move up of late (up ~5% QoQ in 2QFY23TD, Jul’23 spread was the lowest in the last 9 years – refer Exhibits 1 and 2). We believe this to be due to i) sharp correction in propylene prices due to lacklustre downstream demand for propylene derivatives, ii) decline in benzene prices, driven by the drop in crude prices, and iii) rise in phenol prices, led by increase in downstrea...
Buy Deepak Nitrite Ltd For Target Rs.2,895 - JM Financial Institutional Securities
Tata Consumer products Ltd Buy Havells India Ltd @836.00-838.00 CMP 837.45 Stop Loss 829.10Target 843.80/851.00 Deepak Nitrite Ltd Buy Havells India Ltd @2015.00-2019.00CMP 2018.40 Stop Loss 1998.70Target 2034.00/2051.00 To Read Complete Report & Disclaimer Click Here Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html SEBI Registr...
Stock Picks - Tata Consumer products Ltd and Deepak Nitrite Ltd By ICICI Direct
Asian Paints Ltd Buy Asian Paints Ltd @3454.00-3460.00 CMP 3427.85 Stop Loss 3424.30 Target 3487.00/3517.00 Deepak Nitrite Ltd Buy Deepak Nitrite Ltd @2062.00-2066.00??????? CMP 2053.80 Stop Loss 2045.70 Target 2081.00/2098.00 To Read Complete Report & Disclaimer Click Here Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html SEBI Regist...
Stock Picks - Asian Paints Ltd and Deepak Nitrite Ltd By ICICI Direct
The company reported standalone net profit of Rs 97.13 crore for the quarter ended June 30, 2022 as compared to Rs 134.92 crore in the same period last year, registering a year-on-year decline of 28.01 per cent. Net revenue of the company rose substantially by 38.45 per cent at Rs 729.98 crore in April-June quarter of this fiscal as against Rs 527.25 crore in the corresponding period last year. During April-June quarter, operating expenses increased by 53.40 per cent to Rs 590.76 crore fro...
Deepak Nitrite Ltd. Q1 net profit down 28.01% at Rs 97.13 cr
Improved realization & volumes drive revenue growth Our View DN reported a broadly in-line 4QFY22, with operating profits at Rs 4.1bn(-10% YoY; +17% QoQ). While higher raw material and energy prices impacted profitability on YoY, on sequential basis, improved volume and pass through of costs in long term contracts helped improve margins. Going ahead DN expects to sustain revenue/earnings growth momentum through a) incremental passing on of higher costs over 1HFY23, b) higher focus o...
Reduce Deepak Nitrite Ltd For Target Rs.2,120 - Yes Securities
Deepak Nitrite Buy Deepak Nitrite Ltd @ 2068.00-2072.00 CMP 2065.85 TGT 2028.80 SL 2091.40 Mahindra & Mahindra Financial Services Limited Buy Cadila Healthcare Ltd Ltd @ 150.00-151.00 CMP 149.35 TGT 147.60 SL 152.10 To Read Complete Report & Disclaimer Click Here https://secure.icicidirect.com/Content/StaticData/Disclaimer.html Views express by all p...
Stock Picks - Deepak Nitrite Ltd Mahindra & Mahindra Financial Services Ltd By ICICI Direct
Margin continues to decline; demand remains strong * 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 consecutive quarter. However, the same in Basic Intermediates...
Neutral Deepak Nitrite Ltd For Target Rs.2,365 - Motilal Oswal
Raw‐material supply & pricing impact earnings Our View DN consolidated operating profits at Rs 3.5bn (+5% YoY;‐9% QoQ), missed estimates by 14% as volatile raw material prices and restricted availability impacted margins, particularly in the FSC segment. Similarly, Phenolics segment suffered margin contraction on QoQ & YoY basis on account of higher energy prices/ cost of production. The same was however offset by improved profitability in BI and PP segments on stro...
Reduce Deepak Nitrite Ltd For Target Rs.2,100 - Yes Securities
Phenol dented overall profitability Deepak Nitrite (DN) Q3FY22 results came broadly in line with our estimates. DN delivered healthy top-line growth of 39% YoY, driven by pricing gains. However, margins remained under pressure amidst sharp escalation in raw material prices. Higher power cost, logistic challenges and inadequate availability of raw material restricted EBITDA growth to 5%. We recently initiated coverage on DN with BUY (Deepak Nitrite-IC). We believe DN is on solid growth p...
Buy Deepak Nitrite Ltd For Target Rs.3,030 - Edelweiss Financial Services
Deepak Nitrite is currently trading at Rs. 2342.85, up by 17.45 points or 0.75% from its previous closing of Rs. 2325.40 on the BSE. The scrip opened at Rs. 2328.00 and has touched a high and low of Rs. 2385.00 and Rs. 2328.00 respectively. So far 60761 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 3020.00 on 19-Oct-2021 and a 52 week low of Rs. 801.95 on 21-Dec-2020. Last one week high and low of the scrip st...
Deepak Nitrite gains on planning to raise funds
Housing Development Finance Corporation Buy Housing Development Finance Corporation Ltd @ 2723.00-2728.00 CMP 2723.10 TGT 2778.00 SL 2697.40 Deepak Nitrite Buy Deepak Nitrite Ltd @ 2142.00-2146.00 CMP 2140.75 TGT 2187.00 SL 2122.30 To Read Complete Report & Disclaimer Click Here https://secure.icicidirect.com/Content/StaticData/Disclaimer.html  ...
Stock Picks - Housing Development Finance Corporation Ltd and Deepak Nitrite Ltd By ICICI Direct
Focus on advance/high value products intensifies Deepak Nitrite (DN) is an intermediate chemical company, with a diversified business of Basic Chemicals, Fine and Specialty Chemicals, and Performance Products. It manufactures phenol, acetone and isopropyl alcohol (IPA) through its subsidiary, Deepak Phenolics (DPL). Achieved huge success with DPL: To substitute imports, DN started commercial production of phenol, acetone, and IPA in CY18 through DPL. It has established itself as the mos...
Buy Deepak Nitrite Ltd For Target Rs.2,350 - Motilal Oswal
Hindalco Buy Hindalco Industries Ltd @ 394.00-395.00 CMP 394.65 TGT 401.50 SL 390.80 Deepak Nitrite Buy Deepak Nitrite Ltd @ 1945.00-1953.00 CMP 1949.20 TGT 984.00 SL 1930.80 To Read Complete Report & Disclaimer Click Here https://secure.icicidirect.com/Content/StaticData/Disclaimer.html Views express by all participants are...
Stock Picks - Hindalco Industries Ltd and Deepak Nitrite Ltd By ICICI Direct
Bhansali Engineering Polymers Ltd * Stock previously given symmetrical triangle breakout on daily chart and now prices are retesting the breakout zone. * Good volume has been seen at the time of breakout and on retest * Prices are hovering above ichimoku clouds which shows trend is up. Buy Bhansali Engineering Polymers Ltd @ 176 - 177 CMP 176 1-MONTH TARGET 200 SL 166 CB DEEPAK NITRITE LTD * Stock has given triangle breakout on daily chart. * Good ...
Trilogy for the month : Bhansali Engineering Polymers Ltd, Deepak Nitrite Ltd, Sakar Healthcare Ltd By LKP Securities
The company reported standalone net profit of Rs 101.10 crore for the quarter ended March 31, 2021 as compared to Rs 116.26 crore in the same period last year, registering a year-on-year decline of 13.04 per cent. Net revenue of the company rose by 0.09 per cent at Rs 525.70 crore in January-March quarter of this fiscal as against Rs 525.24 crore in the corresponding period last year. During January-March quarter, operating expenses increased by 8.50 per cent to Rs 370.04 crore from Rs 341...
Deepak Nitrite Q4 net profit down 13.04% at Rs 101.10 cr
*After showing a minor declines/sideways consolidation, the stock price has shifted into an upside bounce. * Today’s upmove could be considered as an upside breakout of the narrow range movement/immediate resistance. * The short term trend seems to have turned positive. * We observe a formation of positive candlestick pattern as per intraday/daily/weekly timeframe chart. * Volume has started to rise along with the upmove in the stock price. * The intraday/daily RSI ...
Technical Stock Pick - Buy Deepak Nitrite Ltd For Target Rs. 2014 - HDFC Securities
Voltas Buy Voltas Ltd @ 999.00-1002.00 CMP 1001.35 TGT 1021.00 SL 990.40 Deepak Nitrite Buy Deepak Nitrite Ltd @ 1635.00-1639.00 CMP 1637.05 TGT 1667.00 SL 1621.80 To Read Complete Report & Disclaimer Click Here https://secure.icicidirect.com/Content/StaticData/Disclaimer.html Above views are of the author and not of the website kindly...
Stock Picks - Voltas Ltd and Deepak Nitrite Ltd By ICICI Direct
Bajaj Finance Buy Bajaj Finance Ltd @ 5580.00-5586.00 CMP 5557.70 TGT 5664.00 SL 5542.00 Deepak Nitrite Buy Deepak Nitrite Ltd @ 1608.00-1612.00 CMP 1606.85 TGT 1640.00 SL 1594.90 To Read Complete Report & Disclaimer Click Here https://secure.icicidirect.com/Content/StaticData/Disclaimer.html Views express by all participants are for information & academic purpose only...
Stock Picks - Bajaj Finance and Deepak Nitrite By ICICI Direct
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