Deepak Nitrite shares jump 3% after launching new nitric acid plant in Vadodara, Gujarat

Synopsis: : Deepeak Nitrite announced the start of manufacturing operations at its new Nitric Acid Plant in  Vadodara, Gujarat, by its subsidiary company, Deepak Chem Tech Ltd., and has incurred a capex of Rs. 515 Crores.

This mid-cap company majorly engaged in manufacturing phenolics and advanced intermediates catering industries like automobiles, construction, agrochemicals were in focus followed by commissioning of new plant leading to better revenue.

With the market capitalization of Rs. 21,306 Crores, the shares of Deepak Nitrite touched a high of Rs. 1580, up 3 percent from yesterday’s close of Rs. 1533.80 and trading at a P/E of 40 whereas, five year medium P/E stands at 34.6 and share price being at Rs. 1557.

What is the News: 

Deepak Nitrite has recently updated that its subsidiary Deepak Chem Tech Limited has started manufacturing operations at its new Nitric Acid Plant, built at a total capital expenditure of Rs. 515 crores.

The new plant will help them supply their products to high value industries and strengthen their supply chain since few of the important raw materials are produced internally making them less dependent on suppliers and achieve higher margins. 

Company Overview & Financial Highlights

Deepak Nitrite Ltd, Corporate Headquarters in Vadodara  is engaged in manufacturing phenolics and advanced intermediates catering industries like automobiles, construction, agrochemicals etc. The company has over 34 products in their product portfolio & 7 manufacturing facilities. They have exported their products to over 50 countries across 6 continents. 

They are the largest producer of Phenol & Sodium Nitrite in India. Their new acid unit project is expected to be operational from Q4 of FY26 and MIBK/ MIBC project is progressing well and expected to end by Q4 of FY26. 

It has a few upcoming manufacturing facilities involving  DCTL facilities in Dahej, Deepak Oman Industries LLC & Salala Free Zone (SFZ) Oman. The major revenue contribution of ~70 percent comes from Phenolics and the remaining 30 percent is contributed by Advanced Intermediates.

Year-on-Year analysis: Deepak Nitrite’s revenue is down from Rs. 2032 crores  to Rs. 1902 crores down 6.3  percent, operating profit decreased by 31.5 percent, from Rs. 298 crores  to Rs. 204 crores and Net profit decreased by 38.6  percent from Rs. 194 crores  to Rs. 119 crores. Around 86 percent of the revenue is contributed from the domestic markets, whereas export contributes 14 percent to the revenue. 

Quarter-on-Quarter analysis:  Deepak Nitrite’s revenue has increased on a quarterly basis from Rs. 1890 crores to Rs. 1902 Crores, up by 0.6 percent, operating profit up by 7.3 percent from Rs. 190 crores to Rs. 204 crores and net profit up by 6.25 percent from Rs. 112 crores to Rs. 119 crores.

Written by- Vachan Kadli 

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Deepak Nitrite shares jump 3% after launching new nitric acid plant in Vadodara, Gujarat appeared first on Trade Brains.