Chemicals & Petrochemicals
Deepak Nitrite is a prominent Specialty Chemicals company, listed under the stock ticker DEEPAKNTR. With a substantial market capitalization of Rs. 27,128.6 Crores, it specializes in the manufacture, trade, and sale of chemical intermediates both within India and internationally.
The company operates through two main segments: Advanced Intermediates and Phenolics. Its diverse product portfolio includes:
Additionally, Deepak Nitrite provides crucial chemicals such as cumene, phenol, acetone, isopropyl alcohol, and alpha methyl styrene for applications across laminate and plywood, automotive, construction, pharmaceuticals, and more.
The company has a comprehensive product range, including deepwhite powders and liquids, various nitrotoluidines, and protective products that cater to a wide array of industries. It also engages in project engineering, procurement, construction, commissioning, management, and consultancy services.
Founded in 1970 and headquartered in Vadodara, India, Deepak Nitrite has demonstrated impressive performance with a trailing 12-month revenue of Rs. 8,308.7 Crores. The company is committed to delivering value to its investors, illustrated by a dividend yield of 0.34% per year, paying out Rs. 7.5 as a dividend per share over the past year. Notably, it has achieved a 29% revenue growth over the last three years.
Profitability: Recent profitability of 9% is a good sign.
Smart Money: Smart money has been increasing their position in the stock.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Size: Market Cap wise it is among the top 20% companies of india.
Balance Sheet: Strong Balance Sheet.
Momentum: Stock has a weak negative price momentum.
Comprehensive comparison against sector averages
DEEPAKNTR metrics compared to Chemicals
Category | DEEPAKNTR | Chemicals |
---|---|---|
PE | 35.73 | 54.41 |
PS | 3.22 | 4.58 |
Growth | 9.4 % | 7.3 % |
DEEPAKNTR vs Chemicals (2021 - 2025)
Understand Deepak Nitrite ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
Deepak Chimanlal Mehta | 16.52% |
Life Insurance Corporation Of India | 9.47% |
Stiffen Credits And Capital Pvt Ltd | 6.19% |
Checkpoint Credits And Capital Pvt Ltd | 5.28% |
Stepup Credits And Capital Pvt Ltd | 5.07% |
Stigma Credits And Capital P Ltd | 4.54% |
Deepak Novochem Technologies Limited | 3.41% |
Kotak Emerging Equity Scheme | 3.17% |
Skyrose Finvest Pvt Ltd | 2.81% |
Franklin India Smaller Companies Fund | 2.39% |
Mirae Asset Large & Midcap Fund | 1.92% |
Pranawa Leafin Pvt Ltd | 1.69% |
Forex Leafin Pvt Ltd | 1.59% |
Nippon Life India Trustee Ltd-A/C Nippon India Small Cap Fund | 1.29% |
Storewell Credits And Capital Private Ltd | 0.65% |
Sundown Finvest Pvt Ltd | 0.61% |
Ila Deepak Mehta | 0.44% |
Hardik Leafin Pvt Ltd | 0.25% |
Maulik Deepak Mehta | 0.1% |
Prahaan Maulik Mehta | 0.03% |
Distribution across major stakeholders
Distribution across major institutional holders
Valuation | |
---|---|
Market Cap | 26.98 kCr |
Price/Earnings (Trailing) | 36.03 |
Price/Sales (Trailing) | 3.25 |
EV/EBITDA | 21.82 |
Price/Free Cashflow | 250.74 |
MarketCap/EBT | 26.37 |
Fundamentals | |
---|---|
Revenue (TTM) | 8.31 kCr |
Rev. Growth (Yr) | -4.86% |
Rev. Growth (Qtr) | -6.28% |
Earnings (TTM) | 748.71 Cr |
Earnings Growth (Yr) | -51.43% |
Earnings Growth (Qtr) | -49.47% |
Profitability | |
---|---|
Operating Margin | 11.35% |
EBT Margin | 12.31% |
Return on Equity | 14.61% |
Return on Assets | 10.68% |
Free Cashflow Yield | 0.40% |
Analysis of Deepak Nitrite's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
Phenolics | 71.2% | 1.4 kCr |
Advanced Intermediates | 28.8% | 551.7 Cr |
Total | 1.9 kCr |
Investor Care | |
---|---|
Dividend Yield | 0.34% |
Dividend/Share (TTM) | 7.5 |
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | 54.89 |
Financial Health | |
---|---|
Current Ratio | 3.8 |
Debt/Equity | 0.15 |
Debt/Cashflow | 4.05 |
Summary of Deepak Nitrite's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook & Key Points:
Deepak Nitrite's management remains optimistic about recovery and growth despite Q3 challenges, attributing temporary setbacks to plant shutdowns, delayed project commissioning, and raw material cost pressures.
Key Strategic Initiatives & Outlook:
Segmental Recovery:
Project Pipeline:
Financial Resilience: Strong balance sheet (net worth: Rs.5,222 crore consolidated) with low leverage to fund expansions. Cost optimization and backward integration (e.g., ammonia sourcing) to enhance margins.
Market Positioning: Focus on sustainability (improved carbon footprint) and customer retention. Government anti-dumping investigations on dye intermediates to support pricing power.
Summary: Management anticipates sequential improvement in Q4 FY25, with full normalization across segments by H1 FY26. Strategic projects and integration efforts aim to solidify leadership in specialty chemicals and polymers, supported by robust domestic demand and operational efficiency.
Last updated: Feb 25
Question 1:
When we compare our standalone business, the top-line between Q2 to Q3 fell by ~Rs.53 crore, but EBITDA impact was ~Rs.33 crore. Did deferred agro-intermediate sales (higher margin) cause this, or was raw material cost the key driver?
Answer: Agro-intermediate delays (higher margin) and idled plants contributed, but stubborn raw material costs (e.g., toluene, caustic lye) also pressured margins. Demand recovery began in late Q3, with normalization expected in Q4"“Q1.
Question 2:
Can the Q3 lost performance be recouped in Q4, or will recovery spill into Q1?
Answer: Majority of recovery expected in Q4, aided by resumed exports and domestic demand. Partial normalization may extend to Q1.
Question 3:
Provide updates on the nitric acid plant's capex and annual savings. How will ammonia supply be managed?
Answer: Capex aligned with initial plans (delay-related overheads capitalized). Annual margin expansion: Rs.70"“80 crore. Ammonia sourcing diversified via domestic/international contracts and storage infrastructure to mitigate volatility.
Question 4:
Why did Phenolics EBIT drop 40% QoQ? Breakdown volume vs. spread impact.
Answer: Primarily due to scheduled maintenance shutdown (volume loss) and spread compression from imported phenol. Post-shutdown, throughput improved. Spread normalization expected from March.
Question 5:
What drives global phenol spread recovery: demand revival or supply curtailment?
Answer: Indian demand remains robust. Non-integrated global plants face low utilization, but spreads hinge on raw material (benzene, propylene) volatility. No imminent supply cuts anticipated.
Question 6:
Clarify polymer project timelines: phased commissioning or all by FY28?
Answer: All projects (polycarbonate, BPA, etc.) to be integrated and commissioned by FY28. Some components may start earlier but synced for full operational synergy.
Question 7:
When will profitability normalize? What's the volume/margin trajectory?
Answer: Q4 EBITDA to improve "meaningfully" vs. Q3. Full normalization (pre-downturn margins) expected by Q1"“Q2 FY26, driven by demand recovery and cost optimization.
Question 8:
Will Advanced Intermediates' margins face structural decline post-recovery?
Answer: Target normalized standalone EBIT margin of 17"“18% (vs. 3% in Q3), aided by cost initiatives and non-agro diversification (e.g., personal care, solvents).
Question 9:
Confirm Phenolics' annual capacity (350K MT?) and Ag chem intermediate demand outlook.
Answer: Phenolics capacity: ~350K MT annually. Ag chem demand recovery linked to global destocking尾声, with a 1-quarter lag. Mid-single-digit volume growth expected in CY25.
Question 10:
Address ROCE concerns due to project delays. How to ensure polymer capex execution?
Answer: Delays stemmed from in-house tech integration (e.g., MIBK/MIBC). Future polymer projects (licensed tech) to avoid such issues. ROCE to improve post-commissioning via scale and integration.
Question 11:
Why did Phenolics' revenue dip only 5% despite 15K MT production loss?
Answer: Sales maintained via pre-shutdown inventory. EBIT drop due to shutdown costs (fixed expenses), spread compression, and temporary imports.
Question 12:
Rationale for acetophenone project: backward integration or new market?
Answer: Forward integration into pharma/life sciences via phenol/acetone valorization. Enhances margins and diversifies product mix.
Detailed comparison of Deepak Nitrite against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
SRF | SRFSpecialty Chemicals | 90.12 kCr | 14.07 kCr | +3.44% | +15.13% | 78.58 | 6.4 | +4.78% | -22.29% |
ALKEM | Alkem LabPharmaceuticals | 60.09 kCr | 13.19 kCr | +2.95% | +2.35% | 27.35 | 4.55 | +2.06% | +39.55% |
ATUL | AtulSpecialty Chemicals | 19.14 kCr | 5.42 kCr | +5.92% | +9.62% | 44.77 | 3.53 | +13.37% | +19.56% |
VINATIORGA | Vinati OrganicsSpecialty Chemicals | 17.42 kCr | 2.2 kCr | +6.29% | +2.40% | 45.09 | 7.93 | +16.41% | +7.41% |
AARTIIND | Aarti IndustriesSpecialty Chemicals | 15.72 kCr | 7.11 kCr | +10.98% | -42.02% | 42.84 | 2.21 | +13.53% | -15.30% |
ALKYLAMINE | Alkyl Amines ChemicalsSpecialty Chemicals | 9.15 kCr | 1.57 kCr | +10.62% | -13.83% | 51.27 | 5.85 | +3.61% | +12.23% |
BALAMINES | Balaji AminesSpecialty Chemicals | 4.17 kCr | 1.49 kCr | +6.57% | -42.09% | 21.86 | 2.79 | -13.51% | -11.35% |