Deepak Nitrite is one of the largest chemical companies in India. In recent times most of the chemical and related industry companies’ stocks have been consolidating over the last 1 to 2 years. Let’s see how the Deepak Nitrite share price target for 2024, 2025, and 2026 can perform.
There can be multiple reasons behind the consolidation of the Deepak Nitrite stock and the many other chemical industry companies i.e. supply chain disruption, important raw material, demand, infrastructure, very high competition worldwide, and many more.
As of now, there are more than 40+ companies in India that are working in the chemical industries, as a result, there is very high competition between them. Deepak Nitrite is one of the best companies with good and stable finances.
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About Deepak Nitrite
Deepak Nitrite Limited was founded in 1970 and it is a chemical manufacturing company in India. As of now the current managing director of the company is Mr. Shri. Deepak Mehta.
Deepak Nitrite provides a lot of chemicals for many applications diversity of dyes and pigments, Agrochemicals, Pharmaceuticals, Fuel Additives, Rubber, Paper, Detergents, Personal care, and more They support approximately 56 applications.
There are experts in the following chemical processes Hydrogenation, Alkylation, Nitration, Oxidation, Diazoatization, and Chlorination.
They are present in many countries and supply the products they make. You can check more information about their products, capacity, and achievements on their official website.
Company Fundamentals
From the fundamentals, you can know about the company in detail like the strength of the company, the right value of the company, the position of company among the all companies of the same sector, financial statements, growth of the company, and many more.
Most probably you are a retail investor, It is highly recommended to do a fundamental analysis by yourself of the stocks in which you are investing or already invested. In case, you know how to do a fundamental analysis of companies you can learn it from the Internet.
Note: The fundamentals of the Deepak Nitrite Ltd company were last updated on 02 February 2024. Check the latest data on any broker website or screener.
Profit Growth (Last 5 Years)
| Year | Profits (In Cr.) |
|---|---|
| March 2019 | ₹174 |
| March 2020 | ₹611 |
| March 2021 | ₹776 |
| March 2022 | ₹1,067 |
| March 2023 | ₹852 |
Quarterly Results (Profits)
| Quarter | Profits (In Cr.) |
|---|---|
| Sep 2022 | ₹174 |
| Dec 2022 | ₹209 |
| Mar 2023 | ₹234 |
| Jun 2023 | ₹150 |
| Sep 2023 | ₹205 |
Company Essentials
| Market Cap | ₹30,713Cr | ROE | 18.38% |
| P/E Ratio (TTM) | 38.49 | EPS (TTM) | 58.50 |
| P/B Ratio | 7.07 | Div Yield | 0.33% |
| Industry P/E | 38.04 | Book Value | 318.34 |
| Debt to Equity | 0.02 | Face Value | 2 |
Shareholding Pattern
| Held By | Holding % |
|---|---|
| FII | 6.42% |
| DII | 18.93% |
| Public | 25.52% |
| Promoters | 49.13% |
| Other Holders | 0.0 % |
Key Points
- In the last few quarters, the compnay paid its DEBT and as of now the DEBT is very low and it can be considered a DEBT-free compnay.
- Deepak Nitrite has more than 75+ market share in Sodium Nitrite and NitroTouenes.
- The company has 6+ manufacturing plants in 3 different states In India.
Quarterly Results
Yearly the net profit of the Deepak Nitrite compnay was increasing each year as compared to the last year but in 2023 the profit is approximately down by 20% to 25%.
In Sep 2023, the compnay made a profit of Rs. 205 Crore but the last 4 quarters’ profits are also close to each other there are no major down or rises in the June 2023 Quarter where the compnay made Rs. 150 Crore profit.
Thumb Rules for Investing
Just by doing fundamental analysis, anyone cannot book maximum returns on the stocks. Based on the investors’ experiences a few basic rules become the rules for investing. In short, most retail investors or newbie investors make the below mistake as a result they do not get the maximum return on their investing.
These rules apply to the maximum sectors’ stocks. If you are new in the market or don’t have enough knowledge you should follow the rules to make your self psychology strong.
Rule #1: Do not invest all the money in one sector’s stocks. No matter what is the future of the sector. In case you invested all the money in one sector, if the sector faces any issue, you’ll be in a huge loss.
Rule #2: Invest a maximum of 5% – 6% of the total money in any stock. Suppose you have Rs. 1 Lakh the invest only 5000 – 6000 in any stock. This rule is applicable when you are retail, and can not track all the stocks.
Rule #3: Invest in a maximum of 2-3 stocks of a sector. When any sector faces problems then other sectors’ stock will save you from huge losses.
Rule #4: Invest in stock when the stock the available at a 10% low from its 52-week high. Some people invest in stocks at high, and as a result, they do not get good returns on their investments.
Rule #5: Invest in stocks for at least 5 – 7 years to get very high returns. Keep booking the profit from time to time.
Rule #6: Keep averaging the stock if everything is right in the company and the stock is available at a high discount due to any market crash.
Rule #7: Before Investing in any stock make sure you check its fundamental and related news. It will help you to stay away from the stock which can give you huge losses.
Deepak Nitrite Share Price Target
There is no doubt that Deepak Nitrite is one of the best stocks in the chemical industry. The downfall in the Deepak Nitrite stock and the other stocks of the chemical industry is because of the problems in the industry, supply chain, demand, raw material, very high competition, etc. Not because of problems in the company.
In a previous post, we also shared a post about Laxmi Orgainc’s share price target for 2025. It is also a chemical industry company and facing the same problem as the Deepak Nitrite company.
Disclaimer: We are not SEBI registered. The post is only for educational purposes not for any investing advice. Do your analysis or ask your financial advisor before investing. We will not be responsible for any loss or profit.
Deepak Nitrite Share Price Target 2024
Deepak Nitrite’s share made an all-time high of Rs. 3020 in October 2021. After making an all-time high Deepak Nitrite has been consolidating for more than 2 years. Not only this but almost all the stocks in the chemical sector are consolidating because of the low demand for the chemicals.
Still, the stock is trading approximately 26% down from its all-time high and looking very bearish on the weekly chart timeframe. For short-term trading, there is no advice for the stock.
Deepak Nitrite share price target 2025 & 2026
As the stock is the market leader in the chemical industry an has a market share of more than 75%+ in sodium nitrite and NitroTouenes. The company has a large number of products i.e. 30+ products and has a strong customer base too.
The stock is good but as of now, the chemical industry is not performing well in the last 2 years. It is also very hard to say when it will start performing. So, as of now, many industries like hospitals, AMCs, IT, etc. are going up very rapidly then investing in those stocks can give good returns.
FAQs
As we mentioned above the PE of the company is very high which means the price of the stock is overpriced. In the next few years, there are very high chance that we can see a major fall in the stock. It is also called price correction in technical terms.
There can be many reasons behind the fall i.e. stock price is overpriced, demand, RAW material price high, supply chain disruption, and many more. In the chemical industry, the competition is also very high.
According to the PE ratio, Deepak Nitrite is not good for long-term investments as of now because the PE is very high. In the future, any news can be a reason for a major crash in the stock. So, keep checking its fundamentals regularly in case you want to invest in the stock.
Final Words: Deepak Nitrite is one of the best companies in the chemical industry and has a large customer base and products. The problem is the PE of the stock is very high as a result we can see a major fall in the future. In a few words, as of now, the stock is not good for long-term investing. In case, you are investing, plan your investing very carefully.