Deepak Nitrite Share Price Target 2025: 'Buy', Says ICICI Securities - Here's Why

With the initiation of coverage on Deepak Nitrite, ICICI Securities assigned a 'ADD' rating to the speciality chemicals trader.

In addition to its long history of capital allocation discipline, DN has been de-bottlenecking products, such as phenol, sodium nitrite, and optical brighteners (OBA), to increase capacity.

Deepak Nitrite: Target Price

ICICI Securities has also recommended a target price of Rs 2,120, valuing it at 30x FY27E PE, the report said.

More About Deepak Nitrite

While the company generates strong operating cash flow, it has embarked on large capex into import substitution products, to be the crux of its sustained value creation in the medium term, the report added.

Despite the firm having a large portfolio of bulk chemicals, a higher value is given to its prowess in executing large projects and achieving lowest-cost manufacturing efficiency while capturing dominant market share and the ability to identify good import substitution and cater to the swiftly growing Indian market.

ICICI Securities is also expecting the company to grow in terms of its revenue/EBITDA/PAT at a CAGR of 15%/21%/22% over FY25-27E.

Deepak Nitrate Track Record

With an impressive track record, Deepak Nitrite has a history of significant discipline in capital allocation, and has been increasing its capacities through de-bottlenecking - sodium nitrite, optical brighteners (OBA) and phenol, among others.

Additionally, the firm has also grown volumes profitably and has decided to foray into phenol, which is a global bulk chemical, DPL (subsidiary).

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