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Multibagger stock: Deepak Nitrite up by more than 240 per cent in one year

Shreya Chaware
/ Categories: Mindshare, DSIJ News
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Multibagger stock: Deepak Nitrite up by more than 240 per cent in one year

Deepak Nitrite Limited (DNL) is a trusted name in the chemical industry, having a product portfolio of basic chemicals, fine & speciality chemicals and performance products. The company's stock was trading at Rs 518.10 at the same time last year whereas today, it is trading at Rs 1,775, which records a 242.60 per cent rise. The stock clocked gains of 13.54 per cent in the last one month whereas around 123 per cent in the last six months. 

The gradual growth depicted by Deepak Phenolics Ltd (DPL), the wholly-owned subsidiary of DNL as well as its strong growth in fine & specialty chemicals segment can be attributed to growth in the business of the company. Also, good recovery in the basic chemicals segment for the past nine months coupled with DPL making its IPA (indole-3-propionic acid) plant’s capacity to 60 ktpa in FY22 is further boosting the company's growth. The company also reports that it intends to introduce new chemistries like fluorination and photochlorination into its product portfolio. DNL along with its segments and subsidiaries has depicted sturdy financial as well as operational performance in Q4FY21. 

The phenol plant of DPL is already running at 115 per cent utilisation since the second quarter of FY21. Also, the IPA prices can be predicted to decline as the demand is back to normal. These can identify as reasons, which could limit the growth potential of the company. Having said all these, if the company demonstrates its competencies over a period of time, it will be able to capture the agrochemical and pharmaceutical customers for DNL as well as pave the way for the company's growth in the future. 

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