Midcap specialty chemicals company stock gains more than 5% as profit rises over 17% YoY

Stock market today: Shares of Deepak Nitrite, the specialty chemicals manufacturer, rose over 5 per cent in trade on November 8 (Wednesday) after the company posted its earnings for the September quarter (Q2 FY24) on Tuesday after market hours.

At 12:04 am, the stock was up over 3 per cent at Rs 2,162.4, while at the day's high, it notched levels of Rs 2,209.05. In the previous session, ahead of the results, the stock of Deepak Nitrite settled at Rs 2,098.75 apiece on the BSE.

For the reporting quarter, the company's consolidated net profit increased 17.54 per cent on-year to Rs 205.08 crore versus Rs 174.47 crore logged in the same period last year. For the quarter ended June of the current fiscal year, the company's net profit stood at Rs 149.9 crore. The increased net profit during the quarter is largely due to the softness in input costs.

Revenue from operations stood at Rs 1,778.05 crore in Q2 FY24, down 9.3 per cent in comparison to Rs 1961.65 crore realised in the same quarter last year. On the segmental front, the revenue from advanced intermediates stood at Rs 670.2 crore, while that from phenolics was Rs 1,120.13 crore in the reporting quarter.

Shares of Deepak Nitrite have underperformed the benchmarks over the last year, giving a negative return of nearly 8 per cent. However, in the last three years, the stock has been a multi-bagger with a stupendous return of 182 per cent.

The average price target given on the stock is Rs 2,199, implying an upside of 2 per cent.

Alongside the quarterly results, the company announced in the regulatory filing the appointment of Anant Pande as the Chief Manufacturing Officer, with effect from November 23. The company has also shifted its registered and corporate office within the city limits of Vadodara, with effect from November 10, 2023, according to the company's filing with the exchange.

With an m-cap of Rs 29,474 crore, Deepak Nitrite is a mid-cap company. It is in the area of chemical manufacturing. The company's various segments include bulk chemicals and commodities (BCC), fine and specialty chemicals (FSC), and fluorescent whitening agents (FWA).