Please refer to important disclosures at the end of this report
Deepak Nitrite is a chemical manufacturing company. The company offers sodium
nitrite, 2 Ethyl Hexyl Nitrate and optical brightening agent.DNL has a diversified
portfolio consisting of three segments namely, Basic Chemicals, Fine & Specialty
Chemicals and Performance Products, with about 50% of total sales
contributed by Basic Chemicals at present. The company expects earnings in Fine
and specialty chemical (FSC) segment to stem from high margin pharma and
personal care intermediaries. The company aims to change its sales strategy as well
as reduce certain fixed costs, mainly at its U.S.based marketing subsidiary and also in
other geographies, so as to improve the profitability levels of this segment. DNL’s
large scale Greenfield project at Dahej for manufacturing of 200,000 MTPA phenol
and 120,000 MTP acetone is proceeding as per schedule with 55% of the
construction work completed and planned COD (Commercial Operation Date)
in January 2018. In March 2017, DNL raised additional `150cr through its
second Qualified Institutional Placement (QIP) issue to meet part of the equity
requirements for the project, though timely tie up of the balance equity funding
remains important. The project economics remains favourable given the
widespread applications of the products and their healthy demand within the
country along with limited domestic manufacturing capacities for the same.
It’s debt to equity ratio has improved from 0.69x in FY15 to 0.33x in FY17. The
company has a ROE of 9.17% FY17 TTM earnings and it is currently maintaining an
average dividend payout of 17.38%. Hence BUY.
CMP `223
Reuters Code
BSE Sensex
Face Value (`)
Commodity Chemcials
Market Cap (` cr)
52 Week High / Low
Avg. Daily Volume
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Deepak Nitrite Ltd
Others | Commodity Chemical
Nov 23, 2017
Deepak Nitrite Ltd |Commodity Chemicals
Oct 13, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
Angel Broking Private Limited (hereinafter referred to as Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager and investment advisor with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking
Private Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide
registration number INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory
authority for accessing /dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or
co-managed public offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Disclosure of Interest Statement Deepak Nitrite
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)