Chemical stock in focus after promoter increased their stake in the company

This Chemical stock which deals in the business of manufacturing Basic Intermediates, Fine and Speciality Chemicals, Phenolics, and Performance Products, is in focus after the company’s promoter group increased its stake worth Rs. 5.82 crore.

Share Price Movement

In Wednesday’s trading session, Deepak Nitrite (NSE:DPNT)‘s share price was up by 2 percent to the day’s high of Rs. 1,474.55. The stock reiterated from the day’s high and was trading at Rs. 1,460.15 which is 8.93 percent higher than the previous close of Rs. 1,340.50 per share.

In the past year, the stock has delivered a negative return of 3 percent and has underperformed the Nifty Index. la

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What Happened

The company’s stock was in focus after Promoter Group Ila Deepak Mehta bought 30,700 equity shares with an average share price of Rs. 1,898.8 worth Rs. 5.8 crore and traded 0.02 percent of the outstanding shares. The acquisition of shares was done through the open market dated 17th February 2025 and the post-transaction holding stands at 5,72,710 equity shares constituting around 0.42 percent stake in Deepak Nitrite Limited.

As per the December 2024 shareholders filing, Ila Deepak Mehta under the Promoter Group holds 5,42,010 equity shares constituing 0.40 percent stake.

Financials

In its latest filing for the quarter ending December 2024, the company reported a 5.27 percent fall in revenue, reaching Rs.1,903 crore compared to Rs.2,009 crore in Q3FY24. During the same period, net profit saw a decline of 51.48 percent to Rs.98 crore in Q3FY25, compared to Rs.202 crore in Q3FY24.

Business Segments

The company earned its revenue from operations from Phenolics which contributes around 71.22 percent and the remaining 28.77 percent from Advanced Intermediates as of December 2024 quarter. In operating profit (EBIT), the margins of Phenolics declined to 9 percent from 13 percent and Advanced Intermediates’ margin fell to 3 percent from 14 percent on a year-on-year basis.

Capex Plans

Deepak Nitrite expects to commission a Nitric Acid project towards the end of the current quarter. MIBK or MIBC projects are all engineered and procurement is completed with commission is expected to be in H1FY26. The Acetophenone project is expected to be commissioned by H1FY26.

Deepak C Mehta, the chairman and MD of Deepak Nitrite said “India continues to import almost 300kta of polycarbonate resin. Deepak will be producing about 160kta in the first phase. All our projects are targeted to be completed by the end of FY2028.”

Outlook

On a broader Industry level, there are signs of improved demand from International Customers, while customers in domestic markets are expected to follow, leading fourth quarter being normalized. With several projects set to be commissioned in the near future, the company anticipates being better positioned to acquire value from new parts of the value chain both upstream and downstream as per the December 2024 quarter company’s investor presentation.

Company Profile

Deepak Nitrite Limited is an Indian chemical manufacturing company, specializing in advanced intermediates and phenolics, serving diverse industries with a wide range of chemical products globally.

Written by – Santhosh S

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