Deepak Nitrite Q3 Results Review - Subdued Performance In AI Segment Leads To Miss: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Deepak Nitrite Ltd. delivered a miss in Q3 FY24, led by a weaker than expected performance in advance intermediate. The quarter saw persistent pricing pressure by Chinese suppliers in chemical intermediates. Ebitda at Rs 3 billion missed our estimate by 15%, while profit after tax stood at Rs 2 billion versus our estimate of Rs 2.5 billion. Margin also declined YoY due to the AI segment. The management highlighted that global consumption trends have been hit as the chemical industry continued to face headwinds in Q3. The AI segment’s weak performance was mainly attributed to the lack of demand in the agrochem, textiles, and dyes and pigments sectors; however, demand was healthy from the construction, infrastructure and home care segments..Due to the underperformance in Q3 FY24, we have cut our Ebitda/earnings per share estimates by 6%/9% for FY24 while keeping our FY25/FY26 estimates broadly unchanged. The stock trades at ~30x FY25E EPS of Rs 77 and at ~20 times FY25E enterprise value/Ebitda. We reiterate our Neutral rating, valuing the stock at 25 times Dec-25E EPS to arrive at our target price of Rs 2,185..Click on the attachment to read the full report:.Deepak Nitrite Q3 Results: Profit Declines 3%, Misses Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Deepak Nitrite Q3 Results Review - Subdued Performance In AI Segment Leads To Miss: Motilal Oswal

The AI segment’s weak performance was mainly attributed to the lack of demand in the agrochem, textiles, and dyes & pigments sectors

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Deepak Nitrite Q3 Results Review - Subdued Performance In AI Segment Leads To Miss: Motilal Oswal

The AI segment’s weak performance was mainly attributed to the lack of demand in the agrochem, textiles, and dyes & pigments sectors

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