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.
Centrum Broking Report
Deepak Nitrite Ltd. reported flattish sequential operating performance backed by volume growth in phenolics while advanced intermediates margins remained subdued due to mixed user segments demand.
Deepak Nitrite's revenues surged 13% QoQ at Rs 20.1 billion in Q3, Ebitda grew marginally by 0.8% at Rs 3.0 billion, and profit after tax declined 1.5% at Rs 2.0 billion. Quarterly Phenol production stood highest ever at 88,378 million tonne implying annualised Phenolics plant capacity at ~350,000 mt.
Although Advanced Intermediates volumes jumped YoY, realisations remained under pressure due to muted demand recovery from agrochemicals, textiles, dyes and pigments.
Deepak Nitrite signed Rs 90 billion MOU with Gujarat government for three new products taking aggregate investment to Rs 140 billion and project completions by 2027.
With a net debt free status and healthy cash flows, Deepak is well placed to go ahead with its huge investment plan. Based on nine months performance, we have maintained our FY24E Ebitda estimates while lowering our Ebitda estimates for FY25E/FY26E by 7.4%/0.6%.
We maintain Add rating with a revised SOTP-based target price of Rs 2,347 (earlier Rs 2,282).
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
