- by Anapeksha Mukherjee
- 26th Aug 2020
This chemical stock gave 1,120% returns in five years. Did you miss the bus?
Incorporated in 1970 and one of the top 3 producers of Xylidines, Cumidines and Oximes, Deepak Nitrite has seen an all time high of 1120% increase in share prices in the last five years. The last traded price of the stock was Rs. 744, and it has risen by 35% since then. An all time high of Rs. 824 in 52 weeks, Deepak Nitrite’s market capitalisation is now estimated to be around Rs. 10,149 crores. The recent rally recommending imposing provisional anti-dumping duty on phenol imports from Thailand and the United States came after the Directorate General of Trade Remedies (DGTR), on August 20.
The chemical manufacturing company has increased their spectrum by including dyes and pigments, agrochemical, pharmaceutical, fuel additives, rubber, paper, detergents and personal care.
Almost 35% of the company’s revenues are generated from exports. It had a revenue of almost rs. 4,265 crore when it completed 50 years in business on 2019-20.
Studying the share price movement analysts believe that the company’s new subsidiary Deepak Phenolics drive their growth. Deepak Phenolics had started its commercial production on 1st November, 2018 as a mega-plant of phenol and acetone.
Deepak Phenolics contributed almost Rs. 927 crore to the consolidated turnover of Rs. 2,715 crore in the fiscal year 2019.
This mega project along with the Government of India with the Make in India initiative has a capacity to gross 2,00,000 MTPA of Phenol and 120,000 MTPA of its co-product Acetone.
For the second quarter of fiscal year 2021, the mid cap stock, Deepak Nitrite didn’t see much of a rise in finance due to COVID-19 lockdowns. The standalone revenues saw a decline of 36% year-on-year to ₹355 crore. The net profit dipped 40.7% year-on-year to ₹63.61 crore.