Buy Deepak Nitrite, target price Rs 2300: Motilal Oswal

Motilal Oswal has buy call on Deepak Nitrite with a target price of Rs 2300. The current market price of Deepak Nitrite Ltd. is Rs 1837.75.

Time period given by analyst is one year when Deepak Nitrite Ltd. price can reach defined target.
Deepak Nitrite Ltd., incorporated in the year 1970, is a Mid Cap company (having a market cap of Rs 25123.60 Crore) operating in Chemicals sector.


Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1469.17 Crore, up 18.52 % from last quarter Total Income of Rs 1239.57 Crore and up 38.90 % from last year same quarter Total Income of Rs 1057.74 Crore. Company reported net profit after tax of Rs 290.11 Crore in latest quarter.

Investment Rationale
The stock is trading at 21x FY23E EPS of INR82 and 14x FY23E EV/EBITDA, with return ratios of 29–31%. The brokerage expects a 19% PAT CAGR over FY21–24E. It values the company at 28x FY23E EPS to arrive at TP of INR2,300. It initiates coverage on DN with a Buy rating.