Buy Deepak Nitrite, target price Rs 2535: JM Financial

JM Financial has buy call on Deepak Nitrite with a target price of Rs 2535. The current market price of Deepak Nitrite is Rs 2279.9.

Deepak Nitrite, incorporated in the year 1970, is a Mid Cap company (having a market cap of Rs 31189.00 Crore) operating in Chemicals sector.

Deepak Nitrite key Products/Revenue Segments include Fine Chemicals, Export Incentives, Sale of services, Scrap and Other Operating Revenue for the year ending 31-Mar-2023.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 1800.21 Crore, down -8.80 % from last quarter Total Income of Rs 1973.93 Crore and down -12.93 % from last year same quarter Total Income of Rs 2067.60 Crore. Company has reported net profit after tax of Rs 149.90 Crore in latest quarter.

Investment Rationale
Owing to better demand outlook and a possible ~30% EPS CAGR over FY24E-26E (19% over FY23-26E), the brokerage raises its target multiple to 26x Sep’25E EPS (from 25x Sep’25E EPS).

Promoter/FII Holdings
Promoters held 49.13 per cent stake in the company as of 30-Jun-2023, while FIIs owned 8.09 per cent, DIIs 15.33 per cent.