Deepak Nitrite Limited (DEEPAKNTR) AI Stock Analysis

• Market Cap: ₹253.07B
• Dividend Yield: 0.4%
• Average Volume (3M): 9.48K
• Price to Earnings (P/E): 41.7
• Beta (1Y): 1.15
• Revenue Growth: -23.95%
• EPS Growth: -29.72%
• Country: IN
• Employees: 1,720
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals
• EPS (TTM): 7.65
• Shares Outstanding: 136,393,040
• 10 Day Avg. Volume: 9,438
• 30 Day Avg. Volume: 9,480
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,031.75
• Price Target Upside: 9.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 60 Neutral
• Price Target: ₹2,063.00 ▲(11.19% Upside)

Deepak Nitrite Limited's stock score is primarily driven by its strong financial stability and consistent revenue growth, despite recent profitability challenges. The technical analysis presents a mixed outlook with potential overbought signals, while the valuation suggests overvaluation concerns. These factors combined result in a moderate stock score.

Deepak Nitrite Limited Business Overview & Revenue Model

Company Description

Deepak Nitrite Limited is a leading Indian chemical manufacturing company that operates in multiple sectors, including Basic Chemicals, Fine & Specialty Chemicals, and Performance Products. The company is known for its diverse portfolio of chemical products, which are used across various industries such as pharmaceuticals, agrochemicals, rubber, paper, textiles, and detergents. With a strong commitment to sustainability and innovation, Deepak Nitrite Limited has established itself as a key player in the global chemical industry.

How the Company Makes Money

Deepak Nitrite Limited generates revenue through the production and sale of a wide range of chemical products. Its key revenue streams are divided into three main segments: Basic Chemicals, Fine & Specialty Chemicals, and Performance Products. The Basic Chemicals segment includes bulk chemicals such as sodium nitrate and nitrite, which are sold to various industries. The Fine & Specialty Chemicals segment focuses on high-value chemicals used in pharmaceuticals and agrochemicals, which typically have higher margins. The Performance Products segment includes optical brightening agents used in textiles and detergents. The company also benefits from strategic partnerships and long-term contracts with major industrial players, which ensure a steady demand for its products. Additionally, Deepak Nitrite's focus on research and development enables it to introduce innovative products and solutions, further driving its profitability.

Deepak Nitrite Limited Financial Statement Overview

Summary

Deepak Nitrite Limited demonstrates strong financial health with consistent revenue growth and effective cost management. The low debt profile adds to financial stability. However, recent declines in profitability margins and free cash flow require attention.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase from 2024 to 2025. However, there is a decline in gross profit and net income margins in the latest year, indicating potential pressure on profitability. The EBIT and EBITDA margins remain robust, reflecting operational efficiency despite revenue fluctuations.

Balance Sheet

Deepak Nitrite Limited's balance sheet shows strong equity growth, leading to a favorable equity ratio. The debt-to-equity ratio remains low, suggesting financial stability and low leverage risk. However, the decreasing gross profit margin could affect future equity returns.

Cash Flow

The company experienced a decline in free cash flow in 2025, driven by significant capital expenditures. The operating cash flow to net income ratio indicates solid cash generation from operations, but the negative free cash flow could pose concerns if it persists.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	81.21B	76.82B	79.72B	67.73B	43.33B
Gross Profit	12.82B	19.09B	20.83B	22.07B	17.91B
EBITDA	11.76B	12.82B	13.39B	16.49B	12.72B
Net Income	6.97B	8.11B	8.52B	10.67B	7.76B
Balance Sheet
Total Assets	77.18B	60.96B	51.29B	44.30B	35.60B
Cash, Cash Equivalents and Short-Term Investments	9.14B	5.83B	4.56B	4.79B	2.21B
Total Debt	12.67B	2.86B	728.60M	3.15B	5.90B
Total Liabilities	22.93B	12.74B	10.39B	10.92B	12.14B
Stockholders Equity	53.89B	47.97B	40.90B	33.38B	23.47B
Cash Flow
Free Cash Flow	-4.83B	1.06B	2.89B	6.37B	7.89B
Operating Cash Flow	6.39B	8.78B	6.50B	8.24B	9.99B
Investing Cash Flow	-15.25B	-7.22B	-2.76B	-4.24B	-3.96B
Financing Cash Flow	8.26B	435.30M	-3.59B	-3.86B	-5.96B

Deepak Nitrite Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1855.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DEEPAKNTR, the sentiment is Negative. The current price of 1855.45 is below the 20-day moving average (MA) of 1863.71, below the 50-day MA of 1910.09, and below the 200-day MA of 2166.22, indicating a bearish trend. The MACD of -23.66 indicates Negative momentum. The RSI at 45.09 is Neutral, neither overbought nor oversold. The STOCH value of 83.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DEEPAKNTR.

Deepak Nitrite Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEEPAKFERT	77 Outperform	₹182.77B	18.63		0.59%	23.22%	85.82%
NAVINFLUOR	72 Outperform	₹255.48B	69.80		0.24%	21.52%	36.24%
Sector *	70 Outperform	¥179.17B	11.23	5.69%	3.09%	2.75%	-12.76%
TATACHEM	63 Neutral	₹240.77B	71.45		1.18%	-1.17%	―
GNFC	61 Neutral	₹73.71B	13.12		3.26%	-9.97%	9.63%
DEEPAKNTR	60 Neutral	₹253.07B	41.70		0.40%	-23.95%	-29.72%
FLUOROCHEM	57 Neutral	₹372.15B	59.83		0.09%	13.99%	81.98%

Deepak Nitrite Limited Corporate Events

Deepak Nitrite Announces Board Restructuring with New Director Appointments

Deepak Nitrite Limited announced changes in its board of directors, with the resignation of Shri Prakash Samudra as an Independent Director effective April 9, 2025, due to personal reasons. The company has appointed Dr. Arvind Nath Agrawat, Ms. Bhumika Batra, and Shri Mahesh Ramchand Chhabria as new Independent Directors, effective June 28, 2025, replacing outgoing directors. Additionally, the company reappointed Shri Punit Latbhai and Shri Viput Shah for a second term as Independent Directors starting August 8, 2025. These changes are subject to member approval via postal ballot, reflecting the company’s commitment to maintaining robust governance and leadership.

Deepak Nitrite Subsidiary to Invest ₹3,500 Crores in New Manufacturing Complex

Deepak Nitrite Limited’s subsidiary, Deepak Chem Tech Limited, announced plans to establish a new manufacturing complex for phenol, acetone, and isopropyl alcohol with an investment of approximately ₹3,500 crores, funded through a mix of debt and equity. This strategic move aims to enhance backward integration for ongoing projects and reduce import dependency for acetone in India, potentially strengthening the company’s market position and operational capabilities.

Deepak Nitrite Limited Announces Changes in Board of Directors

Deepak Nitrite Limited announced a change in its board of directors, with the resignation of Shri Prakash Samudra as an Independent Director due to personal reasons. The company has appointed Dr. Arvind Nath Agrawat, Ms. Bhumika Batra, and Shri Mahesh Ramchand Chhabria as new Independent Directors, effective from June 28, 2025, replacing outgoing directors. Additionally, Shri Punit Latbhai and Shri Vipul Shah have been re-appointed for a second term. These changes reflect the company’s strategic efforts to refresh its leadership and continue its growth trajectory.