Motilal Oswal's research report on Deepak Nitrite
Deepak Nitrite (DN) reported a weak operating performance, with EBITDA declining 31% YoY to INR2b in 2QFY26. Gross margin contracted 440bp YoY to 27.6% and EBITDA margin contracted 390bp, driven by macro headwinds, pricing trends, and tariff developments. Amid a volatile geopolitical environment and shifting global trade dynamics, we expect a recovery in 2H, led by the ramp-up of new capacities, improved volumes from market seeding of new products and SKUs, and the company’s strategic initiatives to pivot into non-traditional geographies and debottleneck certain capacities.
Outlook
We broadly retain our estimates for FY26/FY27/FY28 and estimate a CAGR of 6%/12%/8% in revenue/EBITDA/PAT over FY25-28E. We value the stock at 25x FY27E EPS to arrive at our TP of INR1,530. Reiterate Sell.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
