Hold Deepak Nitrite; target of Rs 1673: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Deepak Nitrite with a target price of Rs 1673 in its research report dated February 14, 2026.

Broker Research

February 16, 2026 / 11:21 IST

hold

Prabhudas Lilladher's research report on Deepak Nitrite

DN’s Q3FY26 revenue stood at Rs19.8bn, registering growth of 3.8% YoY and QoQ. The Advanced Intermediates segment reported sales growth of 18% YoY and 11% QoQ led by higher volumes; however, margins were impacted by the continued influx of Chinese imports, resulting in pricing pressure across the portfolio. The Phenols segment witnessed volume growth, but profitability remained subdued compared to historical peak margins due to weaker spreads. Projects such as MIBK/MIBC are expected to be commissioned in Q4FY26, while nitric acid plant commissioned in Dec’25. Dismantling of the polycarbonate plant in Germany is underway; the project timeline has been guided to be Dec’27, but we believe it could be delayed. DN continues to undertake growth initiatives, primarily focused on the Phenolics segment. While domestic demand for phenol is expected to remain strong, the threat of low-priced imports is likely to keep margins under pressure.

Outlook

The stock is currently trading at ~28x FY28 EPS. We value the stock at 30x Dec’27E EPS and maintain ‘HOLD’ rating with TP of Rs1,673.

For all recommendations report, click here