HomeNewsBusinessStocksReduce Deepak Nitrite; target of Rs 1985: Prabhudas Lilladher

Reduce Deepak Nitrite; target of Rs 1985: Prabhudas Lilladher

Prabhudas Lilladher recommended reduce rating on Deepak Nitrite with a target price of Rs 1985 in its research report dated February 15, 2024.

February 19, 2024 / 16:55 IST
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Reduce
Reduce

Prabhudas Lilladher's research report on Deepak Nitrite

Deepak Nitrite (DN) topline grew 13% QoQ anchored by solid growth in the Phenolics segment, driven by robust volume growth and improved realization. Advanced Intermediates segment experienced subdued demand recovery in agrochemicals, textiles and dyes & pigments segment. The company has announced plans for large scale capex including brownfield and greenfield expansion and expects to commence all the projects before 2027.

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Outlook

The stock is currently trading at 30x FY26E EPS and 19x FY26E EV/EBITDA. We anticipate ~7% EPS CAGR over FY23-26E. We value the stock at 26x P/E at FY26 EPS and retain ‘Reduce’ rating with TP of Rs1,985(earlier Rs1,935).