Deepak Nitrite Stock Research

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Deepak Nitrite Detail

Deepak Nitrite is in portfolio of Ashish Kacholia. He is one of the top investors in India. The company belongs to Chemicals sector.

As per the Company website it is one of the leading Inorganic chemical compound company in India. It creates chemical intermediates which serves different industries. It has five plants situated in three different states. The plants are located in Dahej, Taloja, Roha, Hyderabad and Nandesari.

Company generates major revenue share from domestic market compared to International market. The domestic revenue share is 65% and export market share is 35%.

Company products can be divided into three categories

  • Performance Products
  • Basic Chemicals
  • Fine and Specialty Chemicals

The products from this Company serves wide range of industries like Dyes and Pigments, Agro chemicals, Pharmaceuticals, Fuel Additives, Rubber, Paper, Detergents and Personal care. It has expertise in following processes Hydrogeneration, Nitration, Diazotization, Alkylation, Oxidation and Chlorination.

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It exports products to more than 30 countries across the globe.The customer list of the Company comprises of some marquee name like Reliance, Bayer Crop Sciences, UPL and Clariant. Mainstay products from the Company are

  • Fine and Specialty Chemicals
    • One of the largest and most integrated manufacturer of Toluene 2,5 Diamine Sulphate in India
  • Basic Chemicals
    • Fuel Additives (reduces ignition time and lowers combustion point)
    • Eco friendly Wood preservative
  • Performance Product
    • Magnetite and Sodium Sulphate

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Deepak Nitrite Stock Performance

The stock has given good returns from year 2014. It had awesome run and reached 300 mark from 30 mark in 2014 giving around 10 times return to investors in short span of time. There was a strong reason for that awesome run by the Stock which I will share later in the article.

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The stock also provides good dividend yield which is close to 1% at current market price. The only concern is that investors should also take a note about past price performance. Stock has not performed too well from 2002 to 2014. It did gave positive returns but it was slow and steady.

Deepak Nitrite My Opinion

Deepak Nitrite is a Chemicals Company. it creates chemical intermediates which find usage in wide range of Industrial applications. Remember I promised to share the reason it is having good run recently.

China is struggling with Pollution. In fact matter have become worse and it has decided to shut companies as well. Majority of these companies are in business of API formulation and Chemical creation. These industries are major contributor to Pollution in China specially Industrial regions.

One major argument is that to keep production cost less Chinese companies have not followed environment friendly guidelines. As a result they are struggling now. These shutdown have created a great opportunity for Indian Chemical companies and API formulation companies. This is the reason these Companies are seeing stock price appreciation.

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If you are planning to invest in the Company then you will have to keep close eye on China story and how well Company is using the opportunity to scale up without too much of debt. I have already invested in Chemical space and this China story stock. I will track this Company as well.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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