Deepak Nitrite hits new high in subdued market; stock zooms 97% in 6 months

Shares of Deepak Nitrite continued their upward journey, surging 6 for each cent to hit a new higher of Rs 537, on the BSE on Tuesday on expectation that the robust operate of earnings advancement will proceed inspite of the tailwinds.

In the earlier 6 months, the market place cost of the company has zoomed 97 for each cent, up from a amount of Rs 272 touched on September three. In comparison, the S&P BSE Sensex rose five for each cent throughout the interval.

Deepak Nitrite has a diversified portfolio of intermediates that caters to the dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and house and individual treatment segments in India and abroad.

For the October-December quarter (Q3FY20), the company posted a good general performance as the benefits for all the 3 segments in their foundation business enterprise remained robust, when the phenol-acetone manufacturing subsidiary Deepak Phenolics, clocked record quarterly turnover on the back again of higher utilization degrees.

Supported by robust volume advancement thanks to manufacturing efficiencies and recalibration of product mix, the company’s overall profits throughout the quarter under critique grew 36 for each cent calendar year on calendar year (YoY) at Rs 1,one hundred twenty crore. Consolidated net financial gain jumped more than 3-fold to Rs 157 crore from Rs forty eight crore in Q3FY19.

The management reported China, which enjoys a dominant posture in the market place, has been deemphasizing manufacturing of chemicals and higher-complexity goods. More, worldwide shoppers are also in search of to create operations in alternate markets other than China for which India is improved placed.

Uncertainties caused by the coronavirus are exacerbating the considerations about China. This is a tailwind for the speciality chemical business and Deepak Nitrite is well placed and endeavours to proceed to develop on its good results in modern yrs, it extra.

“The company is secure on the uncooked resources entrance, due to the fact it resources most of its uncooked resources regionally and has a well-built-in facility. It has also carried out positions to be certain that provide of imported uncooked resources are included for the present-day quarter producing no disturbance to operations as a result of the developments in China,” the management reported.

At eleven:39 am, Deepak Nitrite was trading three for each cent larger at Rs 521 on the BSE, as towards a .08 for each cent increase in the Sensex. A merged 1.47 million shares have modified hands on the counter on the NSE and BSE so far.

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