Deepak Nitrite down 6% due to disappointing Q3 margins

Shares of Deepak Nitrite down nearly 6% during intra-day trade on Tuesday on the NSE. The stock price went south-wards since the early hours of Tuesday’s trade after it reports a reduced Q3 margin compared to estimates. 

However, it achieved a higher revenue of Rs 1,748 Cr., a 41% rise YoY. This is its highest ever quarterly revenue to report so far. This rise in revenue is mostly contributed by Phenolics. 

Its net profit up to Rs. Rs 242 Cr. from Rs. 217 Cr., a 12% rise YoY. Repayment of high-cost debt resulted into lowered finance cost which in turn helped to maintain a stable operating performance. 

The stock has been on a fairy-tale bull run on the indices for the past 22 months. However, it is a little bit cooled-off now as it trades 26% below from its 52-week high price of Rs. 3020. On Tuesday the scrip of Deepak Nitrite is trading at Rs. 2226.75 on NSE during intra-day trade.

Deepak Nitrite is a leading manufacturer of organic, inorganic, fine and specialty chemicals. It product range include dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and home and personal care segments, Petro-derivatives, and  intermediates like phenolics, acetone and Isopropyl Alcohol (IPA).