10/05/2021
*JHAVERI LONGTERM FUNDAMENTAL BUY STOCK IDEA:*
*SCRIP NAME: DEEPAK NITRITE*
*BSE/NSE CODE: 506401/DEEPAKNTR*
*CMP:1803*
*BASIC INFO:*
*MARKET CAP: 24592 CRORE*
*ROCE: 40.1*
*ROE: 39.6*
*ABOUT THE COMPANY*
Deepak Nitrite has 4 major segments :
1. Basic Chemicals: Nitrites, Nitro Toluidines & Fuel Additives
2. Fine & Specialty Chemicals: Xylidines, Oximes, Cumidines and speciality agro-chemicals
3. Performance Products: brightening agents used in papers and detergents
4. Phenolics: Phenol, acetone etc
*KEY POINTS*
80% market share in Sodium Nitrate
60% global market share in DASDA
75% market share in optical brightening agent
The company has declared positive results for the last 3 consecutive quarters
ROCE(HY) Highest at 38.67 %
DEBT-EQUITY RATIO(HY) Lowest at 0.23 times
OPERATING PROFIT TO INTEREST(Q) Highest at 32.02 times
EXCELLENT FINANCIALS AS COMPARED TO PEERS ACROSS CHEMICAL SECTOR
*TECHNICAL OUTLOOK:*
*Stock is technically in a Bullish range*
The technical trend has improved from Mildly Bullish on 09-Dec-20 and has generated 109.71% returns since then
Multiple factors for the stock are Bullish like MACD, KST, DOW and OBV
*CONCLUSION:*
*WITH THE BANNING OF CHEMICAL PRODUCTION DUE TO ENVIRONMENTAL CONCERNS IN CHINA, INDIA BECOMES A SWEET SPOT FOR THE WORLD, ESPECIALLY CHEMICAL INDUSTRIES. DEEPAK NITRITE FOR THIS SECTOR, LOOKS THE MOST PROMISING AS PER THE FUNDAMENTALS OF THE COMPANY, WE HIGHLY RECOMMEND THAT EVERY PERSON SHOULD HOLD THE STOCK IN THEIR PORTFOLIO*
*THIS STOCK IS A BUY FOR EVERY DIP AND CAN BECOME A DARK HORSE FOR THE UPCOMING BULLRUN*
*THANKS AND REGARDS*
*JHAVERI SECURITIES LTD.*
Financial service
