Deepak Nitrite bucks trend, hits record high level

Deepak Nitrite rise 2.12% to Rs 1425.20, extending its winning run to fourth consecutive trading session.

Shares of Deepak Nitrite have rallied 12.77% in four sessions from their previous closing low of Rs 1263.80 on 22 February 2021. The counter hit a record high of Rs 1,444.50 in early trade today. The stock has surged 359% from its 52-week low of Rs 310 hit on 19 March 2020.

In last one month, Deepak Nitrite has gained 44.4% compared with 9% rise in S&P BSE Mid Cap index.

Meanwhile, the S&P BSE Sensex was down 740.32 points or 1.45% at 50,298.99 on weak global cues.

Deepak Nitrite reported strong Q3 earnings on 12 February 2021. It reported a 38.2% rise in consolidated net profit to Rs 216.56 crore on 10.3% rise in revenue from operations to Rs 1234.69 crore in Q3 FY21 over Q3 FY20. Improvement in revenues was led by robust Y-o-Y improvement in the phenolics business aided by incremental contribution from Isopropyl Alcohol (IPA) products. Profit before tax grew by 37.7% to Rs 290.3 crore in Q3 FY21 over Q3 FY20. Current tax expense spiked 25.5% to Rs 63.64 crore in Q3 FY21 over Q3 FY20. EBITDA stood at Rs 340 crore in Q3 FY21, up 25% over Q3 FY20. EBITDA margin grew by 330 basis points to 27.4% in Q3 FY21 over Q3 FY20.

On the technical front, the stock's RSI (relative strength index) stood at 80.985. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading above its 50 and 100 days simple moving average placed at 1057.44 and 922.94 respectively. These levels will act as crucial support zones in near term.

Deepak Nitrite is one of the leading supplier of chemical intermediates. It has a diversified portfolio of intermediates that cater to the dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and home and personal care segments in India and abroad.

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