Deepak Nitrite Ltd is a chemicals manufacturing company in India. If you are planning to invest in Deepak Nitrite Ltd (DEEPAKNTR) share, then this article can provide you insights about the company’s performance and future share price targets. In this analysis, we will delve into Deepak Nitrite’s future share price target from 2023 to 2050 based on historical price patterns and financial performance. Plus, we will also discuss company’s historical performance, financial insights and whether the stock is buy, sell or hold?
About Deepak Nitrite Ltd (DEEPAKNTR)
Deepak Nitrite Limited (NSE: DEEPAKNTR) is a prominent chemicals manufacturing company in India with a diversified portfolio that includes basic chemicals, phenolics, and fine & specialty chemicals.
The company was founded in 1970 by the late Shri Deepak C. Mehta and has its headquarters in Vadodara, Gujarat. It has a wide footprint across various regions, including India, China, Europe, the Middle East, and the US.
Deepak Nitrite produces over 200 products that cater to a range of industries such as fertilizers, dyestuffs, pharmaceuticals, pesticides, rubber chemicals, detergents, paper, textiles, and paints, among others.
Some of its principal business segments and products are:
- Basic Chemicals: Sodium Nitrite, Sodium Nitrate, Nitro Toluenes
- Phenolics: Isopropyl Alcohol (IPA), Cumene, Acetone, Phenol
- Fine & Specialty Chemicals: Xylidines, Oximes, Nitro Aromatic Chemicals
The company operates six manufacturing facilities situated in Gujarat, Maharashtra, Telangana, and Hyderabad. In FY22, it registered a total revenue of ₹6,611 crores and a profit after tax of ₹603 crores.
Deepak Nitrite stands as the world’s largest producer of Sodium Nitrite and ranks among the top producers of Cumene and Nitro Toluenes. Its strong market position and brand reputation stem from its high-quality products, enduring customer relationships, and efficient supply chain infrastructure.
Deepak Nitrite (DEEPAKNTR) Historical Performance
Deepak Nitrite has experienced significant growth and value creation for its shareholders over the past decade. If you look at the company’s stock price, it has multiplied during this time, which is basically due to the company’s robust financial health and expansion strategies.
In 2010, Deepak Nitrite’s share price hovered around ₹60. Over the next few years, the company expanded capacities in some of its basic chemicals which drove steady stock price appreciation to ₹100 levels by 2014.
The period between 2015 and 2018 saw the stock price enter a strong bull run. In 2016, Deepak Nitrite expanded Phenol and Acetone capacities by setting up a new 200 KTA plant, leading the stock to double from ₹100 to ₹200. Then, In 2018, the company launched Isopropyl Alcohol (IPA) operations and the stock hit new highs of ₹600 by January 2018, which was a 6 times rise in just 3 years. However, in 2018, the stock corrected nearly 60% to around ₹250 due to raw material inflation, rising oil prices, and sectoral headwinds. Also, the start of their Taloja Greenfield project in 2017 got delayed.
The outbreak of Covid-19 in early 2020 led to another temporary downturn with the stock falling from ₹400 to ₹200 by March 2020. But, with strong growth in fine & specialty chemicals segment and resilient performance across its diversified chemical portfolio, the stock entered a dream run surging 5X in just 18 months. The stock surpassed ₹1000 in September 2021 and hit an all-time high of ₹2440 in December 2021.
Even in 2022, the company’s stock fluctuated between ₹1800 and ₹2300. Currently, the stock is trading around ₹1990.
Deepak Nitrite Price History
Here’s the price history of Deepak Nitrite Ltd, showing the stock performance of the company over the last 10 years.
| Date | Open | High | Low | Close | Adj Close | Volume |
|---|---|---|---|---|---|---|
| Oct 1, 2023 | 2,120.45 | 2,167.85 | 1,921.85 | 1,950.00 | 1,950.00 | 4,869,681 |
| Oct 1, 2022 | 2,036.00 | 2,326.40 | 2,031.15 | 2,313.95 | 2,305.30 | 10,918,296 |
| Oct 1, 2021 | 2,399.00 | 3,020.00 | 2,183.65 | 2,230.35 | 2,213.45 | 42,073,562 |
| Oct 1, 2020 | 829.00 | 833.90 | 702.10 | 742.25 | 736.25 | 18,475,633 |
| Oct 1, 2019 | 299.85 | 360.00 | 286.05 | 341.20 | 335.19 | 6,304,652 |
| Oct 1, 2018 | 289.00 | 289.20 | 212.50 | 248.50 | 242.36 | 6,600,705 |
| Oct 1, 2017 | 194.05 | 233.70 | 192.50 | 217.15 | 210.60 | 8,373,262 |
| Oct 1, 2016 | 121.00 | 131.90 | 108.00 | 111.50 | 107.28 | 2,490,135 |
| Oct 1, 2015 | 63.25 | 69.80 | 60.20 | 65.10 | 61.87 | 1,040,496 |
| Oct 1, 2014 | 78.50 | 80.00 | 67.65 | 73.55 | 68.91 | 1,224,000 |
| Oct 1, 2013 | 26.60 | 30.39 | 25.95 | 30.00 | 27.77 | 394,670 |
Deepak Nitrite Price Chart Analysis
The 10-year price chart below illustrates Deepak Nitrite’s strong bullish momentum, with exceptions during the corrections in 2018 and the pandemic crash of 2020.
Deepak Nitrite (DEEPAKNTR) Financial Insights
Over the last 5 years, Deepak Nitrite has shown stellar financial growth. In FY2018, Deepak Nitrite posted total revenues of ₹2,363 crores. Since then, these revenues have grown at an impressive CAGR of 30%, reaching ₹6,611 crores in FY2022. This remarkable growth primarily stems from a significant rise in exports and contributions from the specialty chemicals segment. Specifically, export revenues surged from ₹693 crores in FY18 to ₹2,276 crores in FY22.
In a similar vein, revenue from specialty chemicals expanded at a 40% CAGR over the last 5 years, climbing from ₹374 crores in FY18 to ₹1,512 crores in FY22. Now, specialty chemicals constitute 23% of the company’s total revenues.
Furthermore, Deepak Nitrite reported a net profit of ₹246 crores in FY18, and this figure has since multiplied by 3.5 times, reaching ₹876 crores in FY22. This increase shows the company’s robust operating leverage and margin expansion, which resulted from higher capacity utilization. Consequently, the EPS leaped from ₹18.9 in FY18 to ₹66.7 in FY22.
EBITDA also saw a fivefold rise, moving from ₹412 crores in FY18 to ₹2,065 crores in FY22. During this period, EBITDA margins notably improved, transitioning from 17.4% to 31.2%.
Aligned with the growth in profit, Deepak Nitrite’s market capitalization also expanded, moving from ₹8,400 crores in 2018 to approximately ₹32,000 crores at present, highlighting significant value creation for its shareholders.
Deepak Nitrite (DEEPAKNTR) Share Price Target
Based on historical share price performance and projected industry growth, here are the estimated minimum and maximum price targets for Deepak Nitrite for the coming years.
| Year | Minimum Price Target | Maximum Price Target |
|---|---|---|
| 2023 | 2,800.12 | 3,000.54 |
| 2024 | 3,220.15 | 3,470.62 |
| 2025 | 3,703.17 | 4,021.71 |
| 2026 | 4,258.65 | 4,625.07 |
| 2027 | 4,897.47 | 5,319.33 |
| 2028 | 5,239.79 | 5,691.78 |
| 2029 | 5,606.58 | 6,090.70 |
| 2030 | 5,998.04 | 6,517.05 |
| 2040 | 7,897.56 | 8,579.14 |
| 2050 | 8,616.34 | 9,358.72 |
Deepak Nitrite (DEEPAKNTR) Share Price Target 2023
In 2023, Deepak Nitrite’s share price can reach around ₹2,800 – ₹3,000. The predicted price target represents a 44% increase from 2023 stock price, which is basically due to capacity expansions, new product launches, and strong export demand.
Deepak Nitrite (DEEPAKNTR) Share Price Target 2024
Heading into 2024, the share price is anticipated to lie between ₹3,220.15 and ₹3,470.62. This growth can be attributed to the company’s innovative product line, increased market penetration, and favorable industry dynamics.
Deepak Nitrite (DEEPAKNTR) Share Price Target 2025
Looking into 2025, Deepak Nitrite could rise to share price of ₹3,700 – ₹4,000 by 2025. Here, Key growth drivers could be rising specialty chemicals contribution, phenol-acetone integration, and inorganic growth opportunities.
Deepak Nitrite (DEEPAKNTR) Share Price Target 2030
By the end of the decade in 2030, the share price is anticipated to oscillate between ₹5,998.04 and ₹6,517.05, showcasing the company’s long-term vision and its ability to adapt to industry shifts.
Deepak Nitrite (DEEPAKNTR) Share Price Target 2030
By 2030, Deepak Nitrite’s share price is estimated to reach ₹5,900 – ₹6,500, which represents over 300% growth from 2023 stock price. This forecast shows the company’s resilience, its adaptability to market changes, and its commitment to delivering shareholder value.
Deepak Nitrite (DEEPAKNTR) Share Price Target 2040
Over the longer term 2030-2040 period, Deepak Nitrite can potentially deliver 15% CAGR returns to reach price levels of ₹7,900 – ₹8,600 by 2040.
Deepak Nitrite (DEEPAKNTR) Share Price Target 2050
The chemical industry is estimated to grow at 6-7% CAGR over the next few decades. Aligning with this long-term estimate, Deepak Nitrite share price could appreciate to ₹8,600 – ₹9,400 by 2050.
Also Read: Rail Vikas Nigam Ltd (RVNL) Share Price Target 2023, 2025, 2030, 2040, 2050
Deepak Nitrite Share: Buy, Sell or Hold?
Leading brokerage houses and market experts have expressed overwhelming positivity regarding Deepak Nitrite, given its growth prospects:
- Emkay Global has given a ‘Buy’ rating with a target of ₹2,200.
- Motilal Oswal values the stock at 22x FY24 PE, suggesting a target of ₹2,390.
- ICICI Direct projects a target of ₹2,525 based on 22x FY24E EPS.
- HDFC Securities has labeled it ‘Overweight’ with a target of ₹2,130.
Consensus estimates project a healthy 22-25% EPS CAGR over FY22-24E. Also, The stock seems to be on an upward trajectory if we look at the performance in the last 12 months.
Overall, Deepak Nitrite remains a promising long-term investment due to its competitive strengths. But, Investors might consider accumulating the DEEPAKNTR stock during dips, especially if they have a 5-10 year investment horizon.
Deepak Nitrite Share FAQs
What is Deepak Nitrite’s share split history?
Deepak Nitrite has undertaken one stock split – 1/01 split in 2014. After that, the company has not announced any stock splits.
What is Deepak Nitrite’s dividend history?
A: Deepak Nitrite has consistently paid dividends since 2001. The current dividend yield is around 0.38%. Dividend payouts have gradually increased from ₹10./share in FY10 to ₹7.5/share in FY23. Here’s a detailed dividend history from 2001 to 2023.
| Year | Dividend (Rs) | Dividend (%) |
|---|---|---|
| 2023 | 7.50 | 375% |
| 2022 | 7.00 | 350% |
| 2021 | 4.50 | 225% |
| 2021 | 1.00 | 50% |
| 2020 | 4.50 | 225% |
| 2019 | 2.00 | 100% |
| 2018 | 1.30 | 65% |
| 2017 | 1.20 | 60% |
| 2016 | 1.20 | 60% |
| 2015 | 1.00 | 50% |
| 2014 | 1.00 | 50% |
| 2013 | 8.00 | 80% |
| 2012 | 6.00 | 60% |
| 2011 | 6.00 | 60% |
| 2010 | 5.00 | 50% |
| 2009 | 5.00 | 50% |
| 2008 | 4.00 | 40% |
| 2007 | 4.00 | 40% |
| 2006 | 4.00 | 40% |
| 2005 | 4.00 | 40% |
| 2004 | 3.00 | 30% |
| 2003 | 3.00 | 30% |
| 2002 | 3.00 | 30% |
| 2001 | 0.00 | 25% |
Here, the year 2021 has two entries because there were two different dividends announced in that year.
What is the future outlook for Deepak Nitrite?
According to long-term forecasts, DEEPAKNTR stock price can reach in the range of 5,998.04 and 6,517.05, which is over 400% increase from 2023 value. Also, Revenue and profitability could grow at ~15%+ CAGR over the next 5 years.
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Disclaimer: The projections and price targets provided for DEEPAKNTR” are solely for informational and educational purposes and should not be treated as investment or financial advice. Always conduct your own research or consider consulting with a financial advisor before making any investment decisions.
