Deepak Nitrite Q1 Review – Focus On Advance, High-Value Products Intensifies: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Deepak Nitrite Ltd. reported a beat on our estimates, driven by better-than-expected margins in phenolics and margins expansion in basic chemicals.

Deepak Nitrite’s Ebit margin for the fine and specialty and performance products segments contracted.

Despite the huge beat on our estimate, we continue to highlight the risk of overall margin contraction from the normalisation of phenolics product prices.

As a result, we build in an Ebitda margin of 27% in FY22E (up from 26% earlier) and 26% for FY23/24E.

That said, strong domestic demand for phenolics, with higher exports to countries such as the U.S. and China, could keep product prices and margins strong in this segment – presenting an upside risk to our estimates.

Click on the attachment to read the full report:

Motilal Oswal Deepak Nitrite Q1FY22 Result Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Most Related Links :
dutifulnews Governmental News Finance News

Source link

Back to top button