9 months ago
Deepak Nitrite Stock Struggles Amidst Near-Term Challenges
Deepak Nitrite's stock has been going down this year because both its main businesses are having problems at the same time.
This has made people who invest in the company sad and they think the problems might continue for a while.
Some people think the company might do better in the future, but others think it's better to look for other companies to invest in right now.
Deepak Nitrite stock has dropped nearly 30% in 2025, underperforming the Nifty Chemicals index
Brokerages remain cautious about its near-term outlook, with earnings forecasts cut
Key businesses—phenolics and advanced intermediates—have been under pressure, impacting margins and earnings
Oversupply in phenolics and delayed offtake in intermediates contribute to weak sentiment
Analysts expect challenges to linger until at least mid-2026, with some seeing opportunities in the long term
- Who
- Deepak Nitrite, a company in the Nifty Chemicals index
- What
- Has experienced a significant drop in stock price and earnings due to challenges in its key businesses
- Where
- On the stock market, affecting investors and the company's operations
- When
- In 2025, with near-term challenges expected to continue
- Why
- Due to oversupply in phenolics, delayed offtake in intermediates, and new project execution risks
Bearish View
Bullish View
Near-term Outlook
Bearish View
Challenges expected to continue until mid-2026
Bullish View
Potential for long-term growth and recovery
Key facts
- Stock Performance (2025)
- Down nearly 30%
- Nifty Chemicals Index Performance
- Navin Fluorine International led with an 85% rise
- Key Businesses Under Pressure
- Phenolics and Advanced Intermediates
- Expected Recovery
- Some analysts see opportunities in the long term, but challenges may linger until mid-2026
Quotes
Shrikant Chouhan, head of equity research, Kotak Securities
An equity research analyst
“The near-term challenge is simply the cycle.”
livemint.com
“The business should do better once phenol spreads normalise and new projects start contributing, but this is still a few quarters away.”
livemint.com
Gagan Dixit, research analyst at Elara Capital
A research analyst
“The company’s phase of underperformance is likely to linger until the first half of 2026.”
livemint.com
“Near-term earnings performance would be hit by phenolics/acetone oversupply by China and weak demand.”
livemint.com
Sunny Agrawal, head–fundamental research at SBI Securities
A fundamental research analyst
“To offset the US tariffs and maintain its market share, the company has shifted volumes to the domestic market and other export geographies which impacts realisations and margins.”
livemint.com
“For the stock to break out of this slump, a few triggers are essential: a cyclical revival in phenol and acetone prices and fresh capex going on stream to meaningfully scale up revenues.”
livemint.com
Nuvama Institutional Equities
A brokerage firm
“The company reported an in-line performance, but commentary on the near-term outlook was rather cautious. Hence, this triggered a sharp downward revision in our FY26E EPS by 32.7%.”
livemint.com
Sources
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