This favourite pick of Saurabh Mukherjee has returned its investor 3x returns in the last 24 months

This favourite pick of Saurabh Mukherjee has returned its investor 3x returns in the last 24 months

by 5paisa Research Team Last Updated: Dec 12, 2022 - 09:25 am 25.7k Views
Listen icon

Deepak Nitrate has both strong business and great financials.

Deepak Nitrate has been one of the best performing chemical stocks during the last 2 years with price appreciation from Rs 500 two years back to today's level of Rs 1778, delivering a 255% gain. The stock also went as high as Rs 3000 during the same period.

Deepak Nitrite is involved in the business of manufacturing organic, inorganic, fine, and speciality chemicals. It also manufactures a wide variety of intermediates which have applications in industrial explosives, paints, cosmetics, polymers, and optical brighteners. The company has manufacturing facilities in Gujarat, Maharashtra, and Telangana states.

The company has leadership in Phenol/Acetone which contributes more than 70% to the revenue. Vinati, Calim, Valiant, and Clean Science are the few clients for Phenol business. Process innovation and backward-forward integration have helped the company to be the cost leader in many of its products. Recently, in the first week of June, the company’s Vadodara plant caught fire. The company’s Inventory was damaged, while plant & machinery remain unaffected. However, any loss to the firm will be recovered under insurance.

The company has strong financials and was able to deliver 38% CAGR revenue growth and a staggering 82% CAGR growth in net profit for the last 3 years. As per the March period ending, the company has great ROE and ROCE of 44.6% and 37.5%, respectively. The company is also debt-free.

China plus one strategy adopted by major countries, import substitution and disruption in China's supply chain were the main triggers for Deepak Nitrite to succeed in the last few years. Saurabh Mukherjee, who is the founder of Marcellus Investment Fund and a popular guest on many business channels, is one of the early investors in the company and he has been talking about Deepak Nitrate for the last few years.

Deepak Nitrate has a market capitalization of Rs 24,000 crore and its shares are trading at Rs 1780 on June 21 2022.

Share Market Today


How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
Polymatech Electronics: ₹1,500 Crore IPO for Semiconductor Expansion

Polymatech Electronics, prominent semiconductor chip manufacturer based in Chennai, is gearing up for significant financial move with plans to launch₹1,500 cr initial public offering (IPO) by end of year. This IPO, double size initially envisaged, signifies company’s ambitious expansion strategy in semiconductor industry.

Vodafone Idea Sets Floor and Cap Prices for FPO Amid Market Speculation

In a major development, Vodafone Idea Ltd. has revealed the floor price and cap price, alongside the lot size, for its upcoming follow-on public offering (FPO). The telecom giant witnessed a decrease of more than 3.25% during early trading on Wednesday, settling at ₹12.51, thus holding a market capitalization exceeding ₹61,000 crore.

Bondada Engineering Share Price Surged by 1423.2%, Know Why?

Bondada Engineering, standout in integrated infrastructure sector, witnessed extraordinary surge in its share price, soaring by impressive 1423.2% since its debut on BSE SME platform in August 2023. Investors who were part of IPO allocation saw significant gains, potentially earning 18.3 lakhs in just over eight months.