This article can explore the possibility of Deepak Nitrite Limited as a Multibagger 2021 Stock based on Value Investing principles. Deepak Nitrite Limited is an outstanding chemical manufacturing company incorporated and based in India.
https://futurecaps.com/portfolio/deepak-nitrite-limited-multibagger-analysis-2021-2/
2. DeepakNitrite is…
an outstanding chemical manufacturing company incorporated
and based in India.
Deepak Nitrite Limited’s Basic Chemicals factory unit produces
intermediates for dyes and pigments rubber fuel additives
pharmaceutical agrochemicals and explosives. The company’s
Performance Products (PP) business segment produces
chemicals that are reckoned for the particular characteristic
they present to the end merchandise. Deepak Nitrite is the only
fully integrated producer of Optical Brighteners (OBAs) which is
reserve integrated up to the feedstock of toluene.
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DeepakNitriteLimited
They commissioned the plant at Dahej,
Gujarat, in November last year that can
produce up to 200,000 tonnes of phenol
and nearly 120,000 tonnes of acetone, a
by-product, yearly. The capacity utilisation
is already at higher than 80 per cent,
Chairman and Managing Director Deepak
Mehta announced during the earnings call
for the third-quarter outcomes. It
examined to have 100 per cent utilisation
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8. Deepak Nitrite has an
audience in over 30
countries all over the globe
and also has about 70% Market
cut in Sodium Nitrite & Nitro
Toluenes in India. They are one of
the most extensive yielders of
Phenol and Acetone. The
company has invested 1700cr in
all its augmentation in setting
Greenfield projects since 2016.
The corporation is also Top 3
manufacturers in the world for
Xylidines, cumin des & oximes.
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POSITIVES
•In the last 10 years, the business has emerged from smallcap to Midcap And in
the succeeding 10 years, it can reconstruct itself from Midcap to Largecap.
•China’s crackdown on befouling units caused an interruption in accumulation
supply, serving Deepak Nitrite’s revenue growth as it shifted the centre to the home
market.
•The new phenol-acetone manufactory will thrust the business into the next
growth period.
•Cash flows from this trade would aid the expansion of downstream derivatives
and speciality chemicals business.
•Capacity addition in standalone business and expansion into downstream
derivatives of the phenol-acetone industry provides extensive growth
possibilities.
•The market for Phenol has been expanding in India at a rate of 9-10 per annually.
There is also an improvement in the overseas market too. parts to the shutting
down of factories in the US.
•The Intrinsic Value is 9699.97 Copyright@2021 www.Futurecaps.com
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NEGATIVES
•Fluctuating prices of products: As per changes in the prices
of raw materials can directly affect the prices of the products
in the company’s line-up.
•Higher raw material costs: Due to the company’s
dependency on outsourcing raw materials they don’t have
any control over the fluctuations in prices of the raw
materials.
•Competition in the Industry: It is very hard to compete in
the chemical industry for the global market due to the
presence of competition from the Chinese market
•Currency fluctuations and regulatory changes: Because
the company is marketing its products for the global market
the fluctuation in the currency of each country can cause a
downfall in the performance of sales
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13. SUMMARY
This company can be a 5X Multibagger in next 5 Years. Please
refer the Summary for Subscription & Updates..
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It is for the general informationf or the Subscribers of Futurecaps. While reasonable care has been taken in the
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developments referred to herein, and we do not warrant its accuracy or completeness. Futurecaps Research
Analyst or representatives do not take any responsibility, financial or otherwise, of the losses or the damages
sustained due to the investments made or any action taken on basis of this report.
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