Deepak Nitrite Limited (DEEPAKNTR) AI Stock Analysis

Deepak Nitrite Limited

(NSE:DEEPAKNTR)

Select Model

Rating:54Neutral

Price Target:INR 1,550.00▲(2.01% Upside)

Action:reiterated

Date:08/17/26

The score is held back primarily by weakening financial quality—sharp margin compression and recent negative free cash flow—despite a still-manageable balance sheet. Technicals are moderately supportive with price above key moving averages and positive MACD, but valuation remains a headwind with a ~30 P/E and a low dividend yield.

Positive Factors

Diversified Chemical PortfolioThe broad product portfolio serves multiple industrial applications and end markets, reducing reliance on any single customer segment. This diversification can support more resilient demand over the next several quarters while allowing the company to participate across both commodity and higher-value chemical markets.

Negative Factors

Margin CompressionThe sustained decline in gross and net margins shows that a smaller share of sales is converting into operating and bottom-line profit. Persistently lower margins would weaken earnings resilience, reduce the payoff from revenue growth, and constrain the cash available for reinvestment.

Deepak Nitrite Limited (DEEPAKNTR) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 207.24B
Dividend Yield: 0.49%
Average Volume (3M): 57.98K
Price to Earnings (P/E): 19.5
Beta (1Y): 1.00
Revenue Growth: 25.13%
EPS Growth: 99.89%
Country: India
Employees: 1,720
Sector: General
Sector Strength: 55
Industry: Chemicals

Deepak Nitrite Limited Business Overview & Revenue Model

Company Description

Incorporated in 1970 and headquartered in Vadodara, India, Deepak Nitrite Limited operates as a prominent manufacturer and seller of a diverse portfolio of chemicals. Its offerings span basic, fine, and specialty chemicals, as well as performance pro...

How the Company Makes Money

Deepak Nitrite makes money primarily by manufacturing and selling chemicals and chemical intermediates to industrial customers, generating revenue through (1) sale of finished chemical products and (2) supply of intermediates that become inputs for c...

Deepak Nitrite Limited Financial Statement Overview

Summary

Fundamentals are mixed: profitability has meaningfully compressed (gross margin down to ~15% and net margin to ~7% by FY2026) and cash generation has weakened with negative free cash flow in FY2025–FY2026. The balance sheet remains relatively solid with moderate leverage (debt-to-equity ~0.28), but debt has risen versus prior years and ROE has cooled (~9% in FY2026).

Income Statement

58Neutral

Balance Sheet

70Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	85.06B	77.85B	80.91B	76.10B	78.83B	67.73B
Gross Profit	22.80B	11.47B	18.03B	18.79B	19.54B	21.91B
EBITDA	13.68B	10.28B	11.76B	12.79B	13.37B	16.46B
Net Income	7.83B	5.51B	6.97B	8.11B	8.52B	10.67B
Balance Sheet
Total Assets	0	86.81B	77.18B	60.96B	51.29B	44.30B
Cash, Cash Equivalents and Short-Term Investments	4.62B	4.64B	9.14B	5.83B	4.16B	4.79B
Total Debt	0	16.38B	12.67B	2.86B	728.60M	3.15B
Total Liabilities	-58.69B	28.11B	22.93B	12.74B	10.39B	10.92B
Stockholders Equity	58.69B	58.37B	53.89B	47.97B	40.90B	33.38B
Cash Flow
Free Cash Flow	-4.58B	-6.67B	-4.83B	1.06B	2.89B	6.37B
Operating Cash Flow	2.04B	5.17B	6.39B	8.78B	6.50B	8.24B
Investing Cash Flow	-2.15B	-6.85B	-15.25B	-7.22B	-2.76B	-4.24B
Financing Cash Flow	-1.46B	2.32B	8.26B	435.30M	-3.59B	-3.86B

Deepak Nitrite Limited Technical Analysis

Technical Analysis SentimentNeutral

Last Price1519.50

Price Trends

50DMA1612.82Negative

100DMA1638.09Negative

200DMA1616.70Negative

Market Momentum

MACD-36.58Positive

RSI46.11Neutral

STOCH35.51Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DEEPAKNTR, the sentiment is Neutral. The current price of 1519.50 is below the 20-day moving average (MA) of 1536.93, below the 50-day MA of 1612.82, and below the 200-day MA of 1616.70, indicating a bearish trend. The MACD of -36.58 indicates Positive momentum. The RSI at 46.11 is Neutral, neither overbought nor oversold. The STOCH value of 35.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:DEEPAKNTR.

Deepak Nitrite Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:DEEPAKNTR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:GNFC	72Outperform	INR 74.31B	7.15	―	4.15%	12.55%	84.52%
IN:VALIANTORG	64Neutral	INR 11.77B	21.82	―	―	1.41%	946.41%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:DEEPAKNTR	54Neutral	INR 207.25B	19.51	―	0.49%	25.13%	99.89%
IN:DEEPAKFERT	51Neutral	INR 138.86B	14.11	―	0.91%	13.63%	0.30%
IN:TATACHEM	47Neutral	INR 151.72B	-7.01	―	1.85%	2.04%	-742.43%
IN:ACI	45Neutral	INR 54.60B	56.12	―	0.57%	5.99%	-41.58%

* General Sector Average

Performance Comparison

IN:DEEPAKNTR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:DEEPAKNTR	Deepak Nitrite Limited	1519.50	-208.95	-12.09%
IN:ACI	Archean Chemical Industries Ltd.	442.25	-211.47	-32.35%
IN:DEEPAKFERT	Deepak Fertilisers and Petrochemicals Corporation Ltd.	1099.95	-376.72	-25.51%
IN:GNFC	Gujarat Narmada Valley Fertilizers & Chemicals Ltd.	505.70	17.50	3.58%
IN:TATACHEM	Tata Chemicals Limited	595.55	-266.41	-30.91%
IN:VALIANTORG	Valiant Organics Limited	419.85	114.85	37.66%

Deepak Nitrite Limited Corporate Events

Deepak Nitrite schedules Q2 and H1 FY27 earnings call for October 30

Oct 16, 2026

Deepak Nitrite Limited has announced that it will host an earnings conference call to discuss its financial results for the second quarter and half year of FY27, ended 30 September 2026. The call, scheduled for Friday, 30 October 2026 at 3:30 PM IST...

Deepak Nitrite Discloses Resignation of Life Sciences SBU Head

Aug 21, 2026

Deepak Nitrite Limited has announced a managerial change in its life sciences strategic business unit, with the resignation of Mr. Puneet Sharma as SBU Head – Life Sciences. His resignation is effective from the close of business on 21 August 2...

Deepak Nitrite Conducts 55th AGM Via Virtual Platform

Aug 5, 2026

Deepak Nitrite Limited held its 55th Annual General Meeting on August 5, 2026, via video conferencing and other audio-visual means, in line with regulatory circulars from the Ministry of Corporate Affairs and the Securities and Exchange Board of Indi...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026

Deepak Nitrite Limited AI Stock Analysis