Deepak Nitrite: Eye popping returns over the past 15 years; check capex plan
This stock has generated returns in excess of 98 times in 15 years. The company has taken up a capital expenditure plan at the cost of Rs 10,000 crore, which includes a R&D unit at the cost of Rs 100 crore. It is one of the country's prominent producers of chemical intermediates that makes specialty chemical products.
Kolkata: Indian chemical industry is expanding fast. As the economy is expanding, the chemicals and allied sectors, which needs specialty chemicals as intermediates, are also expanding fast. This is exactly where Deepak Nitrite fits in snugly. The stock has been one of the stars in the equity markets. It has generated multibagger returns of more than 98 times in the past 15 years. The Vadodara-based company has taken up an expansion plan of Rs 10,000 crore to spread its wings even more. Let's have a look at the company's fundamentals.
Business of Deepak Nitrite
Deepak Nitrite is a prominent manufacturer of chemical intermediates and specialty chemicals which are used in different industries. The core competence of the company is in the domains of basic chemicals, fine and specialty chemicals and performance products. Deepak Nitrite's manufacturing units are based in three states -- Gujarat, Maharashtra and Telangana. Deepak Chem Tech is a firm which is a subsidiary of Deepak Nitrite, which has moved into hydrogenation and has set up a unit in Dahej of Gujarat. The company will have a focus on cost management and innovation to tackle challenges such as the US tariffs on Indian imports. It is also trying to come up with new products in life sciences and specialty chemicals.
Deepak Nitrite stock performance
Deepak Nitrite has a market cap of about Rs 24,572.57 crore. The stock was trading at Rs 1,786.00, down Rs 16.00 (or 0.89%) at the close of session on October 8. The share has generated an astounding return of more than 9,645% over the past 10 years. The company's share price was Rs 18.20 on October 12, 2010. The closing price of October 8 was 98.13 times of that price.
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