Hey Traders. The chemical sector in India has performed really well in India from the past few here. In this post, we will check Deepak nitrite share price target, another popular chemical stock. The stock has risen by almost 24% in the last two months and given multiple breakouts. First, let us check what the company does.
Deepak Nitrite Limited is a leading Indian chemical manufacturing company. Established in 1970, it operates in multiple segments: Basic Chemicals, Fine & Specialty Chemicals, and Fluorescent Whitening Agents. The company serves various sectors like agrochemicals, pharmaceuticals, dyes and pigments, and rubber chemicals. If you are looking for Cheap stocks, check out Best Chemical Penny stocks in India.
Further in this article, in order to Predict Deepak Nitrite share price target, we will study its financial performance. We will also check how the stock performs on charts and whether it’s the right time to buy the stocks.
Deepak nitrite share price target for 2023
In 2023, Deepak nitrite share price target can be seen up to ₹2315. If we check the company’s financial statements, it has shown consistent net sales growth over the past five years, with the highest revenue recorded in the fiscal year ending March 2023 at Rs. 3,033.55 Cr.
This represents a significant increase compared to the previous years, including Rs. 2,511.05 Cr in FY22 and Rs. 1,809.14 Cr in FY21.
The company has successfully managed its expenditure, especially on how they consume raw materials, which has steadily increased over the years. In FY23, the consumption of raw materials reached Rs. 1,725.16 Cr, compared to Rs. 1,306.83 Cr in FY22 and Rs. 778.25 Cr in FY21.
Study the above chart of Deepak Nitrite. The stock was in a downtrend from Oct 2021, but now the stock has failed to make a lower low. Shares of this company have performed relatively better after its result in March 2023. The company has declared that its profit before tax has shown an upward trend, with the highest recorded in FY23 at Rs. 609.84 Cr, compared to Rs. 478.61 Cr in FY21.
The profit after tax has also seen consistent growth, reaching Rs. 469.39 Cr in FY23, compared to Rs. 486.21 Cr in FY22 and Rs. 354.72 Cr in FY21. The stock has been in an uptrend on 4-hour timeframe since then. Now lets find Deepak nitrite share price target for longer term.
Short term share price prediction for Deepak Nitrite
In order to forecast price targets for the short term, I will use 1-hour time frame to analyse the chart. Look at the price chart above and make note of the following points
- Deepak Nitrite was in a consolidation phase for 2 months from Feb-April. It then failed to make a new lower low.
- After a failed attempt to make a lower low, the stock has been in a continuous uptrend since then.
- RSI is rising steadily, which suggests that the up move has strength and momentum.
- The stock is currently facing resistance at level 2130.
- After experiencing a minor retracement to the level of 2000, we can see a notable upward movement. Deepak Nitrite share price target for the short term (1-3 months will be 2160 as our first target and 2250 as our second target.
DEEPAKNTR price target for 2024
Deepak nitrite’s share price target for 2024 can be ₹2616. We can expect some retracement before the stock touches level 2915. This is because a lot of buyers might be trapped at those levels and will slowly exit their positions as the stock continues to move upwards.
But the ability to maintain a stable equity share capital of Rs. 27.28 Cr over the years will help the stock shine in coming years.
The earnings per share (EPS) have shown a positive trend, with basic EPS at Rs. 34.41 in FY23, compared to Rs. 35.65 in FY22 and Rs. 26.01 in FY21. This demonstrates the company’s ability to generate earnings for its shareholders.
Share Price Forecast (Prediction) table for Deepak Nitrite for 2023, 2025, upto 2030
| Year | Deepak Nitrite Share Price Target (₹) |
|---|---|
| 2023 | ₹2315 |
| 2024 | ₹2616 |
| 2025 | ₹2945 |
| 2026 | ₹3042 |
| 2027 | ₹3362 |
| 2028 | ₹3817 |
| 2029 | ₹4396 |
| 2030 | ₹6069 |
Reasons why Deepak Nitrite can double its value
Deepak Nitrite can definitely be more than double its value by 2030. The chemical sector in India is expected to grow strongly in the next few years. Many factors, such as positive Government policies, are helping the chemical industry to grow. China’s strict environmental regulations are causing other countries to look towards India for their chemical requirements.
In one of its reports, McKinsey said, “India is expected to account for more than 20 per cent of incremental global consumption for chemicals over the next two decades. Domestic consumption and demand is expected to rise from USD 170-180 billion in 2021 to USD 850-1000 billion by 2040”
Conclusion
In conclusion, Deepak Nitrite’s share price target showcases an optimistic outlook for investors. With the ever rising demand, the future of the chemical sector in India is bright.
The company’s strong financial performance and consistent growth over the years have earned it recognition and trust within the industry. Deepak Nitrite’s commitment to customer satisfaction, technological advancements, and ethical business practices has helped establish its reputation as a reliable and reputable chemical manufacturer.
