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Deepak Nitrite Gets 'Add' Rating As ICICI Securities Initiates Coverage — Here's Why
Deepak Nitrite generates strong operating cashflow, and company has embarked on large capex into import substitution products which should ensure medium term earning growth, says ICICI Securities.
15 Apr 2025, 11:21 AM IST 
Deepak Nitrite has a history of significant discipline in capital allocation, and has been smartly increasing capacities through de-bottlenecking – sodium nitrite, optical brighteners and phenol are a few such examples (Photo Source: Company website)
Deepak Nitrite is in the process of commissioning a few large projects that would help it see revenue/Ebitda/PAT CAGRs of 15%/21%/22% over FY25–27E; and FY28 onwards, growth is expected to leapfrog with its foray into PC. The next three years would be marked by a jump in capex investment – of over INR 100bn and likely stressed FCF; leverage may rise to Rs 65 billion at peak (from net cash). Reported return ratios are also likely to o...
