Deepak Nitrite is a Baroda Based company manufacturing Organic,Inorganic ,Fine and Speciality chemicals.Its product list covers Sodium Nitrite,Methoxamyne,Resorcinol,Xylidine, Acetoxime, Alkali Blue, Benzotriazole, N-O-Alkylated Hydroxylamines..etc.These products are mainly used in the manufacturing process of Agrochemical Intermediaries,Bulk Drugs, Brightning Intermediaries and Rubber Chemicals.DNL is India’s largest manufacturer of Diamino Stilbene Disulfonic Acid which is using for manufacturing Optical Brightning Agents..Last year company started the work of a Greenfield Chemical project in Gujarat which will increase its capacity substantially going forward. What catching our attention in this company is its recent launch of Fuel Additive Products. These products are used for improving the quality and efficiency of fuels and make it latest Euro compliant . Company’s products from this division is expected to play a crucial role in India’s transformation from Euro 1 to Euro II and Euro IV standards .Company already got orders from domestic refineries and expected a turnover of around Rs.75 Cr from this division by next financial year. It is sure ,Government will eventually make Euro Compliance to all cities in not so distant future. This will open huge opportunity for the company going forward. In the financial front company has posted an EPS of Rs.22/- and declared a dividend of 50% in last FY.The first quarter of this FY was even better and it is expected to improve its performance going forward due to the overall improvement in the user industries of its products.Currently DNL is trading at Rs.191/- .Medium to long term investors can BUY at current level.
Here are few links below. Seems like very interesting future.
ReplyDeletehttp://www.valuenotes.com/valuenotes/CompanyNewsDetails.asp?NewsType=EOD&NewsId=2044554&CompanyCode=12080004
http://www.indiainfoline.com/Research/LeaderSpeak/Sanjay-B.-Upadhyay-Vice-President-Finance-Deepak-Nitrite-Limited/17871546
http://www.equitybulls.com/admin/news2006/news_det.asp?id=66274
http://en.wikipedia.org/wiki/European_emission_standards
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/petrochem/Deepak-Nitrite-to-sell-fuel-additives-in-local-overseas-markets/articleshow/5438656.cms
Any idea who may be the largest competitors in this space for Deepak Nitrites?
ReplyDeleteDear BH
ReplyDeleteThanks for the additional information which will always help everyone to take a decision with own home work. As far as my understanding,no big competition for this particular product from listed space.
dear sir,
ReplyDeleteonce again kudos to identify such gems. you recommend nearly 20 scrips in a month , but we are not able to invest in all. whether it is possible to recommend weightage for your scrip recommendation , that means how much % we can hold in our portfolio ?
thnaks
Hi Gopi,
ReplyDeleteIt is individual decision to invest in scrips.
Not all scrips can appeal to someone.
However it is my personal opinion that percentage does not matter much. Selection of right stocks and period of holding is however very important.
You can allocate high percentages to scrips which you are more bullish upon.
Company's current fuel additive business is just 1% of its annual revenue. And company's other product margins r quite low as 3.6% And need to know how much margins of fuel additive business.Do you have any idea on fuel margins .. valuepick or BH
ReplyDelete