Deepak Nitrite Falls to 52-Week Low of Rs.1558.2 Amidst Prolonged Downtrend

Stock Price Movement and Market Context

On 27 Nov 2025, Deepak Nitrite’s share price touched Rs.1558.2, its lowest level in the past year. This price point follows a six-day consecutive decline, during which the stock has recorded a cumulative return of -8.99%. The stock’s day change was noted at -0.51%, moving in line with the Specialty Chemicals sector’s overall performance for the day.

In contrast, the Sensex opened higher at 85,745.05 points, gaining 135.54 points (0.16%) and was trading near its 52-week high of 85,801.70, just 0.09% away. The benchmark index has been on a three-week consecutive rise, accumulating a 3.01% gain, supported by strong performances from mega-cap stocks. The Sensex is currently trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a bullish trend for the broader market.

Deepak Nitrite’s share price, however, remains below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a persistent weakness relative to its historical price levels and the broader market momentum.

Financial Performance and Valuation Metrics

Over the last year, Deepak Nitrite’s stock has generated a return of -42.71%, a stark contrast to the Sensex’s 6.84% gain over the same period. This underperformance is accompanied by a decline in profitability, with reported profits falling by 33.1% year-on-year.

The company’s operating profit has shown a negative compound annual growth rate of -4.38% over the past five years, reflecting subdued long-term growth trends. The most recent quarterly results for September 2025 reveal a profit before tax (PBT) of Rs.143.08 crores, down 23.0% compared to the average of the previous four quarters. Similarly, the profit after tax (PAT) for the quarter stood at Rs.118.71 crores, representing a 21.8% decline relative to the prior four-quarter average.

Return on capital employed (ROCE) for the half-year period was recorded at 11.29%, one of the lowest levels in recent times. The company’s ROCE of 10.5% combined with an enterprise value to capital employed ratio of 3.5 suggests a valuation that is relatively expensive when compared to its capital efficiency.

Despite these challenges, Deepak Nitrite’s valuation remains broadly in line with the historical averages of its peer group within the Specialty Chemicals sector.

Comparative Performance and Market Position

Deepak Nitrite has consistently underperformed the BSE500 index over the last three annual periods, reflecting a trend of relative weakness within the broader market context. The stock’s 52-week high was Rs.2778.9, indicating a substantial decline of approximately 44.0% from that peak to the current 52-week low.

Despite the subdued price performance, the company exhibits certain strengths in its financial structure. The average debt-to-equity ratio stands at a low 0.04 times, indicating minimal leverage and a conservative capital structure. Additionally, management efficiency is reflected in a return on equity (ROE) of 21.28%, which remains robust relative to industry standards.

Institutional investors hold a significant stake of 28.91% in the company, suggesting a level of confidence from entities with extensive analytical resources and fundamental research capabilities.

Sector and Industry Context

Deepak Nitrite operates within the Specialty Chemicals industry, a sector characterised by cyclical demand and sensitivity to raw material prices and global economic conditions. The stock’s recent price movements and financial results reflect a combination of sector-specific pressures and company-specific factors.

While the broader market, as represented by the Sensex, has shown resilience and upward momentum, Deepak Nitrite’s share price trajectory diverges, highlighting the challenges faced by the company in maintaining growth and profitability levels in a competitive environment.

Summary of Key Financial Indicators

To summarise, Deepak Nitrite’s recent financial and market data reveal:

• New 52-week low price of Rs.1558.2 after six consecutive sessions of decline


• One-year stock return of -42.71%, contrasting with Sensex’s 6.84% gain


• Profit before tax for September quarter at Rs.143.08 crores, down 23.0% versus prior quarterly average


• Profit after tax for the same quarter at Rs.118.71 crores, down 21.8%


• Return on capital employed at 11.29% for the half-year period


• Low debt-to-equity ratio averaging 0.04 times


• Return on equity at 21.28%


• Institutional holdings at 28.91%

These figures provide a comprehensive view of the company’s current financial standing and market valuation, contextualised within the broader industry and market environment.

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