Deepak Nitrite's stock witnessed a remarkable surge of 7%, reaching a new peak, following a double upgrade from Morgan Stanley. This positive development has undoubtedly boosted investor confidence in the company.
Anticipating further outperformance, Morgan Stanley highlights Deepak Nitrite's industry-leading metrics and top-quartile returns, expecting continued growth as new investments deliver results and earnings enhance.
Morgan Stanley anticipates that Deepak Nitrite should twofold its base profit by 2028, supported by the organization's push to turn into an incorporated, downstream phenolics maker.
Portions of Deepak Nitrite flooded almost 7% to hit a record high of Rs 2,619.80 on NSE after Morgan Stanley twofold overhauled the stock to "overweight" from its prior rating of "underweight."
The specialty chemicals stock's target price was also increased to Rs 2,985 by the international brokerage, representing a 22% increase from the previous closing price.
The cost target has been raised to mirror a higher numerous for the base business and a higher medium-term capex. As indicated by experts at Morgan Stanley, Deepak Nitrite's new and biggest venture cycle so far could drive the following leg of re-rating for the stock, much the same as the almost 5x + esteem creation seen from 2016 to 2019.
With this capital use pattern of more than $1 billion, there's likewise the adjustment of its center business, functional upgrades, volume improvements, and a hearty monetary record, experts noted.
Morgan Stanley anticipates that Deepak Nitrite should twofold its base profit by 2028, supported by the organization's push to turn into an incorporated, downstream phenolics maker.
"We think the powers of providence are lined up for Deepak Nitrite to reproduce its past progress when it caught almost 50% in India's phenol market, utilized an edge upcycle and saw agreement gauges ascend by almost 60% between the monetary year 2020 - 2022," the business said.
Experts see further space for outperformance for Deepak Nitrite because of its industry-driving working measurements and top-quartile returns and as new speculations fructify and reflect in the organization's profit.
Project slippages, slow execution and drowsy income are a portion of the critical dangers to the global company's evaluations.
Morgan Stanley has raised its FY25-26 income gauge for Deepak Nitrite by 3-7 percent, reflecting part realization of the continuous capex and better center profit supported by an aligned industry increase
Deepak Nitrite's shares on the National Stock Exchange (NSE) were trading at Rs 2,543.00, marking a 3.8 percent increase at 12:20 pm. Over the past year, the stock has shown a remarkable growth of 31 percent, outperforming the benchmark Nifty 50 index, which has risen by 23 percent during the same period.
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| Deepak Nitrite's stock |
Morgan Stanley anticipates that Deepak Nitrite should twofold its base profit by 2028, supported by the organization's push to turn into an incorporated, downstream phenolics maker.
Portions of Deepak Nitrite flooded almost 7% to hit a record high of Rs 2,619.80 on NSE after Morgan Stanley twofold overhauled the stock to "overweight" from its prior rating of "underweight."
The specialty chemicals stock's target price was also increased to Rs 2,985 by the international brokerage, representing a 22% increase from the previous closing price.
The cost target has been raised to mirror a higher numerous for the base business and a higher medium-term capex. As indicated by experts at Morgan Stanley, Deepak Nitrite's new and biggest venture cycle so far could drive the following leg of re-rating for the stock, much the same as the almost 5x + esteem creation seen from 2016 to 2019.
With this capital use pattern of more than $1 billion, there's likewise the adjustment of its center business, functional upgrades, volume improvements, and a hearty monetary record, experts noted.
Morgan Stanley anticipates that Deepak Nitrite should twofold its base profit by 2028, supported by the organization's push to turn into an incorporated, downstream phenolics maker.
"We think the powers of providence are lined up for Deepak Nitrite to reproduce its past progress when it caught almost 50% in India's phenol market, utilized an edge upcycle and saw agreement gauges ascend by almost 60% between the monetary year 2020 - 2022," the business said.
Experts see further space for outperformance for Deepak Nitrite because of its industry-driving working measurements and top-quartile returns and as new speculations fructify and reflect in the organization's profit.
Project slippages, slow execution and drowsy income are a portion of the critical dangers to the global company's evaluations.
Morgan Stanley has raised its FY25-26 income gauge for Deepak Nitrite by 3-7 percent, reflecting part realization of the continuous capex and better center profit supported by an aligned industry increase
Deepak Nitrite's shares on the National Stock Exchange (NSE) were trading at Rs 2,543.00, marking a 3.8 percent increase at 12:20 pm. Over the past year, the stock has shown a remarkable growth of 31 percent, outperforming the benchmark Nifty 50 index, which has risen by 23 percent during the same period.
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