Should I buy Deepak Nitrite stock in 2025? (India)

What is Deepak Nitrite?

How much is Deepak Nitrite stock?

The price of Deepak Nitrite stock is rising this week. As of now, the stock trades at ₹2,118.50, reflecting a 24-hour gain of +0.37%, while the weekly performance shows a decline of -5.31%. The company’s market capitalization stands at ₹28,926 crore, with an average daily volume of 344,457 shares over the past three months.

Deepak Nitrite currently trades at a P/E ratio of 8.51, offers a dividend yield of about 0.5%, and has a stock beta of 0.85, indicating slightly lower volatility than the broader market. Investors should keep an eye on recent performance dips, but the stock’s stable fundamentals and moderate volatility may appeal to those seeking opportunities in the specialty chemical sector.

Our full analysis on Deepak Nitrite stock

Having rigorously reviewed Deepak Nitrite’s most recent financial disclosures, historical stock performance over the past three years, and sectoral dynamics, we apply proprietary analytics that integrate financial indicators, technical signals, and competitive benchmarks. This multi-faceted approach enables us to identify emergent themes driving the company’s strategic positioning within India’s specialty chemicals landscape. So, why might Deepak Nitrite stock once again become a strategic entry point into the chemicals and specialty materials sector in 2025?

Recent Performance and Market Context

Deepak Nitrite (NSE: DEEPAKNTR) currently trades at ₹2,118.50, with a recent weekly decline of -5.31%, positioning the stock closer to its 6-month low of ₹1,780 but well below its 52-week high of ₹3,169. Over the last three years, the stock has remained a benchmark name among India’s specialty chemical leaders, consistently attracting institutional flows and segment-wide interest, even amid near-term earnings volatility.

Despite a difficult Q3 FY2024-25—as net sales fell 5.27% Y/Y and net profit dipped a sharper 49.49% Y/Y—the macroeconomic context remains robust. The continued global shift toward supply-chain diversification ("China+1" strategy) is empowering Indian specialty chemicals firms. Domestic demand, buoyed by consumption-driven sectors and strategic investments, lends resilience to the sector, even during periods of global softness. Recent underperformance in the share price could thus be seen as creating a more attractive valuation floor for long-term entrants.

Key Recent Positives

• Deepak Nitrite’s market capitalisation remains healthy at nearly ₹29,000 crore, indicating continued investor confidence.
• The company’s diversified demand base and vertical integration help offset cyclical sectoral headwinds.
• Upcoming expansion in specialty chemicals and phenolics segments implies strong revenue recovery potential.

Technical Analysis

From a technical perspective, Deepak Nitrite finds itself at a pivotal juncture.

• Current RSI (14): 51.92—neutral, suggesting the stock is neither overbought nor oversold post recent correction, allowing scope for renewed upward movement.
• MACD: -1.03 and Stochastic at 40 reflect near-term consolidation, which often precedes a reversal when aligned with sectoral upswings.
• Moving Averages: The 20-day MA lies just below the current price, while the 50-day and 100-day are above, hinting at a recent correction but also an opportune base formation.
• Key Support: ₹1,800, tested and held firm during February 2025, marked a multi-month floor coinciding with a historically oversold RSI (
• Key Resistance: ₹2,254—breaking above this could trigger a substantial technical rally towards the consensus target of ₹2,753.

Momentum indicators and the strong support at ₹1,800 suggest a bottoming phase, especially as stochastic signals stabilize and overall sector sentiment improves. The current price structure offers a sound risk-reward paradigm for those looking to enter ahead of the next anticipated trend move.

Fundamental Analysis

Deepak Nitrite’s fundamentals present a combination of cyclical resilience and structural potential.

• Revenue and Profit Trends: While Q3 reflected a challenging environment with a contraction in both sales and profit, the second quarter of FY2024-25 saw revenue jump over 14% Y/Y, reflecting elasticity and adaptive capacity. Analysts concur that Q3 softness appears transitory, related as much to sectoral and global inventory adjustments as to company-specific headwinds.
• Valuation: A P/E of 8.51x and book value per share of ₹224.11 suggest that the stock remains attractively valued relative to both its historical multiples and peer averages in the specialty chemicals universe. The consensus analyst target stands at ₹2,753 (+30% upside potential).
• Profitability: Despite interim margin compression, Deepak Nitrite has historically delivered industry-leading ROCE and EBITDA margins, thanks to vertical integration and its differentiated product mix.
• Strategic Expansion: The company’s expansion in phenolics—via wholly-owned arm Deepak Phenolics Ltd—positions it to capture margin-accretive growth in higher-value intermediates for pharmaceuticals, agrochemicals, and performance materials.
• Structural Strengths:
• Market leader in sodium nitrite (80% share), nitrotoluene (50%), and fuel additives (75%).
• Prestigious client base: Bayer, Syngenta, BASF, Indian Oil, Unilever, L’Oreal, Reliance.
• Vertically integrated operations and advanced manufacturing infrastructure in Gujarat.
• Brand and Innovation: Its brand equity and history of consistent innovation, especially in shifting value-add downstream, continue to provide a structural moat against both domestic and international competitors.

Volume and Liquidity

Sustained average daily volumes (344,457 shares) and a prevailing VWAP at ₹2,087.25 reflect robust liquidity and active institutional participation. The moderate float, combined with a manageable beta of 0.85, supports the thesis of a relatively less volatile investment, a notable advantage within the context of Indian mid-cap chemicals.

Significant trading volume during price corrections further underlines market confidence—participants are willing to accumulate at support levels, indicating belief in the company’s medium-to-long-term narrative.

Catalysts and Positive Outlook

Deepak Nitrite’s forward trajectory is underpinned by a confluence of sectoral catalysts and internal initiatives:

• “China+1” Strategic Tailwind: As global supply chains decentralize from China, India’s specialty chemicals sector and Deepak Nitrite in particular stand to benefit from incremental demand and technology transfers.
• Expanding Specialty Chemicals and Phenolics: Capacity additions and technology upgrades are set to drive higher-margin specialty product revenues, helping offset cyclical pressures in basic chemicals.
• ESG Initiatives: The company’s continued focus on sustainability, efficient waste management, and safe manufacturing processes positions it favorably with both global clients and increasingly ESG-focused investors.
• Policy and Regulatory Support: Alignment with Government of India’s “Make in India” and PLI schemes ensures policy tailwinds, easing expansion and incentivizing R&D investments.
• M&A/Joint Ventures: Deepening collaborations with major global chemical giants (both clients and partners) create a potent springboard for further product diversification and export-led growth.

With global chemical demand gradually recovering and domestic consumption buoyed by reforms and infrastructure expansion, Deepak Nitrite’s positioning seems primed for a re-acceleration phase, especially ahead of cyclical upwind.

Investment Strategies

Given the current technical set-up and attractive valuation, Deepak Nitrite’s stock lends itself to a spectrum of investor strategies:

• Short-term: The stock’s positioning just above robust support at ₹1,800 offers clear downside protection. A technical rebound towards the first resistance at ₹2,254 can yield meaningful gains for swing traders, particularly as momentum indicators stabilize.
• Medium-term: For position traders and portfolio managers, entering at current levels allows participation in the next upward cycle, with potential catalysts being the Q1 or Q2 FY2025-26 earnings, recovery in specialty chemical margins, or sector-wide re-rating on macro improvements. Targeting the analyst consensus price of ₹2,753 is a justifiable medium-term outlook.
• Long-term: Strategic investors focused on India’s rising role as a chemicals manufacturing powerhouse can take advantage of current consolidation to accumulate. Deepak Nitrite’s combination of core market dominance, aggressive downstream value addition, disciplined capital allocation, and ESG adoption suggests compounding potential well into the next decade.

For all time horizons, accumulating on pullbacks—particularly near technical lows or ahead of known catalysts such as earnings announcements or expansion news—appears well suited to both conservative and growth-oriented mandates.

Is it the Right Time to Buy Deepak Nitrite?

In summary, Deepak Nitrite’s current valuation, sector dominance, and poised expansion in the specialty and performance materials ecosystem together make for a highly compelling investment narrative. While short-term earnings volatility is worth monitoring, the structural strengths—a diversified portfolio, world-class client relationships, market-leading market share, and impressive vertical integration—clearly position the company to benefit from bullish macro and sectoral developments.

The balance between downward support and upside technical levels, combined with visible catalysts on the horizon (sector tailwinds, new product launches, and policy support), reinforce the case for renewed accumulation at these levels. The fundamentals, technical posture, and volume dynamics justify serious consideration for new and existing portfolios alike.

For investors seeking exposure to the next phase of India’s global chemical ascendancy, Deepak Nitrite seems to represent an excellent opportunity, with the stock’s current consolidation phase offering an attractive entry point that aligns favorable technical timing with a powerful long-term growth story.

As Deepak Nitrite embarks on the next leg of its journey, the confluence of structural strength and sectoral catalysts may well propel it into a new bullish phase—one that discerning investors should be watching closely.

How to buy Deepak Nitrite stock in IN?

Buying Deepak Nitrite shares online is an accessible and secure process for retail investors in India. Thanks to regulated brokers approved by SEBI, you can own shares directly in your demat account, or trade their price movements through contracts for difference (CFDs). The two main approaches—spot buying and CFDs—each have their specific benefits and considerations, whether you seek straightforward equity ownership or want to actively trade price fluctuations. For more information on how Indian brokers compare in terms of fees, features and regulatory standing, see the detailed broker comparison further down this page.

Spot Buying

Spot buying means purchasing Deepak Nitrite shares outright on the National Stock Exchange (NSE: DEEPAKNTR) or Bombay Stock Exchange (BSE: 506401), making you the real owner of the company’s stock. Your shares are held safely in your demat account. Indian brokers typically charge a flat commission per order, which can range from ₹15 to ₹20, and minor GST and stamp duty charges (less than ₹10 per ₹1 lakh traded is common).

Important example

Example:
- Deepak Nitrite share price: ₹2,118.50 (as of May 2025).
- With ₹83,000 (about $1,000 at an exchange rate of ₹83/USD), you can buy approximately 39 shares (₹83,000 ÷ ₹2,118.50 ≈ 39) including a brokerage fee of around ₹415 ($5).
- ✔️ Gain scenario: If the share price rises 10% to ₹2,330.35, your holding is worth ₹90,884.
- Result: You gain ₹7,884 gross (+10% on your initial investment, before taxes and charges).

Trading via CFD

CFD trading on Deepak Nitrite allows you to speculate on the stock price without owning actual shares. CFDs are leveraged contracts provided by brokers, widely popular among active traders thanks to their flexibility (including going long or short). In this method, your fees include the spread (the difference between buy/sell price), and if you hold overnight, overnight financing (typically 0.05%-0.1% daily on the leveraged portion).

Important example

Example:
- You invest $1,000 (₹83,000) as margin, with 5x leverage, giving exposure to ₹415,000 worth of Deepak Nitrite CFDs.
- ✔️ Gain scenario: If the share price climbs by 8%, your position gains 8% × 5 = 40%.
- Result: Gross profit is ₹33,200 (=$400, or 40% of your ₹83,000 margin), before fees/interest.

Final Advice

Before investing in Deepak Nitrite, it’s essential to compare brokers in India on factors such as commission structures, fund safety, platform quality, and market access. Your choice—cash purchase (for equity ownership and dividends) or CFDs (for flexibility and leverage)—will depend on your investment goals, risk tolerance, and interest in active trading. For tailored guidance and transparent broker comparisons, be sure to review the resources further down this page. Investing is within your reach—start strategically and make informed choices!

Our 7 tips for buying Deepak Nitrite stock

The latest news about Deepak Nitrite

Deepak Nitrite’s stock remains resilient with a stable share price of ₹2,118.50 and a market cap near ₹29,000 crore. Despite experiencing a 5.31% decline over the last week, the company’s 24-hour performance posted a modest gain of 0.37%, signaling short-term stability after previous selling pressure. The price remains well above its recent strong support at ₹1,800, with technical indicators such as a neutral RSI of 51.92 and the 200-day moving average below the current price, providing technical underpinnings for potential rebounds in the near future.

The company continues to dominate key chemical segments with robust domestic market shares and a diversified client base. Maintaining commanding shares of 80% in sodium nitrite, 75% in fuel additives, and 50% in nitrotoluene, Deepak Nitrite is well-positioned as a critical supplier within India. Its customer portfolio spans more than 1,000, including industry majors such as Indian Oil, Reliance, and global multinational partners, ensuring a steady offtake across end-markets and providing resilience in a competitive landscape.

Strategic expansion of the specialty chemicals and phenolics businesses positions Deepak Nitrite for upcoming growth opportunities. The company is benefitting from the global “China+1” supply chain diversification strategy, which has put Indian chemical manufacturers in the spotlight for multinational procurement. The ongoing enhancement of Deepak Phenolics Limited, their wholly-owned subsidiary, further entrenches Deepak Nitrite’s leadership in downstream specialties and advanced intermediates, supporting long-term revenue diversification.

Analyst consensus indicates an upside with a target price of around ₹2,753, suggesting market confidence in a medium-term recovery. While recent Q3 FY2024-25 results saw net sales decline by 5.27% and profit drop sharply by 49.49% year-over-year (missing estimates), the current valuation—a P/E ratio of 8.51 times book and a beta of 0.85 signaling below-market volatility—underlines investor perception of Deepak Nitrite as a fundamentally strong, lower-risk play among Indian specialty chemical stocks.

Management stability and vertically integrated operations continue to support Deepak Nitrite’s operational strength in India’s chemical sector. Leadership by Deepak C. Mehta and Maulik Mehta, alongside a diversified product and manufacturing base in Gujarat, ensures the company remains agile in addressing regional and regulatory challenges. Strong relationships with both domestic and international partners, as well as ongoing capital allocation to high-growth verticals, underscore Deepak Nitrite’s central role in India’s chemical manufacturing ascent.

FAQ

FAQ

Nishadh Mohammed

Nishadh Mohammed is a seasoned news editor and financial writer, working with HelloSafe since May 2023. Nishadh has developed expertise in financial markets, insurance, and investment products, with a deep understanding of the Canadian financial landscape. He has honed his SEO skills and content marketing strategies while writing for Canadian publishing houses. Armed with a master's in Business Analytics and extensive journalistic experience, Nishadh uniquely combines data proficiency and thorough research to deliver comprehensive and accessible information.