Deepak Nitrite shares rise 5% on major capex plan, check details  

Shares of Deepak Nitrite rose over 5% on Friday after the  speciality chemicals player said its subsidiary Deepak Chem Tech would invest Rs 3,500 crore, raised through a mix of debt and equity. The amount will be used to set up a manufacturing complex to produce phenol and other solvents used in the production of other chemicals. 

On Friday, Deepak Nitrite shares climbed 5.56% to Rs 1,907 against the previous close of Rs 1806 on BSE. Market cap of the firm rose to Rs 26,029 crore. 

Total 0.16 lakh shares of the firm changed hands amounting to a turnover of Rs 2.93 crore. The stock fell to a 52-week low of Rs 1780.50 on April 7, 2025 and a 52 week high of Rs 3168.65 on August 1, 2024. 

Meanwhile, Morgan Stanley has maintained an overweight stance on Deepak Nitrite with a target price of Rs 2,421. On the capex announcement, the global brokerage said the per unit capex appears largely in line with similar greenfield investments seen recently. 

The brokerage expects the net debt/equity will rise to ~0.4x by F27. It believes that timely execution on announced projects will underpin multiples.

Deepak C. Mehta, Chairman and Managing Director of Deepak Nitrite Limited said, "Deepak Group is committed to create one of the most integrated capacities, which wi[[ give it great resitience and strength that is a must in current times. The products being import substitute, wit[ increase our Groups contribution towards Atmanirbharata and the path of Vikshit Bharat."

Separately, the Board of DCTL also approved investment of around Rs 220 crore to support its foray into speciality flouro chemicals.

Deepak Nitrite stock is trading near the oversold zone,  signals its relative strength index (RSI) which stands at 30.6. Deepak Nitrite shares are trading lower than the  5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages. 

"The Board of Directors of Deepak Chem Tech Limited ('DCTL'), a material wholty owned subsidiary of Deepak Nitrite Limited ('the Company'), at their meeting hetd today i.e. 9th Aprit, 2025 , inter alia considered and approved setting up manufacturing comptex to produce Pheno[ & Acetone, lsopropytAtcohol and retated infrastructure / utitities with the aggregate investment of around Rs 3,500 Crores which shatl be funded through the mix of debt and equity," said Deepak Nitrite. 

Deepak Nitrite is a leading chemica[ intermediates producer with a diversified portfotio catering to the colorants, life sciences, ptastics, textites, laminates, automobites, paints, resins, construction chemicals and energy sectors. lts products are manufactured across six locations, all of which are accredited by Responsibte Care. The company is certified by Ecovadis, TfS and is atso a part of the Nicer Gtobe Attiance.