Deepak Chem Tech, a subsidiary of Deepak Nitrite, and the Gujarat government have signed a memorandum of understanding to invest roughly 5,000 crores over the next four years in projects to establish the production of specialty chemicals, phenol/acetone, and eisphenol at Dahej/Nandesari. As a result, shares of Deepak Nitrite are up 10% today.
Specialty chemicals are essential to the pharmaceutical and agricultural sectors’ ability to satisfy demand. Many end-user sectors, including laminates, plywood, medicines, paint, and adhesives, employ acetone and phenol. Bisphenol, which is used in epoxy and adhesives, is the most major feedstock for polycarbonate, which has several applications in the domains of automotive, electrical and consumer products, defense, and medical equipment.
The utilization rates of the Nandesari plant and updates on other expenditures that were being undertaken were two of the primary topics that were expected at the company’s March quarter report.
According to a brokerage research, MOSL, “the company would command a better valuation if it ventured into specialty or complex products.” At Deepak Nitrite, the results for the March quarter were broadly in line with expectations.
Technically speaking, the stock on the BSE began at Rs 1,950 per share and traded between a high of Rs 2,144 and a low of Rs 1,935.
On November 3, 2022 and July 1, 2022, respectively, the share reached a 52-week high of Rs 2,355.55 and a 52-week low of Rs 1,682.15 in value. On May 24, it was 9.79% lower than its 52-week high and 26.33% higher than its 52-week low.
This company has been in a consolidation period for the last several months, but now we are witnessing traction with prices up more than 9%, according to Rajesh Bhosale, Equity Technical and Derivative Analyst, Angel One.
Prices have emerged from a recent period of consolidation, and Bhosale expects this movement to continue in the short term. He identified 2,450 as an immediate resistance level and advised investors to take advantage of any falls around 2050 as a buying opportunity.