Shares of Deepak Nitrite fell more than 2% after Kotak Institutional Equities maintained its add rating on the stock but reduced the target price to ₹1,950. The downgrade came after the specialty chemicals maker reported a weaker-than-expected first-quarter performance, with earnings missing estimates and margins remaining under pressure.
Kotak highlighted that the latest quarterly results were significantly below expectations, reflecting ongoing cost and margin challenges. Adding to the concerns, the recent announcement of new U.S. tariffs has created additional uncertainty for the company’s international outlook.
Despite the near-term challenges, the brokerage noted that Deepak Nitrite’s cost-optimization measures could provide some support. It also underlined that the company’s upcoming growth projects are largely focused on the Indian market, which may help balance out external headwinds in the medium to long term.
Factoring in the weaker performance and global challenges, Kotak cut its EPS estimates for FY26 and FY27 by 17–19%. While retaining its add stance on Deepak Nitrite, the brokerage cautioned that short-term headwinds could cap stock performance, even as long-term growth opportunities remain intact.
Deepak Nitrite shares were trading at ₹1,819.00 as of 10:03 AM, down 2% from the previous close of ₹1,856.60. The stock opened weaker at ₹1,850.10 and has so far moved between an intraday low of ₹1,812.50 and a high of ₹1,854.90. On a 52-week basis, the stock has traded in the range of ₹1,775.00 on the lower end and ₹3,093.75 on the higher side.
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