Kotak Institutional Equities has maintained its add rating on Deepak Nitrite but cut the target price to ₹1,950 after the company posted a weaker-than-expected first-quarter performance. Earnings were comprehensively below estimates, reflecting continued margin pressure. Kotak also flagged that the announcement of new U.S. tariffs has added further uncertainty to the company’s outlook.
The brokerage said cost-cutting measures should provide some cushion, and noted that the company’s growth projects are largely targeted at India, which could help offset international pressures over time. However, in light of the weak quarterly showing and a more challenging external environment, Kotak has cut its EPS estimates for FY26 and FY27 by 17–19%. It maintained an add stance, citing long-term growth potential but acknowledging that near-term headwinds could limit performance.
Disclaimer: The views and recommendations made in this article are those of Kotak Institutional Equities. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
