Morgan Stanley has maintained its “Overweight” rating on Deepak Nitrite, reducing the target price to ₹3,000 from ₹3,295, reflecting a cautious stance due to tough pricing conditions and limited margin levers. For PI Industries, the brokerage has maintained its “Equal-weight” rating, slightly raising the target price to ₹4,310 from ₹4,300, acknowledging resilience amid sector headwinds.
The Q2 results highlighted a lack of pricing and margin levers for incumbents, with earnings cuts, guidance resets, and limited confidence for 2025. While recovery expectations stay bullish, challenges persist with subdued monetization and sub-par returns. Morgan Stanley sees more visible signs of repair in non-agrichemical commodity chemicals and prefers Deepak Nitrite for its positioning.
Disclaimer: This report is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making investment decisions.
