India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Equity Bottom-Up

<ul>
<li>Deepak Nitrite spending INR 9000 crore on capex for backward integration and forward integration along with focus on import substitution with foray into domain like Polycarbonates and Fluorination</li>
<li>Deepak Nitrite promoters have been continuously increasing stake by 5% in the last few years and recently added 36 crore worth of equities</li>
<li>The most interesting thesis building operationally is the revival of its key chemical spreads</li>
</ul>


Deepak Nitrite spending INR 9000 crore on capex for backward integration and forward integration along with focus on import substitution with foray into domain like Polycarbonates and Fluorination
Deepak Nitrite promoters have been continuously increasing stake by 5% in the last few years and recently added 36 crore worth of equities
The most interesting thesis building operationally is the revival of its key chemical spreads


The Beat Ideas: What Makes Deepak Nitrite an Interesting Bet on Chemical Revival Theme

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Archean Chemical Industries / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/archean-chemical-industries" target="_blank" data-smartkarma-citation="entities:36520:1" rel="noopener">Archean Chemical Industries (0810406D IN)</a> is looking to raise about US$178m in its India IPO. </li>
<li>Archean Chemical Industries (ACI) is a specialty marine chemical manufacturer in India focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. </li>
<li>We have looked at the background of the deal in our earlier notes. In this note, we will talk about the peer comparison and valuations.</li>
</ul>



Archean Chemical Industries (0810406D IN) is looking to raise about US$178m in its India IPO. 
Archean Chemical Industries (ACI) is a specialty marine chemical manufacturer in India focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world. 
We have looked at the background of the deal in our earlier notes. In this note, we will talk about the peer comparison and valuations.


Archean Chemical Industries IPO - Strong Growth Makes It Worth a Shot

Forensic Analyst, Trudence Capital Advisors

Nitin Mangal

Forensic Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Forensic Accounting

<ul>
<li>
<a href="https://www.smartkarma.com/entities/deepak-nitrite-ltd" target="_blank" data-smartkarma-citation="entities:5845:1" rel="noopener">Deepak Nitrite (DN IN)</a> has emerged as one of the key players in the chemical intermediate industry over the last few years.</li>
<li>The company's emergence saw a structural and more or less a positive change in the balance sheet health and overall scheme of operations.</li>
<li>The green flags include strong balance sheet position and surging return ratios, while the red flags include poor cash transmission and margin losses lately.</li>
</ul>



Deepak Nitrite (DN IN) has emerged as one of the key players in the chemical intermediate industry over the last few years.
The company's emergence saw a structural and more or less a positive change in the balance sheet health and overall scheme of operations.
The green flags include strong balance sheet position and surging return ratios, while the red flags include poor cash transmission and margin losses lately.


External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

External broker reports(aggregated public sources)

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<div><div><div><div><ul><li>Deepak Nitrite (DN) reported a beat on our estimates. EBITDA came in 32% higher than our estimate at INR4.1b, while EBITDA margin, at 21.9%, was also higher than our estimate of 16.9% – albeit, at a multi-quarter low.</li><li>EBIT mix for Basic Intermediates/Fine and Specialty Chemicals improved to 25%/20% from 19%/15% in 3QFY22, with the contribution from Phenolics at 45% (down from an average of 64% in 1HFY22).</li><li>DN has maintained its highest ever utilization rate of 120% in the Phenolics business in 4QFY22, leaving limited growth in this segment from volume accretion.</li></ul><ul style="list-style-type: none;"><li><div><div><div><div><ul style="list-style-type: none;"><li> </li></ul></div></div></div></div></li></ul></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Deepak Nitrite (DN) reported a beat on our estimates. EBITDA came in 32% higher than our estimate at INR4.1b, while EBITDA margin, at 21.9%, was also higher than our estimate of 16.9% – albeit, at a multi-quarter low.EBIT mix for Basic Intermediates/Fine and Specialty Chemicals improved to 25%/20% from 19%/15% in 3QFY22, with the contribution from Phenolics at 45% (down from an average of 64% in 1HFY22).DN has maintained its highest ever utilization rate of 120% in the Phenolics business in 4QFY22, leaving limited growth in this segment from volume accretion. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Deepak Nitrite  - Margins Sustain Due to Higher Volumes and Realization

<p>DN reported a miss on our estimates. EBITDA came in 8% lower than our estimate at INR3.5b, while EBITDA margin, at 20.4%, was lower than our estimate of 25.1%, the lowest since 4QFY19. Phenolics continued its strong growth, with Basic Intermediates and the Performance Products segment performing well in 3QFY22. EBIT margin in the Fine and Specialty Chemicals fell for the fifth...</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

DN reported a miss on our estimates. EBITDA came in 8% lower than our estimate at INR3.5b, while EBITDA margin, at 20.4%, was lower than our estimate of 25.1%, the lowest since 4QFY19. Phenolics continued its strong growth, with Basic Intermediates and the Performance Products segment performing well in 3QFY22. EBIT margin in the Fine and Specialty Chemicals fell for the fifth...Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Margin continues to decline; demand remains strong

India

Deepak Nitrite is a leading Indian chemical manufacturing company. It produces a wide range of chemical intermediates, including basic chemicals, fine and specialty chemicals, and performance products, serving industries such as pharmaceuticals, agrochemicals, dyes, pigments, and textiles. The company is headquartered in Vadodara, Gujarat, and was founded in 1970.

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Deepak Nitrite (DN IN)

The Beat Ideas: What Makes Deepak Nitrite an Interesting Bet on Chemical Revival Theme

Deepak Nitrite investing heavily in capex for integration, entering newer domains, promoters increasing stake, and revival in key chemical spreads...

Sudarshan Bhandari

Archean Chemical Industries IPO - Strong Growth Makes It Worth a Shot

Archean Chemical Industries (0810406D IN) is looking to raise about US$178m in its India IPO. In this note, we will talk about the peer comparison...

Ethan Aw

Deepak Nitrite: Forensic Analysis

DN has emerged as one of the key players in the chemical intermediate industry. Key forensic takeaways include strong balance sheet position,...

Nitin Mangal

Deepak Nitrite - Margins Sustain Due to Higher Volumes and Realization

EBITDA came in 32% higher than our estimate at INR4.1b, while EBITDA margin, at 21.9%, was also higher than our estimate of 16.9% – albeit, at a...

Motilal Oswal

Margin continues to decline; demand remains strong

DN reported a miss on our estimates. EBITDA came in 8% lower than our estimate at INR3.5b, while EBITDA margin, at 20.4%, was lower than our...

Motilal Oswal

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

The Beat Ideas: What Makes Deepak Nitrite an Interesting Bet on Chemical Revival Theme

​Deepak Nitrite investing heavily in capex for integration, entering newer domains, promoters increasing stake, and revival in key chemical spreads...

Sudarshan Bhandari

Archean Chemical Industries IPO - Strong Growth Makes It Worth a Shot

Archean Chemical Industries (0810406D IN) is looking to raise about US$178m in its India IPO. In this note, we will talk about the peer comparison...

Ethan Aw

Deepak Nitrite: Forensic Analysis

DN has emerged as one of the key players in the chemical intermediate industry. Key forensic takeaways include strong balance sheet position,...

Nitin Mangal

Deepak Nitrite - Margins Sustain Due to Higher Volumes and Realization

EBITDA came in 32% higher than our estimate at INR4.1b, while EBITDA margin, at 21.9%, was also higher than our estimate of 16.9% – albeit, at a...

Motilal Oswal

Margin continues to decline; demand remains strong

DN reported a miss on our estimates. EBITDA came in 8% lower than our estimate at INR3.5b, while EBITDA margin, at 20.4%, was lower than our...

Motilal Oswal

Deepak Nitrite investing heavily in capex for integration, entering newer domains, promoters increasing stake, and revival in key chemical spreads...