Deepak Nitrite Shares: Will A Break Above ₹1,800 Fuel A Rally?

Shares of Deepak Nitrite traded lower on Wednesday, weeks after the company reported weaker quarterly earnings, with the stock consolidating below resistance levels.

Technical View

SEBI-registered analyst Krishna Pathak said the stock is trading in a range, facing resistance near ₹1,800 and holding strong support around ₹1,658. 

He noted that the 9-week exponential moving average (EMA) at ₹1,800 is acting as a resistance level.

He highlighted an add-on accumulation opportunity in the ₹1,700–₹1,720 zone, where past buying interest was visible. Pathak noted that Deepak Nitrite's stock is hovering close to a major support level, a zone that could set the stage for a shift from a downtrend to an uptrend. 

He said a clear move above ₹1,800 might open the door to upside targets of ₹1,980, ₹2,071, and ₹2,155, but warned that slipping below ₹1,580 could trigger a deeper correction.

Q1 Print

The company's latest results showed pressure on both revenue and profitability. Net profit declined 44.6% to ₹112 crore from ₹202.5 crore in the same period last year. Revenue too dropped 12.8% to ₹1,889.8 crore from ₹2,166.8 crore on the back of weak demand and pricing pressure across most of its businesses.

Operating performance also weakened. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter were down 38.8% to ₹189.3 crore from ₹309.4 crore, and the margin contracted to 10% from 14.3%.

Results for both the core segments saw deterioration. Revenue from Advanced Intermediates fell 15% at ₹605.3 crore, and EBIT tumbled 47% to ₹35.5 crore. In the Phenolics division, revenue decreased 11% to ₹1,304 crore, and EBIT fell 43% to ₹117.9 crore.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'neutral' amid 'normal' message volume.

Deepak Nitrate's stock has declined nearly 30% so far in 2025.

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