Deepak Nitrite surges 4.8% after double upgrade from Morgan Stanley
The brokerage said Deepak Nitrite is in the midst of its largest investment cycle, transitioning into India's largest, integrated phenolics producer.
Mumbai: Shares of surged 4.8% after gave a 'double-upgrade' in its rating on the stock to overweight. The brokerage set a price target of ₹2,985 on the stock, implying an upside of about 16% over its Monday closing price of ₹2,560.5.The brokerage said is in the midst of its largest , transitioning into India's largest, integrated .
"Growth investments across India's are viewed favorably by investors and the market has significantly re-rated DPNT (Deepak Nitrite) in the past, 12-18 months prior, in anticipation of a ," said Morgan Stanley analysts Vivek Rajamani, Mayank Maheshwari and Pranitha Shetty in a client note.
Agencies"In coming quarters, we expect incremental clarity on these investments, while start up of , capacity debottlenecks and backward integration initiatives and in the underpin the next leg in DPNT's journey."
Morgan Stanley said Deepak Nitrite's new (largest yet) investment cycle could drive the next leg of re-rating, similar to the five times 'value creation' seen in 2016-19. "Coinciding with this capex cycle is a bottoming of the base business, operational and volume enhancements and a strong balance sheet."
Source: Stocks-Markets-Economic Times
