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Deepak Nitrite reputed chemical company with a wide product basket. Its subsidiary Deepak Phenolics is India’ largest and only manufacturer of phenol in the country. Increased environment oversight in China, the world’s largest chemical exporter, has resulted in lower exports and higher realizations and that benefited Indian chemical companies such as Deepak Nitrite. We expect this trend to continue particularly in a post covid world as consumers move away from China as sole supplier. We have a positive outlook and over weight rating due to reasonable valuations and steady growth and good prospects of its subsidiary Deepak Phenolics. Fall in end product prices and catching up of base of earlier quarters is the key risk for the company – 19-08-2020 Price : 614.70 Rating: Over Weight Recommendation : Buy

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