dkishore
02-02-2008, 07:45 AM
Deepak Nitrite profit growth seen strong
When the market is in a freefall, it does not take much time for rerated candidates to get derated. Shares of Deepak Nitrite seems to be one such case. The stock, which had touched a high of Rs 208 in early January, closed at Rs 125 on Friday.
Brokers attribute the crash to overbought positions at the counter, which are still being unwound as the market began its slide a couple of weeks back. However, bargain hunters have begun mopping up the shares over the past few sessions, as they feel it is a good turnaround story. For the quarter ended December 31, 2007, Deepak Nitrite has reported a net profit after having been in the red for the previous couple of quarters.
According to analysts, the company is likely to report a PAT of Rs 20 crore during the current quarter. And with the threat of Chinese imports having subsided, the company is reportedly in a position to sell its product at competitive prices. This is likely to bring about a significant improvement in the company’s performance next year, say analysts.
When the market is in a freefall, it does not take much time for rerated candidates to get derated. Shares of Deepak Nitrite seems to be one such case. The stock, which had touched a high of Rs 208 in early January, closed at Rs 125 on Friday.
Brokers attribute the crash to overbought positions at the counter, which are still being unwound as the market began its slide a couple of weeks back. However, bargain hunters have begun mopping up the shares over the past few sessions, as they feel it is a good turnaround story. For the quarter ended December 31, 2007, Deepak Nitrite has reported a net profit after having been in the red for the previous couple of quarters.
According to analysts, the company is likely to report a PAT of Rs 20 crore during the current quarter. And with the threat of Chinese imports having subsided, the company is reportedly in a position to sell its product at competitive prices. This is likely to bring about a significant improvement in the company’s performance next year, say analysts.