Deepak Nitrite share price tanks over 14% to hit 52-week low after Q3 results? Should you buy on dips or sell?

Deepak Nitrite share price plunged over 14% on Friday after the company reported weak Q3 results. Deepak Nitrite shares declined as much as 14.10% to a fresh 52-week low of ₹1,921.40 apiece on the BSE.

The chemical company Deepak Nitrite reported a sharp fall of 51.5% in its consolidated net profit for the third quarter of FY25 to ₹98.09 crore from ₹202.05 crore in the year-ago quarter.

The company’s consolidated revenue from operations in Q3FY25 declined 5.3% to ₹1,903.40 crore from ₹2,009.23 crore in the corresponding period of last fiscal year.

At the operational level, earnings before interest, tax, depreciation and amortization (EBITDA) in the December quarter plunged 44.7% to ₹168.5 crore from ₹304.6 crore, year-on-year (YoY), dragged by higher costs and lower realizations.

EBITDA margin in the quarter ended December 2024 contracted to 8.9% from 15.2%, YoY.

“On a broader industry level, there are initial signs of improved demand from international customers while domestic customers are expected to follow from the fourth quarter onwards leading to normalisation of demand patterns. Certain intermediates which witnessed transient feedstock increase are expected to witness margin expansion as raw material prices which were elevated are expected to ease,” Deepak Nitrite said in its investor presentation.

Should you buy Deepak Nitrite shares after Q3 results?

Deepak Nitrite share price has seen a sharp correction as the chemical stock has fallen 16.5% in one month and nearly 22% year-to-date (YTD). Over the past six months, Deepak Nitrite stock price has declined 31% and has fallen over 13% in one year.

On the technical front, Milan Vaishnav, CMT, MSTA, founder of Gemstone Equity Research & Advisory Services expects Deepak Nitrite share price to see a rebound.

“Deepak Nitrite stock seems to be in oversold territory on the daily and weekly timeframe charts. A technical rebound is overdue in the stock. Traders should wait for the downside to stabilise and utilise the technical rebound to move out or sell Deepak Nitrite shares,” Vaishnav said.

At 10:35 AM, Deepak Nitrite shares were trading 13.94% lower at ₹1,925.00 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.