Multibagger stock Deepak Nitrite gives a massive 11,876% return in 10 years. Should you invest in this share?

Multibagger stock Deepak Nitrite turns 119 times the initial investment in 10 years!

Multibagger stock Deepak Nitrite gives a massive return in 10 years

Deepak Nitrite, founded in 1970, is a chemical manufacturing company with a turnover of more than Rs 4,000 crores. The net profit of the company is more than Rs 600 crores. The market capitalization of the company is Rs 27,740 crores. The manufacturing facilities of the company are located in Gujarat, Maharashtra and Telangana. The company produces agrochemicals, speciality chemicals, pharmaceuticals, rubber, colourants, etc. Deepak Mehta is the chairman of the company, and his son Mr Maulik Mehta is the CEO. 

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Stock price of Deepak Nitrite

The stock has been a consistent performer, and the stock has returned 18.28% in the last month. The return in the last 6 months has been 13.42%. Also, the return YTD is -19.61%. The one-year return is -3.51%. The 5-year return is 1,296.5%. The 10-year return is 11,876%. Although the stock has not performed well in the last one year, it has been a multibagger in the past, and this might be a good opportunity to invest in the stock. The year 2022 has been volatile for the stock markets, and this is giving an opportunity for investors to invest at fair prices.

In the first quarter of this financial year, the company reported a revenue of Rs 2,058 crores vs Rs 1,526 crores last year in the same quarter. The revenue was up 35% YOY. But the net profit of the firm was down 22.5% at Rs 235 crores vs Rs 303 crores YOY. EBIDTA has declined 21% to come in at Rs 356 crores vs Rs 452 crores YOY. The EBIDTA margin has declined from 30% to 17.3% YOY. This decline in the net profit, EBIDTA, and EBIDTA margins is putting pressure on the stock in the short term. But if you are convinced of the long-term story of the stock, you should invest in the company for the long term.

Related: Types of Returns: Absolute Return, Rolling Return, IRR, XIRR, CAGR

The stock of Deepak Nitrite has been a multibagger in the past, with a massive 119 times return in the last 10 years. The recent underperformance of the stock is because of the general volatility in the stock markets and weak quarterly performance. If you are convinced about the long-term growth prospects of the company, you should invest in the stock of the company.

Related: 5 common investing mistakes that can hamper your return

Video to be embedded: Deepak Nitrite Result Q1FY23: Revenues ₹2058Cr Vs ₹1526 Cr Up 35% YoY; Profits down 12%

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.


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