Deepak Nitrite Ltd: Why Is It Outperforming Nifty 500?

Deepak Nitrite Ltd's latest quarterly results (Mar 2026) show

• PAT Growth YoY: +8.9% (turning around (inflection up))
• Revenue Growth YoY: -2.8%
• Operating Margin: 18.0% (volatile)

Deepak Nitrite Ltd's profit is growing with an turning around (inflection up) trend.

• PAT Growth YoY: +8.9% (latest quarter)
• PAT Growth QoQ: +120.0% (sequential)
• 3-Year PAT CAGR: -13.5%
• Trend: Turning around (inflection up) — consistent growth pattern

Deepak Nitrite Ltd's revenue growth trend is stable.

• Revenue Growth YoY: -2.8%
• Revenue Growth QoQ: +7.3% (sequential)
• 3-Year Revenue CAGR: -0.4%

Deepak Nitrite Ltd's operating margin is volatile.

• Current OPM: 18.0%
• OPM Change YoY: +3.0% basis points
• OPM Change QoQ: +7.0% basis points

Deepak Nitrite Ltd's long-term compounding rates

• 3-Year Profit CAGR: -13.5%
• 3-Year Revenue CAGR: -0.4%

Deepak Nitrite Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.

• YoY Acceleration: +6.9% bps
• Sequential Acceleration: +66.0% bps

Deepak Nitrite Ltd's trailing twelve month (TTM) performance

• TTM PAT: ₹551 Cr
• TTM PAT Growth: -20.9% YoY
• TTM Revenue: ₹8,000 Cr
• TTM Revenue Growth: -4.8% YoY
• TTM Operating Margin: 12.6%

Deepak Nitrite Ltd appears significantly overvalued based on our fair value analysis.

• Valuation Signal: Significantly Overvalued
• Current PE: 39.5x
• Price-to-Book: 3.8x

Deepak Nitrite Ltd's current PE ratio is 39.5x.

• Current PE: 39.5x
• Market Cap: 22.1K Cr
• Dividend Yield: 0.46%

Deepak Nitrite Ltd's current PE is 39.5x.

• Current PE: 39.5x
• Valuation Assessment: Significantly Overvalued

Deepak Nitrite Ltd's price-to-book ratio is 3.8x.

• Price-to-Book (P/B): 3.8x
• Book Value per Share: ₹428
• Current Price: ₹1622

Deepak Nitrite Ltd is rated Average with a fundamental score of 46.46/100. This score is calculated from objective financial metrics

• Revenue Growth YoY: -2.8% (10% weight)
• PAT Growth YoY: +8.9% (10% weight)
• PAT Growth QoQ: +120.0% (10% weight)
• Margins stable (10% weight)

Deepak Nitrite Ltd has a debt-to-equity ratio of N/A.

• Total Debt: ₹2,000 Cr

Deepak Nitrite Ltd's return ratios over recent years

• FY2024: ROCE 22.0%
• FY2025: ROCE 16.0%
• FY2026: ROCE 11.0%

Deepak Nitrite Ltd's operating cash flow is positive (FY2026).

• Cash from Operations (CFO): ₹539 Cr
• Free Cash Flow (FCF): ₹-130 Cr
• CFO/PAT Ratio: 98% (strong cash conversion)

Deepak Nitrite Ltd's current dividend yield is 0.46%.

• Dividend Yield: 0.46%
• Current Price: ₹1622

Deepak Nitrite Ltd's shareholding pattern (Mar 2026)

• Promoters: 49.3%
• FII (Foreign): 6.2%
• DII (Domestic): 23.5%
• Public: 21.0%

Deepak Nitrite Ltd's promoter holding has remained stable recently.

• Current Promoter Holding: 49.3% (Mar 2026)
• Previous Quarter: 49.3% (Dec 2025)
• Change: 0.00% (stable)

Deepak Nitrite Ltd has been outperforming Nifty 500 for 3 consecutive weeks, indicating early-stage outperformance.

Deepak Nitrite Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.

Based on quantitative research signals, here is why Deepak Nitrite Ltd may be worth studying

• Earnings growing at +8.9% YoY
• Cash flow is positive — CFO ₹539 Cr

Deepak Nitrite Ltd investment thesis summary:

Deepak Nitrite Ltd's forward outlook based on current data signals

• Earnings Trend: turning around (inflection up)
• Revenue Trend: stable
• Margin Trend: volatile
• Valuation: Significantly Overvalued