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    JM Financial sees up to 36% upside in this chemical stock

    Synopsis

    For the quarter ended June 30, 2022, the company reported a consolidated total income of Rs 2,067.60 crore, up 10.22 per cent from last quarter's total income of Rs 1,875.89 crore and up 34.74 per cent from last year's same quarter's total income of Rs 1,534.47 crore. The company has reported a net profit after tax of Rs 234.62 crore in the latest quarter.

    JM Financial sees up to 36% upside in this chemical stockAgencies
    Brokerage firm JM Financial maintained a buy rating on Deepak Nitrite with a target price of Rs 2,895, a potential upside of nearly 36 per cent from the current market price of Rs 2,127.

    At 3.01 pm, the stock was trading 4.64 per cent lower at Rs 2,127 over the last day’s closing of Rs 2,230.45 a piece. The stock has surged about 670 per cent in the last three years, while it has increased nearly 15 per cent in the three months.

    The phenol-acetone spread over benzene-propylene has started to move up of late. JM Financial believes this to be because of a sharp correction in propylene prices due to lacklustre downstream demand for propylene derivatives, a decline in benzene prices, a drop in crude prices, a rise in phenol prices, an increase in downstream demand and supply shortages of Bisphenol-A (BPA).

    Besides this, Europe accounts for 18-20 per cent of global phenol production and with the current surge in European natural gas and electricity prices, European phenol production is unlikely to be competitive against other regions. Hence, we expect the phenol-acetone spread to continue its upwards trajectory in 2HFY23, the brokerage said.

    This is favourable for Deepak Nitrite, given it derives 55 per cent of EBIT from the phenolics business. We maintain buy with an unchanged Sep 2023 target price of Rs 2,895 per share, the brokerage added.

    For the quarter ended June 30, 2022, the company reported a consolidated total income of Rs 2,067.60 crore, up 10.22 per cent from last quarter's total income of Rs 1,875.89 crore and up 34.74 per cent from last year's same quarter's total income of Rs 1,534.47 crore. The company has reported a net profit after tax of Rs 234.62 crore in the latest quarter.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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