Famous chemical manufacturer, Deepak Nitrite witnessed five major chemical blasts at its manufacturing facility in Vadodara on June 2. The company’s shares have fallen almost 13% in the last five trading sessions amid the news of reports of the Gujarat government issuing a closure notice to the company upon the incident.
The shares of the company touched their 52-week low of ₹1700 during Thursday’s early trades and currently trading at ₹1830.75 and are up by 2.50% as of IST 10:55, Friday.
Although the shares witnessed a downfall recently, they have given multi-bagger returns of 1,033% over the past five years. The shares achieved their all-time high of ₹3020 on 19th October 2021 and are currently trading at a discount of 39% from their all-time high.
The daily RSI indicator for the share is at 38 points, which indicates the share is almost near its oversold zone. The Share is also trading below its 20, 50, 100, and 200 days EMA.
During the fourth quarter of 2021-22, the company has earned a consolidated net profit of ₹267 crores as compared to the consolidated net profit in the corresponding quarter of 2020-21 which was ₹290 crores. The company experienced in decline in its profits due to a sharp increase in its input costs.
SC Bamania, joint director, Industrial Safety & Health stated “Deepak Nitrite management will have to submit certificates related to the structural stability of buildings at the plant post fire incident apart from other safety aspects. The company would require an audit from competent persons. Once the company submits necessary documents related to safety, a team of experts from DISH authority will conduct a plant inspection and if the team feels the plant is safe for the workers, the closure notice will be withdrawn.”
The company has disclosed on its official website that, all the properties at the plant are covered by their insurance. The cause of the fire is being investigated by the company and they have pledged to assist all relevant authorities in their investigations. The company expects the operations at the Nandesari facility to resume soon in a phased manner.
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