The Hindu Business Line : Land sale talk lifts Deepak Nitrite

Dalal Street is expecting a turnaround for Deepak Nitirite, organic intermediaries manufacturer. The company reported Rs 13.91 crore loss in the first half of 2007-08. The results were impacted due to loss of production on account of disruption in supply of key raw materials — nitric acid and hydrogen, foreign exchange loss due to significant appreciation of rupee, and lower price realisations.

The stock surged on Thursday by about 13 per cent to finish at Rs 177, after touching its 52-week high at Rs 182. In the past one week the stock has moved up by a whooping 43 per cent on the hope of return to profits this fiscal.

Real estate surplus

The market grapevine also talked about a possibility of extraordinary earnings through sale of surplus real estate in Pune.

Mr Deepak Mehta, Managing Director of the company, did not respond to repeated Business Line calls to his office in Pune.

According to market sources, improvement in raw material availability, price realisation for its products in the international market, and better currency risk management coupled with smothered growth in rupee have had a positive effect on the performance of the company in the third quarter and enhanced chances of betterment in the fourth quarter too.

The stock attracted a traded quantity of 2.12 lakh shares on the BSE against its average volume in the last three months of 28.7 lakh shares.

Jayanta Mallick

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