The chemical industry is a vital sector in India, contributing significantly to the nation’s GDP, manufacturing output, and exports. We also analyze the market’s performance on Monday to understand what may lie ahead for the stock indices in the coming days.
Two stocks to buy today, recommended by Trade Brains Portal
Deepak Nitrite Ltd – Current price: ₹ 1,965
- Target price: ₹ 2,460 in 12 months
- Stop-loss: ₹ 1,717
- Why it’s recommended: Founded in 1970, Deepak Nitrite Ltd. is a prominent producer of chemical intermediates, offering a wide range of goods to the agrochemical, pharmaceutical, plastics, textile, paper, and home personal care industries in India and overseas, including phenolics, acetone, dyes & pigments, and IPA. The company sells its products to over 45 countries on six continents through eight manufacturing facilities spread across five key locations and two project sites presently under construction. The company has more than 1,000 customers, more than 34 products, and more than 56 applications as of FY25.
The company has reported resilient performance in FY25 with a total income of ₹8,365.79 crore, up by 8% from ₹7,757.93 crore in the previous year. EBITDA stood at ₹1,176 crore with an EBITDA margin of 14.2%. With several new steps into increasing innovation, by Q2 of FY26, the company hopes to have its new, top-notch R&D unit in Savli, Vadodara, operational after investing between ₹100 and ₹115 crore. The company anticipates commissioning the downstream acetone derivatives, MIBK and MIBC, by the second part of FY26. To promote digitalization throughout the company, DNL has deployed the SAP S4 HANA ERP system in addition to a number of other innovative technological platforms.
Looking forward, the company is anticipated to spend between ₹1,200 and ₹1,500 crore on cash capital expenditures in FY26. In sectors like polycarbonate and nitric acid, the investments are in line with well-coordinated strategies that incorporate both forward and backward integration. Additionally, its subsidiary Deepak Chem Tech Limited is prepared to invest ₹14,000 crore over the next three to four years in the production of innovative chemicals for the materials industry, thanks to strong relationships with the Gujarat government.
Additionally, DNL is developing new platforms for fluorination, cyanation, and other processes as it ventures into new product frontiers such as chemicals, bisphenol A, polycarbonate, and MMA. In addition to high-impact industrial solvents and energy applications, the new products will cater to consumers in the pharmaceutical and personal care sectors. The CNA & WNA factory for nitric acid is one of four projects the business plans to commission in Q2 FY26. These initiatives will improve upstream integration, reduce costs, raise sustainability, and expand value chain participation.
- Risk Factor: Large capital investment projects, such as capacity expansions and new product lines, are being undertaken by Deepak Nitrite. These projects’ size and complexity put the business at risk for execution issues like delays, overspending, and integration problems. Furthermore, China’s excess supply and poor demand have resulted in persistent pricing pressure on Deepak Nitrite, especially in agrochemical intermediates. Lower sales realizations and decreased profitability are the results of this. Pressure has been placed on the industry by recent rises in US tariffs on Indian chemical imports, which went from 3.5% to 27%.
Titan Company Ltd- Current price: ₹ 3,400
- Target price: ₹ 3,950 in 12 months
- Stop-loss: ₹ 3,125
- Why it’s recommended: Established in 1984 as a joint venture between the Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO), Titan Company Ltd. has remained a frontrunner in the lifestyle industry, building a strong and diverse portfolio of iconic brands across watches & wearables, eye care, fragrances & women’s bags, and Indian dresswear. The company’s physical footprints are spread across 435 towns with 3,312 stores comprising 47 lakh sq. ft of retail area, and it has 11 manufacturing and assembly facilities across the country.
The company crossed ₹50,000 crore in revenues. For the full year FY25, the company reported revenue from operations of ₹60,456 crore, which grew 18.34% over FY24. The EBIT grew 5% to ₹5,488 crore, and the PBT declined by 2% to ₹4,535 crore, mainly due to the impact of customs duty reduction on gold during the year. The analog watch business continued its strong growth trajectory by product innovation, whereas the EyeCare business has returned to the double-digit growth trajectory in the third and fourth quarters of Financial Year 2024-25 and is poised for even better growth in Financial Year 2025-26.
Going forward, the company plans to open 40-50 new stores in Tanishq and is looking at renovating or relocating 50-60 existing stores in the next 18 months. Their Jewellery Division has tied up with international diamond supplier De Beers to jointly educate customers, co-promote Tanishq Diamonds, and reduce confusion amongst customers between natural and lab-grown/synthetic diamonds. The company is targeting revenue growth of 15-20% this year and plans toscale the international business to $300 million in revenue in FY26.
- Risk Factor: The jewelry sales are influenced by seasonal factors such as festivals and auspicious days; also, fluctuations in gold prices directly affect consumer demand, working capital requirements, and profitability. Moreover, the Indian jewelry retail industry is highly fragmented, with significant competition from both organized and unorganized players. Increased competition can impact Titan’s market share and margins, despite its strong brand equity.
Market Recap
Following a bearish trend throughout Monday’s trading hours, the Indian markets opened at 25,149.50, unchanged from the previous day’s closing of 25,149.85. The Nifty 50 fell as low as 25,001.95 during the day. Similar to this, the BSE Sensex opened at 82,537.87 and dropped as low as 82,010.38 during the day. With an RSI of 46.66, the Nifty 50 closed at 25,082.30, down 67.55 points, or 0.27%. It is still above the 50/100/200 in the daily time frame but below the 20-day EMA. In contrast, the BSE Sensex closed below the 20-day EMA but above the 50/100/200 in the daily time frame, finishing at 82,253.46, down -247.01 points, or -0.30%, with an RSI of 46.31.
Sectoral indexes displayed mixed indications on Monday. One of the biggest gainers was the Nifty Realty index, which ended the day at 976.25, up 13.35 points, or 1.39%. Stocks such as Brigade Enterprises, Godrej Properties, and Sobha Ltd. increased by more than 2%. Nifty Media was also among the top gainers, which ended the day at 1,727.50, up 23.20 points, or 1.36%. Zee Entertainment, Dish TV, and Network 18 Media were among the stocks that had a 4% increase. With Neuland Laboratories up 18.27%, Piramal Enterprises up 6.23%, and Laurus Lab up 4.26%, the Nifty Smallcap 50 also increased by 1.14%, or 102.90 points, to conclude at 9,164.20.
At 37,273.70, the Nifty IT index was one of the biggest losers, down −419.55 points, or −1.11%. Additionally, it has been declining steadily for the past three trading sessions, consistently dropping below the 20/50/100/200-day EMAs. The RSI suffered as well, dropping to a monthly low of 37.20. Tech Mahindra, Wipro, Infosys, and TCS were the index’s biggest laggards, dropping more than 1% on Monday.
On Monday, however, Asian markets displayed a bullish trend. Hong Kong’s Hang Seng index closed at 24,203.32, up 0.26%, or 63.75 points. In addition, the Shanghai index of China increased 9.47 points, or 0.27%, to close at 3,519.65. The Kospi index for South Korea ended the day at 3202.03, up 0.82%, or 26.26 points. The Thailand SET composite closed at 1,143.31, up 22.18 points, or 1.94%. The Indonesian Jakarta Composite closed at 7,097.15 points, up 49.71 points, or 0.70%. Japan’s Nikkei 225, meanwhile, closed at 39,459.62, down -110.06 points, or -0.28%.
Dow Jones Futures fell -124.46 points, or -0.28%, to 44,247.05 on Monday in the United States.
Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
