Deepak Nitrate :- Deepak Chem Tech Limited signs Rs. 9000 crores MoU
with Government of Gujarat (GoG)
• Early adopter of Make in India, Deepak Group takes another step in realizing the
goal of making India self-reliant in Responsible Chemistry
• The Company had expressed intent to invest in the state during the Vibrant Gujarat
Global Summit 2024 held on January 10-12, 2024, under the auspices of the Honorable
Prime Minister Shri Narendra Modi
• Towards this, DCTL has signed an MoU to invest around Rs. 9000 crores across
projects with proposed year of commencement in 2027
• Polycarbonate Resins & Compounds, Methyl methacrylate (MMA) and Poly Methyl
Methacrylate (PMMA) Resins & Compounds and Aniline to be manufactured at Dahej
in Gujarat by Deepak Chem Tech Limited (DCTL)
• About 1300 direct and indirect employment opportunities will be created
• The proposed investment will also help reduce India’s import bill…
Earlier in May 2023, the Company had signed a Rs 5000 cr. MoU with GoG for manufacturing Specialty
Chemicals- Acetone, Phenol and Bisphenol.
Q3 FY 2023-24 Quarterly Results
Financial
https://www.bseindia.com/xml-data/corpfiling/AttachLive/b957fc84-7ce5-4387-bae0-e63f28ae3701.pdf
Interesting developments, let me try to create a best case scenario for this.
Current Asset Turnover ~1.67
Assuming Deepak Nitrite will reach this number eventually with the current capex, total potential revenue ~ 24k + 7k (current). Does this mean it has potential to become > 4x revenue from here?
Looking at this hypothetical scenario, the current valuation seems cheap!
Key item is (if and) when does all this comes to fruition, would be interesting to see if the management has more color to add.
Invested.
Are MoUs legally binding? My understanding is that the Government can anytime withdraw the deal unless a clear contract is signed.
Deepak Chem Tech Limited (“DCTL”), a wholly owned subsidiary, has commenced manufacturing operations of its state-of-the-art Fluorination Plant today i.e. 21" March, 2024 at Dahej, Dist. Bharuch in
Gujarat for manufacturing Benzo Trifluoride (BTF).
Recently, DCTL also commenced operations in a manufacturing unit at Sankarda near
Vadodara in Gujarat. The said unit at Sankarda has commenced production of speciality salts
for niche application in chemicals and petrochemicals industry.
