Multibagger chemical stock Deepak Nitrite down sharply today after fire incident at plant
2 min read 03 Jun 2022, 02:12 PM ISTMultibagger stock: Deepak Nitrite share price today opened with downside gap and went on to hit intraday low of ₹1931.30 per share levels, losing over 5 per cent from its Thursday close of ₹2045.80 apiece on NSE
PremiumMultibagger stock: Deepak Nitrite share price rally took a pause today after rising for five successive previous sessions. One of the biggest multibagger stocks in chemical space today opened with downside gap and went on to hit intraday low of ₹1931.30 per share levels, losing over 5 per cent from its Thursday close of ₹2045.80 apiece on NSE.
According to market experts, this pause in Deepak Nitrite shares price rally is because of the fire breakout around warehouse section of the company's manufacturing site located at Nandesari, District Vadodara, in the State of Gujarat. the company also informed Indian bourses about the incident and said that the fire took place around 6:00 PM on Thursday. They said that slide in Deepak Nitrite shares c an be attributed to this negative sentiment only. However, they said that the plant that has got hit manufactures intermediary chemical products and main products of the company is manufactured at other company's plants.
Speaking on the immediate reason for slide in Deepak Nitrite shares, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Deepak Nitrite share price is sliding today due to the fire breakout in in its Vadodara plant. Though, the company has came forward and said that they are assessing the damage and other losses, market has gone negative on the stock. Exact reality will become clear in next few days."
However, Saurabh Jain, Vice President — Research at SMC Global Securities said, "As per the company's communication , fire has broken out in the warehouse of the company and the plant at Vadodara manufacturers chemical intermediaries. So, this can be a relief for the company as their major chemical products are manufactured at other plants. However, company has promised that they will come clear on the change in fundamentals of the company in few days and till then we should wait for the company's statement."
Informing about the fire break out in the ware house of its Vadodara plant, Deepak Nitrite management said, "Our emergency response team, with the support of local authorities and companies around Deepak Nitrite Limited brought the fire under control within couple of hours. There has been no casualty and few people are being given first aid treatment. The Company has kept all concerned authorities informed and the Plant operations are expected to resume in a day or two upon clearance of damaged warehouse. The cause of fire is being investigated and the Company is committed to extend all assistance to the relevant authorities investigating into this matter."
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