Why Shares Of Deepak Nitrite And Hindustan Organic Are Rallying
Shares of Deepak Nitrite Ltd. and Hindustan Organic Chemicals Ltd. rallied after the chemical makers filed an application for sunset review of the anti-dumping duty imposed on imports of phenol.
The companies have alleged likelihood of continuation or recurrence of dumping of phenol from Singapore and the European Union and consequent injury to the domestic industry, a Commerce Ministry notification said. “...and have requested for review and continuation of the anti-dumping duty imposed on the imports of phenol originating in or exported from the subject countries.”
Authorities had initiated the original investigation concerning imports of phenol originating in or exported from the European Union, South Korea and Singapore in October 2014. The final findings, dated January 2016, recommended imposition of a definitive anti-dumping duty on imports from these countries. The Department of Revenue had imposed definitive anti-dumping duties in March 2016.
“As per available information, production of the applicants accounts for a major proportion in the domestic production of phenol in the country,” the ministry’s notification said. “The applicants have claimed that they neither have imported the PUC (product under consideration) from the subject countries in the period of investigation, nor they are related to any exporter or producer of PUC in the subject countries or any importer of the PUC in India,” it said.
Shares of Deepak Nitrite gained as much as 4.3% to a record high of Rs 982.8 apiece. The stock is up for the eighth straight day, its longest winning streak since August 2017. All the seven analysts tracking the stock recommend a ‘buy’. The stock is trading 5.5% higher than its 12-month Bloomberg consensus price target of Rs 919.5 apiece.
Shares of Hindustan Organics gained as much as 20% to Rs 23.05 apiece—the highest since June 2019.