The stock has lost more than 50% from its peak of ₹3,169 reached on 1 August 2024. However, the stock trades at a price-to-earnings (P/E) multiple of 26x based on Bloomberg consensus FY27 EPS, which is expensive given the company’s commodity nature of business. A P/E re-rating is unlikely, as Deepak Nitrite’s earnings growth is generally lumpy and more correlated with capital expenditure-led volume growth than with margin-led growth driven by pricing power.