Deepak Nitrite is a leading company engaged in the manufacture of organic, inorganic and fine chemicals. The management aims to generate revenue of Rs 6579 crore (USD 1bn) in the next 3-4 years. To achieve this, the company has come up with Rs 1,400-crore phenol-acetone facility at Dahej, Gujarat. This will aggregate its capacity of phenol to 2,00,000 MTPA and acetone capacity to 1,20,000 MTPA. The production is expected to commence from Q4FY18 and 70 per cent capacity would be utilized in FY19. The sale of fine and specialty chemicals has increased due to growing demand from various industries. We see that the company has huge opportunity to improve its margins through sale of specialty and pharma chemicals. Considering these factors, we recommend our readers to BUY this scrip.