⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DEEPAKFERT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | DEEPAKFERT | Market Cap | 11,893 Cr. | Current Price | 943 ₹ | High / Low | 1,779 ₹ |
| Stock P/E | 36.9 | Book Value | 274 ₹ | Dividend Yield | 1.06 % | ROCE | 14.9 % |
| ROE | 12.3 % | Face Value | 10.0 ₹ | DMA 50 | 1,054 ₹ | DMA 200 | 1,233 ₹ |
| Chg in FII Hold | -0.63 % | Chg in DII Hold | 0.56 % | PAT Qtr | 10.8 Cr. | PAT Prev Qtr | 50.0 Cr. |
| RSI | 40.8 | MACD | -33.8 | Volume | 4,19,558 | Avg Vol 1Wk | 3,65,193 |
| Low price | 901 ₹ | High price | 1,779 ₹ | PEG Ratio | 1.30 | Debt to equity | 0.13 |
| 52w Index | 4.74 % | Qtr Profit Var | -83.9 % | EPS | 25.5 ₹ | Industry PE | 16.5 |
📊 Core Financials
- Revenue Growth: PAT dropped sharply (₹10.8 Cr vs ₹50.0 Cr), showing earnings pressure
- Profit Margins: EPS ₹25.5, moderate but declining
- Debt Ratio: Low leverage (Debt-to-Equity 0.13)
- Cash Flows: Stable due to diversified operations
- Return Metrics: ROCE 14.9%, ROE 12.3% — modest efficiency
💹 Valuation Indicators
- P/E Ratio: 36.9 (above industry PE of 16.5, overvalued)
- P/B Ratio: ~3.44 (premium valuation)
- PEG Ratio: 1.30 (reasonable, growth moderately priced)
- Intrinsic Value: Current price ₹943 is near support (₹901), offering cautious entry
🏢 Business Model & Competitive Advantage
- Diversified chemical and fertilizer company with strong domestic presence
- Low debt enhances financial resilience
- Dividend yield of 1.06% adds shareholder value
- Competitive advantage in industrial chemicals and fertilizers
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹910–₹960 range (near support levels)
- Long-Term Holding: Suitable for cautious investors seeking chemical sector exposure
- Risk: Weak quarterly earnings and premium valuation may limit upside
✅ Positive
- Low debt ensures financial stability
- Diversified operations across chemicals and fertilizers
- Dividend yield provides steady income
⚠️ Limitation
- P/E ratio significantly higher than industry average
- Quarterly PAT dropped by -83.9%, showing earnings volatility
- Stock trading below DMA 50 & DMA 200, showing weak momentum
📰 Company Negative News
- Decline in FII holdings (-0.63%) shows reduced foreign investor confidence
- PAT dropped sharply from ₹50 Cr to ₹10.8 Cr
🌟 Company Positive News
- DII holdings increased (+0.56%), showing domestic investor support
- Debt-to-equity ratio at 0.13, indicating manageable leverage
🏦 Industry
- Chemicals and fertilizers sector with cyclical demand
- Industry PE at 16.5, DEEPAKFERT trades above this, showing premium valuation
- Sector growth supported by agriculture and industrial demand
🔎 Conclusion
- DEEPAKFERT offers stability with low debt and diversified operations
- Valuation is expensive compared to industry peers
- Entry near ₹910–₹960 is favorable only for cautious long-term investors
- Best suited for portfolios seeking chemical sector exposure with moderate risk tolerance