DEEPAKFERT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | DEEPAKFERT | Market Cap | 15,972 Cr. | Current Price | 1,265 ₹ | High / Low | 1,779 ₹ |
| Stock P/E | 49.6 | Book Value | 274 ₹ | Dividend Yield | 0.79 % | ROCE | 14.9 % |
| ROE | 12.3 % | Face Value | 10.0 ₹ | DMA 50 | 1,106 ₹ | DMA 200 | 1,202 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.07 % | PAT Qtr | 10.8 Cr. | PAT Prev Qtr | 50.0 Cr. |
| RSI | 67.6 | MACD | 68.1 | Volume | 6,70,102 | Avg Vol 1Wk | 3,84,128 |
| Low price | 865 ₹ | High price | 1,779 ₹ | PEG Ratio | 1.75 | Debt to equity | 0.13 |
| 52w Index | 43.8 % | Qtr Profit Var | -83.9 % | EPS | 25.5 ₹ | Industry PE | 19.0 |
📊 Deepak Fertilizers (DEEPAKFERT) shows modest fundamentals with ROE (12.3%) and ROCE (14.9%), supported by low debt-to-equity (0.13). EPS of ₹25.5 provides earnings visibility, and dividend yield of 0.79% adds shareholder value. However, quarterly PAT dropped sharply (50 Cr → 10.8 Cr, -83.9%), raising concerns about earnings volatility. Valuation is stretched with P/E (49.6) compared to industry average (19.0), while PEG ratio (1.75) suggests growth is already priced in. Technicals remain bullish with RSI (67.6), MACD (68.1), and strong volume, but price is near resistance levels.
🎯 Entry Zone: 1,230 ₹ – 1,250 ₹ (near DMA support)
📌 Long-Term Holding: Suitable for cautious accumulation. Strong technical momentum supports near-term upside, but weak earnings and stretched valuations limit long-term compounding potential.
Positive
- Price trading above both 50 DMA and 200 DMA confirms bullish bias.
- Strong volume participation supports momentum.
- Low debt-to-equity (0.13) ensures financial stability.
- Dividend yield of 0.79% adds investor returns.
Limitation
- High P/E (49.6) compared to industry average (19.0).
- Quarterly PAT decline (-83.9%) highlights earnings weakness.
- PEG ratio (1.75) indicates growth is already priced in.
- RSI nearing overbought levels signals risk of short-term correction.
Company Negative News
- Sharp quarterly profit decline raises concerns about earnings stability.
- No significant institutional inflows; FII holding unchanged, DII marginal (+0.07%).
Company Positive News
- Strong technical momentum supported by volume surge.
- Stable fundamentals with low debt and consistent dividend payout.
Industry
- Industry P/E at 19.0 is much lower than DEEPAKFERT’s 49.6, suggesting relative overvaluation.
- Fertilizer and chemicals sector remains cyclical, influenced by commodity prices and demand trends.
Conclusion
⚠️ DEEPAKFERT is trending upward with strong technical momentum, supported by volume and price strength. Entry near 1,230–1,250 ₹ offers favorable positioning, with exits around 1,280–1,300 ₹. However, sharp earnings decline and stretched valuations warrant cautious accumulation, with strict stop-loss management near 1,220 ₹.
This structured HTML report captures Deepak Fertilizers’ strong technical momentum but highlights its earnings volatility and valuation risks. If you’d like, I can extend this into a peer benchmarking overlay against other fertilizer and chemical companies to show relative positioning. Would you like me to prepare that next?