DEEPAKFERT - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials

Earnings & Profitability: EPS of ₹33.9 and PAT of ₹86.8 Cr this quarter (down from ₹175 Cr) reflect a temporary dip, but YoY profit growth remains strong at 22%

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. ROCE at 14.9% and ROE at 12.3% are healthy, indicating decent capital efficiency.

Debt Profile: Debt-to-equity of 0.12 — low leverage, which supports financial stability and flexibility

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Cash Flow: Operating cash flows are robust, supported by consistent profitability and strategic product mix. Net income (TTM) stands at ₹944 Cr with revenue of ₹10,274 Cr

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💰 Valuation Indicators

Metric Value Insight

P/E Ratio 42.8 Elevated vs. industry PE (21.9), but justified by growth

P/B Ratio ~5.26 Premium over book value

PEG Ratio 1.51 Fairly valued relative to growth

Dividend Yield 0.69% Modest, but consistent payout

Valuation is slightly rich, but PEG ratio suggests it’s aligned with earnings trajectory

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🧪 Business Model & Competitive Advantage

Deepak Fertilisers and Petrochemicals Corp Ltd (DFPCL) operates across

Industrial Chemicals: Nitric acid, ammonia, methanol

Crop Nutrition: Fertilisers and specialty nutrients

Mining Chemicals: Technical ammonium nitrate (TAN)

Key strengths

Strategic shift toward specialty products and value-added chemicals

Long-term LNG regasification agreement with Petronet LNG to secure energy supply

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Strong export footprint and diversified revenue base

The company has delivered a 744% return over 5 years, with a 5-year CAGR of 148.86%

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. Analysts unanimously rate it a “Buy”.

📈 Technical & Sentiment Indicators

RSI: 49.6 – Neutral zone, suggesting consolidation.

MACD: -18.2 – Bearish crossover, indicating short-term weakness.

Volume Dip – Slightly below weekly average, signaling reduced momentum.

DMA 50 & 200: Price is hovering near DMA 50 and above DMA 200 — technically stable.

💡 Investment Strategy

🔽 Entry Zone

Ideal Buy Range: ₹1,400–₹1,430, near support and below DMA 50.

Current Price ₹1,452: Slightly above ideal entry, still reasonable for accumulation.

🕰️ Long-Term Holding

Hold or Accumulate on Dips: Strong fundamentals, low debt, and strategic expansion make Deepak Fertilisers a compelling long-term play.

Watch Earnings Volatility & Institutional Sentiment: Recent PAT dip and MACD weakness suggest short-term caution.

You can explore Deepak Fertilisers’ full financial overview

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or review its balance sheet health and debt profile

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for deeper insights. Let me know if you'd like a peer comparison with GNFC or Chambal Fertilisers.

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stockanalysis.com

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simplywall.st

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www.indmoney.com

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