DEEPAKFERT - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: Deepak Fertilisers and Petrochemicals Corp Ltd (DEEPAKFERT) Fundamental Rating: 4.0

🧾 Core Financial Health

Profit Performance

EPS: ₹77.7 ➜ impressive profitability per share

PAT Qtr: ₹243 Cr vs ₹277 Cr ➜ minor dip, but strong overall

Qtr Profit Variation: +24.4% YoY ➜ solid growth momentum

Efficiency Metrics

ROE & ROCE: 16.0% ➜ respectable performance for a capital-intensive sector

Leverage & Dividends

Debt-to-equity: 0.67 ➜ moderate leverage — worth watching

Dividend Yield: 0.53% ➜ not a yield play, but consistent payouts

💡 Insight: Financials suggest stability with growth levers intact — strong EPS offsets slight PAT contraction.

💸 Valuation Metrics

Metric Value Insight

P/E Ratio 20.7 below industry average (27.2) ➜ undervalued

P/B Ratio ~3.25 (₹1,607 / ₹494) ➜ reasonable pricing to book

PEG Ratio 1.76 suggests fair valuation assuming steady growth

📌 Verdict: Fair valuation — not cheap, but not overheated. PEG leans on optimistic growth continuity.

🏭 Business Model & Competitive Edge

Core Segments

Fertilisers (ammonium nitrate, NPK)

Industrial chemicals & mining chemicals

Strengths

Backward integration in manufacturing

Government push toward agriculture support

Strong hold in mining chemical niche

Risks

Volatile raw material costs (gas, ammonia)

Regulatory price interventions

📈 Institutional Moves

FII ↑ 0.52%, DII ↑ 0.94% ➜ sentiment is building bullish momentum

📉 Technical Analysis

RSI: 53.2 ➜ neutral zone — no extreme trend

MACD: +0.86 ➜ mild bullish sentiment — strength building

Price above DMA 50 & DMA 200 ➜ technicals favor uptrend support

✅ Suggested Entry Zone: ₹1,510–₹1,570 🎯 Consider staged entries closer to ₹1,530 on dips — strong support near 50 DMA level

📅 Long-Term Investment Outlook

🧠 Suitable for

Investors seeking agri and infra-linked cyclical plays

Looking for earnings visibility with institutional confidence

🔍 Monitor

Capacity expansions and export trends

Input cost inflation & subsidy clarity

Product diversification across industrial uses

If you'd like to stack it against peers like Chambal Fertilisers or Coromandel, I can line those up for you. Or we can spot early plays in the agri-chem boom. Say the word.

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