DEEPAKNTR - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 2.8

📊 Core Financials

• Revenue & Profitability: PAT rose to 112 Cr. from 30.3 Cr. sequentially, but YoY profit variation is -21.5%.
• Margins: ROE at 8.22% and ROCE at 10.1% reflect weak efficiency compared to peers.
• Debt Ratios: Debt-to-equity at 0.01 — virtually debt-free, ensuring financial stability.
• Cash Flows: Dividend yield of 0.46% provides limited shareholder returns.

💹 Valuation Indicators

• P/E Ratio: 107 vs Industry PE of 26.6 — extremely overvalued.
• P/B Ratio: Current Price 1,666 ₹ / Book Value 232 ₹ ≈ 7.2, premium valuation.
• PEG Ratio: -5.42 — negative due to declining earnings growth, signaling caution.
• Intrinsic Value: Current valuation unjustified given weak profitability and return ratios.

🏢 Business Model & Competitive Advantage

• Operates in specialty chemicals, catering to diverse industries including pharmaceuticals and agrochemicals.
• Competitive advantage lies in product diversification and global client base, but profitability is under pressure.
• Institutional sentiment mixed: FII holdings reduced (-0.47%), while DII holdings increased (+0.09%).

📈 Technical & Entry Zone

• DMA 50: 1,655 ₹ | DMA 200: 1,883 ₹ — stock trading below long-term average, showing weakness.
• RSI: 44.9 — neutral zone, not overbought.
• MACD: -30.0 — bearish momentum persists.
• Entry Zone: Attractive near 1,500–1,550 ₹ for accumulation.
• Long-Term Holding: Risky unless profitability improves and valuations normalize.

✅ Positive

• Debt-free balance sheet (Debt-to-equity 0.01).
• Sequential PAT growth from 30.3 Cr. to 112 Cr.
• DII holdings increased (+0.09%), showing slight domestic institutional support.

⚠️ Limitation

• Extremely high P/E ratio (107) compared to industry average.
• Weak ROE (8.22%) and ROCE (10.1%).
• Dividend yield of 0.46% offers limited shareholder returns.

📉 Company Negative News

• Quarterly profit variation -21.5% YoY indicates earnings pressure.
• FII holdings reduced (-0.47%), showing weaker foreign investor sentiment.

📈 Company Positive News

• Sequential PAT growth shows operational recovery.
• DII holdings increased (+0.09%), reflecting domestic institutional confidence.

🏭 Industry

• Industry PE at 26.6 — sector trades at moderate valuations.
• Specialty chemicals industry benefits from global demand but faces margin pressures and cyclical risks.

🔎 Conclusion

DEEPAKNTR is financially stable with negligible debt but suffers from weak profitability and extremely high valuations. Entry is advisable only near 1,500–1,550 ₹, with cautious long-term holding. Improvement in earnings and return ratios will be critical for sustainable upside.