DEEPAKNTR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | DEEPAKNTR | Market Cap | 23,690 Cr. | Current Price | 1,737 ₹ | High / Low | 2,174 ₹ |
| Stock P/E | 112 | Book Value | 232 ₹ | Dividend Yield | 0.43 % | ROCE | 10.1 % |
| ROE | 8.22 % | Face Value | 2.00 ₹ | DMA 50 | 1,551 ₹ | DMA 200 | 1,693 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | 0.26 % | PAT Qtr | 15.5 Cr. | PAT Prev Qtr | 112 Cr. |
| RSI | 72.0 | MACD | 73.2 | Volume | 2,76,606 | Avg Vol 1Wk | 1,89,923 |
| Low price | 1,280 ₹ | High price | 2,174 ₹ | PEG Ratio | -5.70 | Debt to equity | 0.01 |
| 52w Index | 51.1 % | Qtr Profit Var | -10.3 % | EPS | 15.0 ₹ | Industry PE | 28.9 |
📊 Deepak Nitrite (DEEPAKNTR) shows weak fundamentals despite its large market cap of ₹23,690 Cr. ROE (8.22%) and ROCE (10.1%) are modest, reflecting limited efficiency. Debt-to-equity at 0.01 ensures financial stability, but EPS of ₹15.0 is low relative to valuation. Dividend yield of 0.43% adds minor shareholder value. Quarterly PAT dropped sharply (112 Cr → 15.5 Cr, -10.3%), raising concerns about earnings volatility. Valuation is severely stretched with P/E (112) compared to industry average (28.9), while PEG ratio (-5.70) signals poor growth-adjusted value. Technicals show strong bullish momentum with RSI (72.0), MACD (73.2), and price trading above both 50 DMA (1,551 ₹) and 200 DMA (1,693 ₹).
🎯 Entry Zone: 1,710 ₹ – 1,730 ₹ (near DMA support)
📌 Long-Term Holding: Risky due to weak earnings and extreme overvaluation. Suitable only for cautious accumulation with strict stop-loss discipline. Long-term compounding potential is limited unless profitability improves significantly.
Positive
- Price trading above both 50 DMA and 200 DMA confirms bullish bias.
- Strong volume participation supports momentum.
- Low debt-to-equity (0.01) ensures financial stability.
- Institutional inflows with FII (+0.13%) and DII (+0.26%).
Limitation
- Extremely high P/E (112) vs industry average (28.9).
- Weak ROE (8.22%) and ROCE (10.1%).
- Quarterly PAT decline (-10.3%) highlights earnings weakness.
- Negative PEG ratio (-5.70) indicates poor growth-adjusted valuation.
- RSI above 70 signals overbought conditions.
Company Negative News
- Sharp decline in quarterly PAT raises concerns about operational performance.
- Profit variation (-10.3%) highlights earnings volatility.
Company Positive News
- Institutional inflows (FII and DII) show confidence despite earnings weakness.
- Strong historical price performance with 52w Index at 51.1%.
Industry
- Industry P/E at 28.9 is far lower than DEEPAKNTR’s 112, highlighting valuation risk.
- Chemicals sector remains cyclical, influenced by demand and input costs.
Conclusion
⚠️ DEEPAKNTR is trending upward with strong technical momentum, supported by volume and institutional inflows. Entry near 1,710–1,730 ₹ offers favorable positioning, with exits around 1,770–1,800 ₹. However, sharp earnings decline and stretched valuations warrant cautious accumulation, with strict stop-loss management near 1,700 ₹.
This structured HTML report captures Deepak Nitrite’s strong technical momentum but highlights its earnings weakness and severe overvaluation. If you’d like, I can extend this into a peer benchmarking overlay against other chemical companies like Aarti Industries or Atul Ltd to show relative positioning. Would you like me to prepare that next?