DEEPAKNTR - Fundamental Analysis

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

📊 Fundamental Analysis: Deepak Nitrite Ltd (DEEPAKNTR) Fundamental Rating: 3.8

🧾 Core Financials Overview

Profit Metrics

EPS: ₹51.1 ➜ strong per-share earnings for the chemical sector

Quarterly PAT grew from ₹98.1 Cr to ₹202 Cr ➜ significant rebound — nearly 2x jump

Return Ratios

ROE: 13.4%, ROCE: 16.3% ➜ solid efficiency, though not industry-leading

Debt Profile

Debt-to-equity: 0.24 ➜ comfortable leverage level — financial flexibility intact

Dividend Yield

0.40% ➜ mild return for income-focused investors — more of a growth bet

📌 Takeaway: Stable returns and improving quarterly profit. ROCE suggests healthy operational footing.

💸 Valuation Metrics

Metric Value Interpretation

P/E Ratio 37.4 Slightly rich compared to industry average (34.4)

P/B Ratio ~4.72 (₹1,865 / ₹395) ➜ premium pricing for brand & IP

PEG Ratio -2.71 Negative PEG signals declining growth expectations or earnings volatility

📉 Verdict: Valuation on the higher side — PEG warning signals a need for caution despite earnings recovery.

🏭 Business Model & Competitive Edge

Segments: Performance chemicals, specialty chemicals, basic chemicals

Strengths

Strategic backward integration

Diverse end-user industries (agro, pharma, dyes, petrochem)

R&D capabilities & capacity expansion (e.g., Dahej plant)

Challenges

Highly cyclical demand and feedstock pricing pressures

Environmental and regulatory constraints in chemical manufacturing

📈 Institutional Activity

FII ↑ 0.04%, DII ↓ 0.61% ➜ mixed signals — slight foreign interest, domestic trimming

📉 Technical Overview

RSI: 31.5 ➜ near oversold territory — potential for rebound

MACD: -20.8 ➜ bearish sentiment — downtrend persists

Price trading below DMA 50 & DMA 200 ➜ short-term weakness confirmed

✅ Suggested Entry Zone: ₹1,795–₹1,850 🔍 Accumulate only if support near ₹1,780 holds. Prefer confirmation of reversal.

📅 Long-Term Investment Insight

🧠 Ideal for

Investors targeting diversified exposure in Indian specialty chemicals

Those comfortable with cyclical trends and global commodity dynamics

🔍 Track

Capacity utilization & new product development

Export demand trends and margin recovery

Policy tailwinds from “China+1” strategy favoring Indian manufacturers

Want to run a peer comparison with Aarti Industries, Navin Fluorine, or Vinati Organics to get a sense of who’s got the sharpest chemical edge? I’ve got the data if you're curious.

Edit in a page