⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DEEPAKNTR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | DEEPAKNTR | Market Cap | 19,278 Cr. | Current Price | 1,414 ₹ | High / Low | 2,174 ₹ |
| Stock P/E | 91.2 | Book Value | 232 ₹ | Dividend Yield | 0.53 % | ROCE | 10.1 % |
| ROE | 8.22 % | Face Value | 2.00 ₹ | DMA 50 | 1,567 ₹ | DMA 200 | 1,749 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | 0.50 % | PAT Qtr | 15.5 Cr. | PAT Prev Qtr | 112 Cr. |
| RSI | 31.8 | MACD | -53.6 | Volume | 1,51,029 | Avg Vol 1Wk | 1,34,594 |
| Low price | 1,384 ₹ | High price | 2,174 ₹ | PEG Ratio | -4.64 | Debt to equity | 0.01 |
| 52w Index | 3.90 % | Qtr Profit Var | -10.3 % | EPS | 15.0 ₹ | Industry PE | 25.7 |
📊 Core Financials
- Revenue Growth: PAT dropped sharply (₹15.5 Cr vs ₹112 Cr), showing significant earnings pressure
- Profit Margins: EPS ₹15.0, weak profitability
- Debt Ratio: Very low leverage (Debt-to-Equity 0.01)
- Cash Flows: Supported by low debt, but earnings volatility is high
- Return Metrics: ROCE 10.1%, ROE 8.22% — modest efficiency
💹 Valuation Indicators
- P/E Ratio: 91.2 (far above industry PE of 25.7, extremely overvalued)
- P/B Ratio: ~6.1 (premium valuation)
- PEG Ratio: -4.64 (negative, weak growth outlook)
- Intrinsic Value: Current price ₹1,414 is near support (₹1,384), but valuation remains stretched
🏢 Business Model & Competitive Advantage
- Specialty chemicals manufacturer with diversified product portfolio
- Debt-free balance sheet provides resilience
- Dividend yield of 0.53% is modest
- Competitive advantage limited by weak profitability trends
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹1,380–₹1,450 range (near support levels)
- Long-Term Holding: Risky due to stretched valuation and declining earnings
- Guidance: Suitable only for speculative investors betting on turnaround
✅ Positive
- Debt-free company ensures financial stability
- DII holdings increased (+0.50%), showing domestic investor support
- Strong industry presence in specialty chemicals
⚠️ Limitation
- Extremely high P/E ratio compared to industry
- Weak ROE and ROCE indicate poor efficiency
- Quarterly PAT dropped significantly
📰 Company Negative News
- Decline in FII holdings (-0.15%) shows reduced foreign investor confidence
- PAT dropped from ₹112 Cr to ₹15.5 Cr, showing earnings collapse
🌟 Company Positive News
- DII holdings increased (+0.50%), showing domestic investor confidence
- Debt-to-equity ratio at 0.01, indicating strong balance sheet
🏦 Industry
- Chemicals sector with cyclical demand
- Industry PE at 25.7, DEEPAKNTR trades far above this, showing extreme overvaluation
- Sector growth supported by industrial demand, but profitability remains key
🔎 Conclusion
- DEEPAKNTR is debt-free but has weak efficiency metrics and volatile earnings
- Valuation is extremely stretched compared to industry peers
- Entry near ₹1,380–₹1,450 only suitable for high-risk investors
- Best suited for speculative portfolios, not conservative long-term holdings