DEEPAKNTR - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.4

📈 Positive

• 💰 Low debt-to-equity ratio of 0.02 ensures financial resilience and minimal leverage risk.
• 📊 Decent return metrics — ROCE at 10.1% and ROE at 8.22% indicate moderate capital efficiency.
• 📈 EPS of ₹17.9 supports earnings visibility despite recent profit decline.
• 📈 DII holding increased by 0.09%, showing slight domestic institutional support.

⚠️ Limitation

• 📉 Extremely high P/E of 96.7 vs industry average of 32.0 suggests significant overvaluation.
• 📉 Negative PEG ratio (-4.92) implies valuation is not supported by growth trajectory.
• 📉 Quarterly PAT dropped from ₹53.9 Cr. to ₹30.3 Cr., showing margin pressure.
• 📉 MACD at -17.0 and RSI at 35.8 reflect weak technical momentum.
• 📉 Trading below DMA50 and DMA200 (₹1,801 and ₹1,987), confirming short-term bearish trend.

📰 Company Negative News

• 📉 FII holding declined by 0.47%, indicating reduced foreign investor interest.
• 📉 52-week performance nearly flat (0.30%), reflecting market caution or sectoral headwinds.

🌟 Company Positive News

• 📈 Dividend yield of 0.43% offers modest passive income.
• 📈 Volume near 1-week average suggests stable investor engagement.

🧪 Industry

• 🧪 DEEPAKNTR operates in the specialty chemicals sector, serving pharmaceuticals, agrochemicals, and performance materials markets.
• 📊 Industry P/E of 32.0 reflects moderate growth expectations and premium valuations for niche chemical players.

🧭 Conclusion

• 📌 Suggested entry zone: ₹1,700–₹1,730, near support and 52-week low for better margin of safety.
• 🕰️ Long-term holding cautious due to valuation concerns and earnings volatility.
• ⚖️ Monitor margin recovery and technical reversal before aggressive accumulation.