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DEEPAKFERT - Swing Trade Analysis with AI Signals

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Rating: 3.6

Last Updated Time : 05 May 26, 03:11 pm

📊 Swing Trade Rating: 3.6

Stock Code DEEPAKFERT Market Cap 15,972 Cr. Current Price 1,265 ₹ High / Low 1,779 ₹
Stock P/E 49.6 Book Value 274 ₹ Dividend Yield 0.79 % ROCE 14.9 %
ROE 12.3 % Face Value 10.0 ₹ DMA 50 1,106 ₹ DMA 200 1,202 ₹
Chg in FII Hold 0.00 % Chg in DII Hold 0.07 % PAT Qtr 10.8 Cr. PAT Prev Qtr 50.0 Cr.
RSI 67.6 MACD 68.1 Volume 6,70,102 Avg Vol 1Wk 3,84,128
Low price 865 ₹ High price 1,779 ₹ PEG Ratio 1.75 Debt to equity 0.13
52w Index 43.8 % Qtr Profit Var -83.9 % EPS 25.5 ₹ Industry PE 19.0

Analysis: Deepak Fertilizers (DEEPAKFERT) shows mixed signals for swing trading. Current price (1,265 ₹) is above both DMA 50 (1,106 ₹) and DMA 200 (1,202 ₹), indicating short-term bullishness. RSI at 67.6 suggests overbought conditions, while MACD (68.1) supports strong momentum. Fundamentals are moderate with ROCE (14.9%) and ROE (12.3%), but quarterly PAT dropped sharply (10.8 Cr. vs 50.0 Cr.), with profit variation at -83.9%, raising caution. Valuation is stretched with P/E of 49.6 compared to industry PE of 19.0, though PEG ratio of 1.75 suggests moderate growth potential. Debt-to-equity ratio is low (0.13), which is a positive.

Optimal Entry Price: Around 1,200–1,220 ₹ (near DMA support).

Exit Strategy if Holding: Consider booking profits near 1,320–1,350 ₹ unless momentum sustains above 1,360 ₹ resistance.

✅ Positive

  • Stock trading above DMA 50 and DMA 200 indicates bullish trend.
  • Low debt-to-equity ratio (0.13) ensures financial stability.
  • DII holdings increased (+0.07%), showing domestic investor confidence.
  • EPS of 25.5 ₹ supports valuation strength.

⚠️ Limitation

  • Quarterly PAT decline (10.8 Cr. vs 50.0 Cr.) with -83.9% variation.
  • High P/E (49.6) compared to industry average (19.0).
  • RSI at 67.6 indicates overbought conditions.
  • FII holdings unchanged, showing limited foreign interest.

📰 Company Negative News

  • No major negative news reported, but sharp profit decline and stretched valuation are concerns.

🌟 Company Positive News

  • Stock momentum supported by strong technicals.
  • Low debt enhances financial flexibility.
  • Domestic institutional investors increased their stake.

🏭 Industry

  • Industry P/E at 19.0 suggests Deepak Fertilizers trades at a premium.
  • Chemicals and fertilizers sector remains cyclical but essential for agriculture demand.

📌 Conclusion

Deepak Fertilizers is a moderately risky candidate for swing trading. Entry around 1,200–1,220 ₹ offers a safer risk-reward setup, while exit near 1,320–1,350 ₹ is advisable unless momentum sustains above 1,360 ₹. Strong technicals and low debt are positives, but sharp profit decline and premium valuation warrant cautious optimism.

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