⚠ 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.
DEEPAKFERT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | DEEPAKFERT | Market Cap | 12,870 Cr. | Current Price | 1,020 ₹ | High / Low | 1,779 ₹ |
| Stock P/E | 39.9 | Book Value | 274 ₹ | Dividend Yield | 0.98 % | ROCE | 14.9 % |
| ROE | 12.3 % | Face Value | 10.0 ₹ | DMA 50 | 1,220 ₹ | DMA 200 | 1,317 ₹ |
| Chg in FII Hold | -0.63 % | Chg in DII Hold | 0.56 % | PAT Qtr | 10.8 Cr. | PAT Prev Qtr | 50.0 Cr. |
| RSI | 30.7 | MACD | -61.5 | Volume | 7,61,741 | Avg Vol 1Wk | 8,19,744 |
| Low price | 888 ₹ | High price | 1,779 ₹ | PEG Ratio | 1.41 | Debt to equity | 0.13 |
| 52w Index | 14.8 % | Qtr Profit Var | -83.9 % | EPS | 25.5 ₹ | Industry PE | 17.2 |
📊 Deepak Fertilizers (DEEPAKFERT) shows weak earnings momentum and high valuation relative to industry peers. It is a risky candidate for swing trading, suitable only for cautious short-term trades near strong support levels.
✅ Optimal Entry Price: 980–1,000 ₹ (near support zone close to 52-week low)
🚪 Exit Strategy if Holding: Consider exiting near 1,150–1,180 ₹ (short-term resistance zone around 50 DMA) or if RSI moves above 45–50.
Positive
- 💡 ROCE (14.9%) and ROE (12.3%) show moderate efficiency.
- 📈 EPS of 25.5 ₹ provides earnings base.
- 🏦 Low debt-to-equity ratio (0.13) ensures financial stability.
- 💰 Dividend yield of 0.98% adds investor confidence.
- 📊 Large market cap of 12,870 Cr. ensures liquidity.
Limitation
- ⚠️ High P/E (39.9) compared to industry average (17.2), suggesting overvaluation.
- 📉 RSI at 30.7 indicates oversold conditions but also weak momentum.
- 🔻 MACD (-61.5) signals strong bearish trend.
- 📊 Quarterly profit declined sharply (-83.9%), showing earnings pressure.
- 📉 Current price well below 50 DMA (1,220 ₹) and 200 DMA (1,317 ₹), reflecting technical weakness.
Company Negative News
- 📉 Decline in FII holdings (-0.63%) shows reduced foreign investor confidence.
- 📊 PAT dropped significantly from 50 Cr. to 10.8 Cr., highlighting earnings weakness.
Company Positive News
- 📈 Increase in DII holdings (+0.56%) reflects domestic institutional support.
- 📊 PEG ratio of 1.41 suggests fair valuation relative to growth compared to peers.
Industry
- 🏭 Industry P/E at 17.2 is much lower than DEEPAKFERT’s 39.9, highlighting premium valuation.
- 📈 Fertilizer and chemicals sector remains essential, supported by agricultural demand and government initiatives.
Conclusion
🔎 Deepak Fertilizers is fundamentally stable but technically weak with sharp profit decline. Swing traders may cautiously enter near 980–1,000 ₹ and exit near 1,150–1,180 ₹. Monitoring RSI and MACD is crucial, as momentum indicators suggest limited upside unless a reversal occurs.