DEEPAKFERT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.6
| Stock Code | DEEPAKFERT | Market Cap | 11,542 Cr. | Current Price | 914 ₹ | High / Low | 1,779 ₹ |
| Stock P/E | 35.8 | Book Value | 274 ₹ | Dividend Yield | 1.09 % | ROCE | 14.9 % |
| ROE | 12.3 % | Face Value | 10.0 ₹ | DMA 50 | 1,049 ₹ | DMA 200 | 1,229 ₹ |
| Chg in FII Hold | -0.63 % | Chg in DII Hold | 0.56 % | PAT Qtr | 10.8 Cr. | PAT Prev Qtr | 50.0 Cr. |
| RSI | 36.8 | MACD | -34.8 | Volume | 2,14,270 | Avg Vol 1Wk | 3,59,169 |
| Low price | 901 ₹ | High price | 1,779 ₹ | PEG Ratio | 1.26 | Debt to equity | 0.13 |
| 52w Index | 1.43 % | Qtr Profit Var | -83.9 % | EPS | 25.5 ₹ | Industry PE | 15.2 |
📊 Deepak Fertilisers (DEEPAKFERT) shows weak fundamentals with high P/E (35.8), low ROCE (14.9%), and ROE (12.3%). Technical indicators are bearish (RSI 36.8, MACD -34.8, price below 50 & 200 DMA). A sharp decline in quarterly profits further weakens sentiment, making it a risky swing trade candidate.
💡 Optimal Entry Price: Around ₹905–920, near strong support levels.
📈 Exit Strategy (if already holding): Consider exiting near ₹1,050–1,070 if recovery occurs, or cut losses if price falls below ₹900 decisively.
Positive
- Debt-to-equity ratio of 0.13 indicates low leverage.
- Dividend yield of 1.09% provides steady income.
- Book value of ₹274 offers valuation support.
- DII holdings increased (+0.56%), reflecting domestic institutional support.
Limitation
- High P/E (35.8) compared to industry average (15.2), suggesting overvaluation.
- Quarterly PAT dropped sharply from ₹50 Cr. to ₹10.8 Cr. (-83.9%).
- Price trading below both 50 DMA (1,049) and 200 DMA (1,229), confirming bearish trend.
- EPS of ₹25.5 is modest relative to valuation.
Company Negative News
- FII holdings decreased (-0.63%), showing reduced foreign investor confidence.
- Sharp decline in quarterly profits highlights operational weakness.
Company Positive News
- DII holdings increased (+0.56%), reflecting domestic support.
- PEG ratio of 1.26 suggests valuation is not extremely stretched relative to growth.
Industry
- Industry P/E at 15.2 is much lower than Deepak Fertilisers’, suggesting the stock trades at a steep premium.
- Chemicals and fertilisers sector remains cyclical, influenced by commodity prices and agricultural demand.
Conclusion
⚖️ Deepak Fertilisers is fundamentally weak and technically bearish, with high valuation and sharp profit decline. Swing traders may cautiously enter near support (~₹905–920) and exit near resistance (~₹1,050–1,070). Conservative traders should avoid until technical indicators improve and earnings stabilize.