DEEPAKFERT - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.6
| Stock Code | DEEPAKFERT | Market Cap | 19,710 Cr. | Current Price | 1,561 ₹ | High / Low | 1,779 ₹ |
| Stock P/E | 73.2 | Book Value | 290 ₹ | Dividend Yield | 0.64 % | ROCE | 8.42 % |
| ROE | 7.54 % | Face Value | 10.0 ₹ | DMA 50 | 1,353 ₹ | DMA 200 | 1,263 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.07 % | PAT Qtr | 122 Cr. | PAT Prev Qtr | 10.8 Cr. |
| RSI | 67.2 | MACD | 64.4 | Volume | 3,60,961 | Avg Vol 1Wk | 3,91,639 |
| Low price | 865 ₹ | High price | 1,779 ₹ | PEG Ratio | -37.4 | Debt to equity | 0.23 |
| 52w Index | 76.1 % | Qtr Profit Var | -30.4 % | EPS | 21.3 ₹ | Industry PE | 22.8 |
Deepak Fertilizers shows mixed fundamentals with decent market cap, low debt-to-equity, and strong recent PAT improvement. However, the very high P/E ratio compared to industry average, weak ROCE and ROE, negative PEG ratio, and modest dividend yield raise caution. Technically, the stock is trading well above its 50 DMA and 200 DMA, with RSI at 67.2 and MACD positive, indicating bullish momentum. It is a momentum-driven candidate for swing trading but carries valuation risks.
💡 Optimal Entry Price: Around 1,500–1,540 ₹ (near support levels close to DMA 50).
📈 Exit Strategy: If already holding, consider booking profits near 1,700–1,740 ₹ (short-term resistance) or exit if price falls below 1,480 ₹ (DMA 50 support).
✅ Positive
- 📈 PAT surged from 10.8 Cr. to 122 Cr. quarter-on-quarter.
- 💰 Low debt-to-equity ratio of 0.23 ensures financial stability.
- 📊 EPS at 21.3 ₹ provides a solid earnings base.
- 📉 Price trading above DMA 50 and DMA 200, confirming bullish trend.
⚠️ Limitation
- 📉 Very high P/E ratio of 73.2 compared to industry average of 22.8.
- 📉 Weak ROCE at 8.42% and ROE at 7.54% indicate poor efficiency.
- 📉 Negative PEG ratio (-37.4) suggests unsustainable valuation relative to growth.
- 📉 Dividend yield at 0.64% is modest.
📰 Company Negative News
- 📉 No change in FII holding (0.00%) indicates lack of foreign investor interest.
- 📉 Quarterly profit variation (-30.4%) highlights earnings volatility despite recent PAT surge.
🌟 Company Positive News
- 📈 Increase in DII holding (+0.07%) signals domestic institutional support.
- 📊 Strong PAT improvement boosts investor sentiment.
🏭 Industry
- 📊 Industry P/E at 22.8, far lower than Deepak Fertilizers’ 73.2, suggesting sector is moderately valued while the stock is expensive.
- 📈 Fertilizers and chemicals industry remains essential but cyclical in nature.
📌 Conclusion
Deepak Fertilizers presents a momentum-driven swing trade opportunity. Strong PAT growth and bullish technicals are positives, but high valuation, weak efficiency metrics, and earnings volatility limit upside. Entry is favorable near 1,500–1,540 ₹, with profit booking advised around 1,700–1,740 ₹. Risk management is crucial due to valuation premium and cyclical industry pressures.