⚠ 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.
DEEPAKNTR - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | DEEPAKNTR | Market Cap | 22,552 Cr. | Current Price | 1,652 ₹ | High / Low | 2,400 ₹ |
| Stock P/E | 106 | Book Value | 232 ₹ | Dividend Yield | 0.45 % | ROCE | 10.1 % |
| ROE | 8.22 % | Face Value | 2.00 ₹ | DMA 50 | 1,631 ₹ | DMA 200 | 1,816 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | 0.50 % | PAT Qtr | 112 Cr. | PAT Prev Qtr | 30.3 Cr. |
| RSI | 56.8 | MACD | -4.54 | Volume | 1,32,372 | Avg Vol 1Wk | 1,24,009 |
| Low price | 1,513 ₹ | High price | 2,400 ₹ | PEG Ratio | -5.38 | Debt to equity | 0.01 |
| 52w Index | 15.7 % | Qtr Profit Var | -21.5 % | EPS | 15.6 ₹ | Industry PE | 25.9 |
📊 Deepak Nitrite (DEEPAKNTR) shows strong institutional support and recent profit growth but faces extremely high valuation and weak efficiency ratios. It is a moderate candidate for swing trading, suitable only for cautious short-term trades near support levels.
✅ Optimal Entry Price: 1,630–1,650 ₹ (near 50 DMA support)
🚪 Exit Strategy if Holding: Consider exiting near 1,750–1,780 ₹ (short-term resistance zone) or if RSI moves above 60.
Positive
- 💡 EPS of 15.6 ₹ provides earnings base.
- 📈 PAT improved significantly from 30.3 Cr. to 112 Cr., showing strong sequential growth.
- 🏦 Debt-to-equity ratio of 0.01 indicates almost debt-free balance sheet.
- 📊 Increase in DII holdings (+0.50%) reflects domestic institutional support.
- 📈 RSI at 56.8 suggests moderate strength, not yet overbought.
Limitation
- ⚠️ Extremely high P/E (106) compared to industry average (25.9), suggesting severe overvaluation.
- 📉 Weak ROCE (10.1%) and ROE (8.22%) indicate poor efficiency.
- 🔻 MACD (-4.54) signals weak momentum despite price stability.
- 📊 PEG ratio (-5.38) suggests poor valuation relative to growth.
- 💰 Dividend yield of 0.45% is modest, reducing passive income appeal.
Company Negative News
- 📉 Decline in FII holdings (-0.15%) shows reduced foreign investor confidence.
- 📊 Quarterly profit variation (-21.5%) highlights year-on-year weakness despite sequential improvement.
Company Positive News
- 📈 Strong sequential PAT growth (+269%) indicates operational recovery.
- 📊 Increase in DII holdings (+0.50%) shows growing domestic institutional trust.
Industry
- 🏭 Industry P/E at 25.9 is far lower than DEEPAKNTR’s 106, highlighting extreme premium valuation.
- 📈 Specialty chemicals sector remains in demand, supported by industrial growth and export opportunities.
Conclusion
🔎 Deepak Nitrite is fundamentally overvalued and technically weak, despite strong sequential profit growth. Swing traders may cautiously enter near 1,630–1,650 ₹ and exit near 1,750–1,780 ₹. Monitoring RSI and MACD is crucial, as momentum indicators suggest limited upside unless a reversal occurs.