DEEPAKNTR - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.5
| Stock Code | DEEPAKNTR | Market Cap | 18,855 Cr. | Current Price | 1,383 ₹ | High / Low | 2,174 ₹ |
| Stock P/E | 89.2 | Book Value | 232 ₹ | Dividend Yield | 0.54 % | ROCE | 10.1 % |
| ROE | 8.22 % | Face Value | 2.00 ₹ | DMA 50 | 1,559 ₹ | DMA 200 | 1,746 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | 0.50 % | PAT Qtr | 15.5 Cr. | PAT Prev Qtr | 112 Cr. |
| RSI | 29.0 | MACD | -56.5 | Volume | 1,19,524 | Avg Vol 1Wk | 1,40,386 |
| Low price | 1,381 ₹ | High price | 2,174 ₹ | PEG Ratio | -4.54 | Debt to equity | 0.01 |
| 52w Index | 0.31 % | Qtr Profit Var | -10.3 % | EPS | 15.0 ₹ | Industry PE | 25.2 |
📊 Deepak Nitrite (DEEPAKNTR) shows weak fundamentals with very high P/E (89.2), low ROCE (10.1%), and low ROE (8.22%). Technical indicators are bearish (RSI 29.0, MACD -56.5, price below 50 & 200 DMA). A sharp decline in quarterly profits further weakens sentiment, making it a poor candidate for swing trading in the short term.
💡 Optimal Entry Price: Around ₹1,370–1,390, near strong support levels.
📈 Exit Strategy (if already holding): Consider exiting near ₹1,550–1,600 if recovery occurs, or cut losses if price falls below ₹1,360 decisively.
Positive
- Debt-to-equity ratio of 0.01 indicates virtually debt-free balance sheet.
- DII holdings increased (+0.50%), reflecting domestic institutional support.
- Book value of ₹232 provides valuation support.
Limitation
- Extremely high P/E (89.2) compared to industry average (25.2), suggesting steep overvaluation.
- Low ROCE (10.1%) and ROE (8.22%) indicate weak capital efficiency.
- PEG ratio (-4.54) suggests poor growth-adjusted valuation.
- Price trading below both 50 DMA (1,559) and 200 DMA (1,746), confirming bearish trend.
Company Negative News
- FII holdings decreased (-0.15%), showing reduced foreign investor confidence.
- Quarterly PAT dropped sharply from ₹112 Cr. to ₹15.5 Cr., highlighting earnings pressure.
Company Positive News
- DII holdings increased (+0.50%), reflecting domestic support.
- Low debt levels provide financial stability despite weak earnings.
Industry
- Industry P/E at 25.2 is far lower than Deepak Nitrite’s, suggesting the stock trades at a steep premium.
- Chemicals sector remains cyclical, influenced by global demand and commodity price fluctuations.
Conclusion
⚖️ Deepak Nitrite is fundamentally weak and technically bearish, with high valuation and sharp profit decline. Swing traders may cautiously enter near support (~₹1,370–1,390) and exit near resistance (~₹1,550–1,600). Conservative traders should avoid until technical indicators improve and earnings stabilize.