DEEPAKNTR - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.4
| Stock Code | DEEPAKNTR | Market Cap | 22,516 Cr. | Current Price | 1,652 ₹ | High / Low | 2,012 ₹ |
| Stock P/E | 114 | Book Value | 236 ₹ | Dividend Yield | 0.46 % | ROCE | 7.43 % |
| ROE | 6.23 % | Face Value | 2.00 ₹ | DMA 50 | 1,668 ₹ | DMA 200 | 1,703 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | 0.26 % | PAT Qtr | 38.8 Cr. | PAT Prev Qtr | 15.5 Cr. |
| RSI | 44.5 | MACD | -19.7 | Volume | 2,63,612 | Avg Vol 1Wk | 1,57,508 |
| Low price | 1,280 ₹ | High price | 2,012 ₹ | PEG Ratio | -4.64 | Debt to equity | 0.02 |
| 52w Index | 50.8 % | Qtr Profit Var | -28.0 % | EPS | 13.8 ₹ | Industry PE | 28.7 |
Deepak Nitrite shows weak fundamentals with an extremely high P/E ratio, poor ROCE and ROE, and negative PEG ratio. While debt levels are very low and quarterly PAT improved compared to the previous quarter, overall efficiency remains weak. Technically, the stock is trading below both its 50 DMA and 200 DMA, with RSI at 44.5 and MACD negative, indicating bearish momentum. It is a risky candidate for swing trading with limited upside potential.
💡 Optimal Entry Price: Around 1,600–1,630 ₹ (near support levels).
📈 Exit Strategy: If already holding, consider booking profits near 1,700–1,730 ₹ (short-term resistance) or exit if price falls below 1,580 ₹ (support zone).
✅ Positive
- 📈 Large market cap of 22,516 Cr. provides stability.
- 💰 Very low debt-to-equity ratio of 0.02 ensures financial safety.
- 📊 PAT improved from 15.5 Cr. to 38.8 Cr. quarter-on-quarter.
- 📉 EPS at 13.8 ₹ provides some earnings base.
⚠️ Limitation
- 📉 Extremely high P/E ratio of 114 compared to industry average of 28.7.
- 📉 Weak ROCE at 7.43% and ROE at 6.23% indicate poor efficiency.
- 📉 Negative PEG ratio (-4.64) suggests unsustainable valuation relative to growth.
- 📉 Trading below both DMA 50 and DMA 200, indicating bearish trend.
📰 Company Negative News
- 📉 Quarterly profit variation (-28%) indicates earnings pressure despite sequential improvement.
- 📉 Weak momentum indicators (RSI and MACD) suggest bearish technical outlook.
🌟 Company Positive News
- 📈 Increase in FII holding (+0.13%) and DII holding (+0.26%) signals institutional support.
- 📊 PAT improved significantly compared to previous quarter.
🏭 Industry
- 📊 Industry P/E at 28.7, far lower than Deepak Nitrite’s 114, suggesting sector is moderately valued while the stock is highly overvalued.
- 📈 Chemicals industry remains cyclical but benefits from industrial demand.
📌 Conclusion
Deepak Nitrite presents a weak swing trade opportunity. While low debt and recent profit improvement are positives, extremely high valuation, poor efficiency metrics, and bearish technicals limit upside. Entry is favorable near 1,600–1,630 ₹, with profit booking advised around 1,700–1,730 ₹. Risk management is crucial due to overvaluation and weak fundamentals.