DEEPAKNTR - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.4
| Stock Code | DEEPAKNTR | Market Cap | 23,690 Cr. | Current Price | 1,737 ₹ | High / Low | 2,174 ₹ |
| Stock P/E | 112 | Book Value | 232 ₹ | Dividend Yield | 0.43 % | ROCE | 10.1 % |
| ROE | 8.22 % | Face Value | 2.00 ₹ | DMA 50 | 1,551 ₹ | DMA 200 | 1,693 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | 0.26 % | PAT Qtr | 15.5 Cr. | PAT Prev Qtr | 112 Cr. |
| RSI | 72.0 | MACD | 73.2 | Volume | 2,76,606 | Avg Vol 1Wk | 1,89,923 |
| Low price | 1,280 ₹ | High price | 2,174 ₹ | PEG Ratio | -5.70 | Debt to equity | 0.01 |
| 52w Index | 51.1 % | Qtr Profit Var | -10.3 % | EPS | 15.0 ₹ | Industry PE | 28.9 |
Analysis: Deepak Nitrite (DEEPAKNTR) shows weak fundamentals despite strong technical momentum. Current price (1,737 ₹) is above both DMA 50 (1,551 ₹) and DMA 200 (1,693 ₹), indicating bullishness. RSI at 72.0 suggests overbought conditions, while MACD (73.2) confirms strong momentum. ROCE (10.1%) and ROE (8.22%) are relatively weak, reflecting inefficiency. Quarterly PAT dropped sharply (15.5 Cr. vs 112 Cr.), with profit variation at -10.3%, raising caution. Valuation is extremely stretched with P/E of 112 compared to industry PE of 28.9, and PEG ratio (-5.70) highlights poor growth prospects. Debt-to-equity ratio is very low (0.01), which is a positive.
Optimal Entry Price: Around 1,680–1,700 ₹ (near DMA 200 support).
Exit Strategy if Holding: Consider booking profits near 1,780–1,800 ₹ unless momentum sustains above 1,820 ₹ resistance.
✅ Positive
- Stock trading above DMA 50 and DMA 200 indicates bullish trend.
- Debt-to-equity ratio of 0.01 ensures financial stability.
- Institutional investors increased their stake (FII +0.13%, DII +0.26%).
⚠️ Limitation
- Extremely high P/E (112) compared to industry average (28.9).
- Weak ROCE (10.1%) and ROE (8.22%).
- Quarterly PAT decline (15.5 Cr. vs 112 Cr.) with -10.3% variation.
- RSI at 72.0 indicates overbought conditions.
📰 Company Negative News
- No major negative news reported, but sharp profit decline and stretched valuation are concerns.
🌟 Company Positive News
- Stock momentum supported by strong technicals.
- Debt-free status enhances financial flexibility.
- Institutional investors increased their stake.
🏭 Industry
- Industry P/E at 28.9 suggests Deepak Nitrite trades at a steep premium.
- Chemicals sector remains cyclical but benefits from industrial demand.
📌 Conclusion
Deepak Nitrite is a risky candidate for swing trading due to weak efficiency metrics and extreme valuation. Entry around 1,680–1,700 ₹ offers a safer setup, while exit near 1,780–1,800 ₹ is advisable unless momentum sustains above 1,820 ₹. Strong technicals and debt-free status are positives, but sharp profit decline and stretched valuation warrant cautious optimism.
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