DEEPAKNTR - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | DEEPAKNTR | Market Cap | 19,278 Cr. | Current Price | 1,414 ₹ | High / Low | 2,174 ₹ |
| Stock P/E | 91.2 | Book Value | 232 ₹ | Dividend Yield | 0.53 % | ROCE | 10.1 % |
| ROE | 8.22 % | Face Value | 2.00 ₹ | DMA 50 | 1,567 ₹ | DMA 200 | 1,749 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | 0.50 % | PAT Qtr | 15.5 Cr. | PAT Prev Qtr | 112 Cr. |
| RSI | 31.8 | MACD | -53.6 | Volume | 1,51,029 | Avg Vol 1Wk | 1,34,594 |
| Low price | 1,384 ₹ | High price | 2,174 ₹ | PEG Ratio | -4.64 | Debt to equity | 0.01 |
| 52w Index | 3.90 % | Qtr Profit Var | -10.3 % | EPS | 15.0 ₹ | Industry PE | 25.7 |
📊 Chart & Trend Analysis: DEEPAKNTR is trading at ₹1,414, below both its 50 DMA (₹1,567) and 200 DMA (₹1,749), indicating bearish momentum. RSI at 31.8 shows the stock is nearing oversold territory. MACD at -53.6 confirms strong negative momentum. Bollinger Bands suggest price is near the lower band, with support around ₹1,384.
📈 Momentum Signals: Current volume (1.51 lakh) is slightly above the 1-week average (1.34 lakh), showing active participation. However, weak RSI and negative MACD reinforce bearish bias, suggesting selling pressure dominates.
💡 Entry Zone: Optimal entry around ₹1,380–1,420 (near support).
🚪 Exit Zone: Resistance seen at ₹1,567 (50 DMA) and ₹1,749 (200 DMA). Profit booking advised near these levels.
🔎 Trend Status: The stock is currently consolidating with bearish bias. A breakout above ₹1,567 would indicate recovery momentum.
Positive
- Debt-free balance sheet (Debt-to-equity 0.01) ensures financial stability.
- EPS of ₹15.0 provides earnings visibility.
- DII holding increased (+0.50%), showing domestic institutional support.
- Large market cap (₹19,278 Cr) adds credibility.
Limitation
- Extremely high P/E (91.2) compared to industry average (25.7) suggests severe overvaluation.
- Weak ROCE (10.1%) and ROE (8.22%) indicate poor capital efficiency.
- Trading below both 50 DMA and 200 DMA highlights weak technical strength.
- PEG ratio (-4.64) reflects poor growth-to-valuation alignment.
Company Negative News
- Decline in FII holding (-0.15%) shows reduced foreign investor confidence.
- Quarterly PAT dropped sharply (₹15.5 Cr vs ₹112 Cr), indicating margin pressure.
Company Positive News
- DII holding increased (+0.50%), reflecting domestic institutional support.
- Quarterly profit variation (-10.3% sequential, but YoY resilience) shows some operational stability despite margin pressure.
Industry
- Industry P/E at 25.7 is far lower than DEEPAKNTR’s P/E, suggesting peers are more attractively valued.
- Chemicals and specialty products sector remains vital, supported by demand in industrial and export markets.
Conclusion
⚖️ DEEPAKNTR shows debt-free stability and institutional support but faces valuation concerns and weak efficiency metrics. Short-term consolidation with bearish bias is evident. Entry near ₹1,380–1,420 offers margin of safety, while exits should be considered near ₹1,567–1,749. Long-term investors should be cautious given earnings volatility and high valuations, while traders may wait for confirmation above 50 DMA before aggressive buying.
Would you like me to extend this into a peer benchmarking overlay (e.g., comparing DEEPAKNTR with Aarti Industries, Atul Ltd, and SRF) to highlight relative strength and sector rotation opportunities?