Deep Industries Ltd (DEEPINDS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

C P C L

MRPL

Oil India

Gulf Oil Lubric.

Castrol India

Deep Industries

Antelopus Selan

Veedol Corporat

Savita Oil Tech

Hind.Oil Explor.

Prabha Energy

Why is Deep Industries Ltd ?

With ROE of 11, it has a Expensive valuation with a 1.4 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -29.38%, its profits have risen by 52.7% ; the PEG ratio of the company is 0.2

Despite the size of the company, domestic mutual funds hold only 0.13% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 9.00% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -29.38% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Deep Industries for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Deep Industries

-29.38%

-0.66

44.45%

Sensex

7.97%

0.69

11.53%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.71%

EBIT Growth (5y)

64.50%

EBIT to Interest (avg)

16.98

Debt to EBITDA (avg)

0.64

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.26

Tax Ratio

100.00%

Dividend Payout Ratio

12.61%

Pledged Shares

Institutional Holding

2.80%

ROCE (avg)

7.85%

ROE (avg)

8.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.35

EV to EBIT

9.57

EV to EBITDA

8.00

EV to Capital Employed

1.35

EV to Sales

3.26

PEG Ratio

0.21

Dividend Yield

0.75%

ROCE (Latest)

12.62%

ROE (Latest)

10.96%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

27What is working for the Company

ROCE(HY)

Highest at 13.88%

NET SALES(Q)

Highest at Rs 221.50 cr

OPERATING PROFIT TO INTEREST(Q)

Highest at 23.19 times

PBDIT(Q)

Highest at Rs 100.17 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 45.22%

PBT LESS OI(Q)

Highest at Rs 80.20 cr.

PAT(Q)

Highest at Rs 68.06 cr.

EPS(Q)

Highest at Rs 10.63

-7What is not working for the Company

INTEREST(Latest six months)

At Rs 10.83 cr has Grown at 51.05%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 42.79 cr

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Here's what is working for Deep Industries

Net Sales - Quarterly

Highest at Rs 221.50 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 23.19 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Highest at Rs 100.17 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 45.22%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 80.20 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 80.20 cr has Grown at 39.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 57.66 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 68.06 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 10.63

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Deep Industries

Interest - Latest six months

At Rs 10.83 cr has Grown at 51.05%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 42.79 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents