Deepak Nitrite Ltd. (DEEPAKNTR) 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

Navin Fluo.Intl.

Anupam Rasayan

SRF

Pidilite Inds.

Gujarat Fluoroch

Himadri Special

Atul

Vinati Organics

Fine Organic

BASF India

Deepak Nitrite

Why is Deepak Nitrite Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate -4.38% of over the last 5 years

Negative results in Sep 25

PAT(Latest six months) At Rs 230.91 cr has Grown at -41.80%
PBT LESS OI(Q) At Rs 143.08 cr has Fallen at -23.0% (vs previous 4Q average)
ROCE(HY) Lowest at 11.29%

With ROCE of 10.5, it has a Expensive valuation with a 3.5 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -42.23%, its profits have fallen by -33.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -42.23% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

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 Specialty Chemicals)

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

Is Deepak Nitrite for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Deepak Nitrite

-42.23%

-1.49

28.42%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.46%

EBIT Growth (5y)

-4.38%

EBIT to Interest (avg)

42.98

Debt to EBITDA (avg)

0.48

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.61

Tax Ratio

27.34%

Dividend Payout Ratio

12.62%

Pledged Shares

Institutional Holding

28.91%

ROCE (avg)

29.34%

ROE (avg)

21.28%

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

3.87

EV to EBIT

33.00

EV to EBITDA

25.34

EV to Capital Employed

3.46

EV to Sales

2.83

PEG Ratio

Dividend Yield

0.48%

ROCE (Latest)

10.49%

ROE (Latest)

9.64%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-18What is not working for the Company

PAT(Latest six months)

At Rs 230.91 cr has Grown at -41.80%

PBT LESS OI(Q)

At Rs 143.08 cr has Fallen at -23.0% (vs previous 4Q average

ROCE(HY)

Lowest at 11.29%

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.71 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 32.59 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.70 times

NET SALES(Q)

At Rs 1,901.89 cr has Fallen at -5.0% (vs previous 4Q average

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Here's what is not working for Deepak Nitrite

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 143.08 cr has Fallen at -23.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 185.77 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 118.71 cr has Fallen at -21.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 151.72 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Lowest at 8.71 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales - Quarterly

At Rs 1,901.89 cr has Fallen at -5.0% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 2,001.24 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 32.59 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 5.70 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio