Deep Industries Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 2:39 am

Market Cap	3,716 Cr.
Current Price	581
High / Low	620/227
Stock P/E	26.9
Book Value	235
Dividend Yield	0.42 %
ROCE	10.3 %
ROE	8.73 %
Face Value	5.00
PEG Ratio	-0.79

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

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Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Gujarat Natural Resources Ltd	253 Cr.	19.7	24.3/9.92		8.53	0.00 %	1.12 %	3.49 %	10.0
Dolphin Offshore Enterprises (India) Ltd	2,200 Cr.	550	949/118	101	60.6	0.00 %	0.97 %	3.22 %	1.00
Deep Energy Resources Ltd	999 Cr.	312	348/150	694	121	0.00 %	0.39 %	0.35 %	10.0
Selan Explorations Technology Ltd	1,279 Cr.	841	1,100/404	22.1	286	0.00 %	12.3 %	8.70 %	10.0
Oil India Ltd	68,610 Cr.	422	768/242	8.18	324	2.49 %	17.7 %	18.0 %	10.0
Industry Average	30,032.69 Cr	548.38		87.77	544.76	0.83%	10.49%	9.47%	6.85

All Competitor Stocks of

Quarterly Result

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	43	61	71	91	75	84	73	67	98	103	101	101	105
Expenses	28	35	41	64	46	55	44	47	58	61	58	63	65
Operating Profit	15	26	30	27	29	29	30	19	40	42	43	39	40
OPM %	36%	42%	43%	29%	39%	34%	40%	29%	41%	41%	42%	38%	38%
Other Income	0	2	1	1	0	2	2	10	2	50	7	10	9
Interest	2	2	1	2	1	1	1	0	1	3	2	1	3
Depreciation	22	22	6	6	6	6	6	6	8	9	9	9	9
Profit before tax	-8	4	24	21	23	23	25	22	33	80	39	38	37
Tax %	1,038%	134%	30%	-2%	24%	26%	21%	25%	24%	10%	20%	22%	25%
Net Profit	76	-1	17	21	17	17	20	17	25	72	31	30	28
EPS in Rs	11.82	-0.22	2.61	3.31	2.66	2.66	3.04	2.59	3.85	11.29	4.88	4.59	4.25

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	313	318	262	194	322	341	404
Expenses	149	165	136	113	205	211	241
Operating Profit	164	153	126	81	116	131	163
OPM %	52%	48%	48%	42%	36%	38%	40%
Other Income	3	2	3	6	3	56	68
Interest	12	12	11	9	5	5	7
Depreciation	103	98	90	88	24	30	35
Profit before tax	52	44	28	-10	91	152	190
Tax %	96%	69%	-10%	744%	20%	17%
Net Profit	2	14	31	65	72	125	158
EPS in Rs	199.00	1,358.00	3,110.00	10.12	11.27	19.58	24.61
Dividend Payout %	0%	0%	0%	0%	14%	9%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
YoY Net Profit Growth (%)	600.00%	121.43%	109.68%	10.77%	73.61%
Change in YoY Net Profit Growth (%)	0.00%	-478.57%	-11.75%	-98.91%	62.84%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2018-2019 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	6%
3 Years:	30%
TTM:	18%

Compounded Profit Growth
10 Years:	%
5 Years:	56%
3 Years:	26%
TTM:	19%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	100%
1 Year:	130%

Return on Equity
10 Years:	%
5 Years:	9%
3 Years:	7%
Last Year:	9%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:38 am

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	0.00	0.00	0.00	32	32	32	32	32
Reserves	2	10	37	1,030	1,098	1,338	1,411	1,472
Borrowings	231	102	83	41	32	70	160	184
Other Liabilities	1,086	1,106	1,115	70	99	147	303	299
Total Liabilities	1,319	1,218	1,236	1,173	1,260	1,587	1,906	1,987
Fixed Assets	1,085	980	948	868	868	1,007	979	1,054
CWIP	1	4	3	1	5	20	220	184
Investments	64	10	9	29	73	48	142	164
Other Assets	169	223	276	276	314	512	566	584
Total Assets	1,319	1,218	1,236	1,173	1,260	1,587	1,906	1,987

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	200	92	47	81	55	82	180
Cash from Investing Activity +	-124	32	-59	-11	-76	-102	-281
Cash from Financing Activity +	-58	-147	4	-54	14	29	107
Net Cash Flow	19	-23	-8	16	-7	8	7

Free Cash Flow

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Free Cash Flow	-67.00	51.00	43.00	40.00	84.00	61.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	99	146	217	240	154	270	237
Inventory Days						776
Days Payable						942
Cash Conversion Cycle	99	146	217	240	154	104	237
Working Capital Days	10	127	233	288	204	369	272
ROCE %		33%	34%	-1%	8%	8%	10%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	63.99%	63.99%	63.99%	63.99%	63.49%	63.49%	63.49%	63.49%	63.49%	63.49%	63.49%	63.49%
FIIs	5.91%	5.99%	3.71%	2.00%	1.93%	1.58%	1.45%	1.19%	2.18%	2.03%	1.82%	2.11%
Government	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.00%	0.00%	0.00%	0.00%	0.00%
Public	30.08%	30.00%	32.27%	33.99%	34.55%	34.90%	35.04%	35.32%	34.34%	34.47%	34.67%	34.40%
No. of Shareholders	17,605	17,302	17,424	19,043	19,666	19,574	19,387	21,644	25,940	26,355	29,241	28,922

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	5.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	19.56	19.58	22.62	20.25	9.72
Diluted EPS (Rs.)	19.56	19.58	22.62	20.25	9.72
Cash EPS (Rs.)	24.93	48.41	30.10	47.62	1.26
Book Value[Excl.RevalReserv]/Share (Rs.)	238.63	429.62	353.24	331.81	10.39
Book Value[Incl.RevalReserv]/Share (Rs.)	238.63	431.08	353.24	331.81	10.39
Revenue From Operations / Share (Rs.)	66.72	106.67	100.51	60.53	2.73
PBDIT / Share (Rs.)	30.47	44.31	37.31	27.15	1.34
PBIT / Share (Rs.)	25.10	35.06	29.83	-0.21	0.40
PBT / Share (Rs.)	24.03	47.39	28.34	-3.14	0.29
Net Profit / Share (Rs.)	19.56	39.16	22.62	20.25	0.32
NP After MI And SOA / Share (Rs.)	19.35	38.56	22.54	20.24	0.32
PBDIT Margin (%)	45.67	41.54	37.12	44.85	49.07
PBIT Margin (%)	37.62	32.86	29.68	-0.35	14.82
PBT Margin (%)	36.01	44.42	28.20	-5.19	10.74
Net Profit Margin (%)	29.31	36.70	22.50	33.45	11.87
NP After MI And SOA Margin (%)	29.00	36.15	22.42	33.43	11.87
Return on Networth / Equity (%)	8.58	9.03	6.38	6.10	3.11
Return on Capital Employeed (%)	9.50	7.59	8.01	-0.06	3.34
Return On Assets (%)	6.47	7.77	5.72	5.52	2.51
Long Term Debt / Equity (X)	0.06	0.02	0.01	0.01	0.05
Total Debt / Equity (X)	0.10	0.05	0.02	0.01	0.06
Asset Turnover Ratio (%)	0.24	0.23	0.22	0.15	0.00
Current Ratio (X)	3.05	4.69	4.55	3.95	3.79
Quick Ratio (X)	2.82	4.27	3.98	3.40	3.44
Dividend Payout Ratio (NP) (%)	9.55	4.79	6.21	0.00	18.60
Dividend Payout Ratio (CP) (%)	7.48	3.86	4.66	0.00	4.79
Earning Retention Ratio (%)	90.45	95.21	93.79	0.00	81.40
Cash Earning Retention Ratio (%)	92.52	96.14	95.34	0.00	95.21
Interest Coverage Ratio (X)	23.06	27.11	25.04	9.28	12.05
Interest Coverage Ratio (Post Tax) (X)	15.61	16.41	16.18	7.92	3.92
Enterprise Value (Cr.)	2155.71	892.05	730.01	0.00	0.00
EV / Net Operating Revenue (X)	5.05	2.61	2.27	0.00	0.00
EV / EBITDA (X)	11.05	6.29	6.11	0.00	0.00
MarketCap / Net Operating Revenue (X)	4.61	2.51	2.27	0.00	0.00
Retention Ratios (%)	90.44	95.20	93.78	0.00	81.39
Price / BV (X)	1.36	0.62	0.64	0.00	0.00
Price / Net Operating Revenue (X)	4.61	2.51	2.27	0.00	0.00
EarningsYield	0.06	0.14	0.09	0.00	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 554.18

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 21, 2024, is Overvalued by 4.62% compared to the current share price 581.00

Intrinsic Value of as of December 21, 2024 is: 364.84

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 21, 2024, is Overvalued by 37.20% compared to the current share price 581.00

Last 5 Year EPS CAGR: -34.17%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (799.75 cr) compared to borrowings (112.88 cr), indicating strong financial stability. The company has shown consistent growth in sales (307.71 cr) and profit (78.14 cr) over the years.	The stock has a low average ROCE of 13.14%, which may not be favorable. The stock has a high average Working Capital Days of 214.71, which may not be favorable. The stock has a high average Cash Conversion Cycle of 171.00, which may not be favorable.

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
1. Net Profit Margin: 29.31%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 9.5% (Industry Average ROCE: 10.49%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 8.58% (Industry Average ROE: 9.47%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 15.61
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 2.82
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 26.9 (Industry average Stock P/E: 87.77)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.1
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Deep Industries Ltd. is a Public Limited Listed company incorporated on 15/11/2006 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L14292GJ2006PLC049371 and registration number is 049371. Currently company belongs to the Industry of Power - Generation/Distribution. Company’s Total Operating Revenue is Rs. 271.57 Cr. and Equity Capital is Rs. 32.00 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Oil Drilling And Exploration	12A & 14, Abhishree Corporate Park, Ahmedabad Gujarat 380058	info@deepindustries.com http://www.deepindustries.com

Management
Name	Position Held
Mr. Paras Shantilal Savla	Chairman & Managing Director
Mr. Rupesh Kantilal Savla	Managing Director
Mr. Rohan Vasantkumar Shah	Whole Time Director (Finance) & CFO
Dr. Kirit Nanubhai Shelat	Independent Director
Mrs. Ashokkumar Ratilal Patel	Independent Director
Ms. Shaily Dedhia	Independent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹554.18, which is 4.62% lower than the current market price of ₹581.00. The stock has a market capitalization of 3,716 Cr. and recorded a high/low of 620/227 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹1,472 Cr and total liabilities of ₹1,987 Cr.

What is the Market Cap of ?

The Market Cap of is 3,716 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 581.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 620/227.

What is the Stock P/E of ?

The Stock P/E of is 26.9.

What is the Book Value of ?

The Book Value of is 235.

What is the Dividend Yield of ?

The Dividend Yield of is 0.42 %.

What is the ROCE of ?

The ROCE of is 10.3 %.

What is the ROE of ?

The ROE of is 8.73 %.

What is the Face Value of ?

The Face Value of is 5.00.

Share Price and Basic Stock Data

Stock P/E, Current Price, and Intrinsic Value Over Time

Competitors of

Quarterly Result

Quarterly Chart

Profit & Loss - Annual Report

Profit & Loss Yearly Chart

YoY Net Profit Growth

Growth

Balance Sheet

Reserves and Borrowings Chart

Cash Flow

Free Cash Flow

Free Cash Flow Chart

Financial Efficiency Indicators

Financial Efficiency Indicators Chart

Share Holding Pattern

Shareholding Pattern Chart

No. of Shareholders

ROCE Trend

EPS Trend

Key Financial Ratios

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Strength and Weakness

About the Company - Qualitative Analysis

FAQ

What is the latest intrinsic value of ?

What is the Market Cap of ?

What is the current Stock Price of as on 21 December 2024?

What is the High / Low of stocks in FY 2024-2025?

What is the Stock P/E of ?

What is the Book Value of ?

What is the Dividend Yield of ?

What is the ROCE of ?

What is the ROE of ?

What is the Face Value of ?

About the Author

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