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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 506401 | NSE: DEEPAKNTR

Deepak Nitrite Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 11, 2024, 12:51 pm

Market Cap 35,780 Cr.
Current Price 2,623
High / Low3,169/2,021
Stock P/E44.4
Book Value 352
Dividend Yield0.28 %
ROCE21.6 %
ROE16.4 %
Face Value 2.00
PEG Ratio20.51

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

View Share Price Target for Deepak Nitrite Ltd

Competitors of Deepak Nitrite Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Fischer Medical Ventures Ltd 3,472 Cr. 649793/85.61,887 15.00.00 %5.30 %4.60 % 10.0
Emmessar Biotech & Nutrition Ltd 25.7 Cr. 51.364.0/23.329.5 15.60.00 %11.4 %10.6 % 10.0
Cochin Minerals & Rutile Ltd 284 Cr. 362415/23917.5 1982.21 %26.6 %5.82 % 10.0
Archean Chemical Industries Ltd 8,391 Cr. 680838/51631.7 1430.44 %25.8 %19.4 % 2.00
Alufluoride Ltd 348 Cr. 445587/34118.2 1220.67 %25.1 %22.2 % 10.0
Industry Average6,680.13 Cr607.08227.38139.550.41%15.23%10.71%7.82

All Competitor Stocks of Deepak Nitrite Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,5261,6811,7221,8722,0581,9621,9911,9611,7681,7782,0092,1262,167
Expenses1,0751,2951,3701,4621,7021,6911,6761,6131,5591,4761,7051,8251,858
Operating Profit452387352410356271315348210302305301309
OPM %30%23%20%22%17%14%16%18%12%17%15%14%14%
Other Income88264101213133217149919
Interest11977966423346
Depreciation44444545424241413839424647
Profit before tax405342325362315235281315202277274349275
Tax %25%26%25%26%26%26%26%26%26%26%26%27%26%
Net Profit303254242267235174209234150205202254203
EPS in Rs22.1918.6517.7819.5917.2012.7915.3317.1510.9915.0414.8118.6114.85

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,3271,3731,3711,6512,7004,2304,3606,8027,9727,6828,080
Expenses1,1871,2041,2311,4472,2783,1943,1085,1966,6806,5556,863
Operating Profit1401691392044211,0351,2521,6071,2921,1271,217
OPM %11%12%10%12%16%24%29%24%16%15%15%
Other Income1-08071129204246156148
Interest38403747871187736271516
Depreciation3640485378140153178166166175
Profit before tax67891351112688061,0421,4341,1461,1021,175
Tax %21%29%28%29%35%24%26%26%26%26%
Net Profit536396791746117761,067852811864
EPS in Rs5.065.397.375.7912.7344.8056.8878.2062.4759.4563.31
Dividend Payout %20%22%16%22%16%10%10%9%12%13%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)18.87%52.38%-17.71%120.25%251.15%27.00%37.50%-20.15%-4.81%
Change in YoY Net Profit Growth (%)0.00%33.51%-70.09%137.96%130.90%-224.14%10.50%-57.65%15.34%

Deepak Nitrite Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2015-2016 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:23%
3 Years:21%
TTM:11%
Compounded Profit Growth
10 Years:%
5 Years:33%
3 Years:-2%
TTM:0%
Stock Price CAGR
10 Years:40%
5 Years:48%
3 Years:2%
1 Year:18%
Return on Equity
10 Years:%
5 Years:28%
3 Years:24%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital21232627272727272727
Reserves3254506898951,0441,5452,3193,3114,0634,769
Borrowings5455297249871,1871,10759031573286
Other Liabilities2352953506846775386307799671,012
Total Liabilities1,1251,2961,7892,5922,9353,2173,5674,4325,1296,095
Fixed Assets5495945865881,7161,8321,8641,9631,9422,293
CWIP443634995534172220122301774
Investments3871183222189439379122
Other Assets5305807361,0181,1831,2101,2931,9082,5082,907
Total Assets1,1251,2961,7892,5922,9353,2173,5674,4325,1296,095

Reserves and Borrowings Chart

Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 10816749183607651,002824650878
Cash from Investing Activity -89-169-353-525-163-428-396-424-276-721
Cash from Financing Activity -22430534596-338-599-386-35944
Net Cash Flow-3214-6-171415200

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-405.00-360.00-585.00-783.00420.000.00-589.00-314.00-72.00-285.00

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

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days86839691785363616062
Inventory Days475475118946364536254
Days Payable4859951761065772464641
Cash Conversion Cycle85797632665956677674
Working Capital Days60435144705562637170
ROCE %14%8%10%17%38%40%44%30%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters45.69%45.72%45.72%45.71%45.71%49.13%49.13%49.13%49.13%49.13%49.24%49.24%
FIIs8.84%8.76%9.07%8.45%8.72%7.72%8.09%6.47%6.48%6.72%6.86%6.68%
DIIs10.74%10.03%10.72%12.01%13.75%15.06%15.61%17.96%18.87%19.27%21.20%22.30%
Public34.73%35.50%34.50%33.82%31.81%28.10%27.16%26.45%25.52%24.87%22.70%21.79%
No. of Shareholders5,36,0746,39,6906,70,1026,91,7286,40,7496,49,0466,12,8695,72,5625,34,1155,02,2504,51,1984,22,398

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Midcap Fund1,500,0002.97375.29900,0002024-11-1266.67%
Franklin India Smaller Companies Fund1,387,9672.48347.26900,0002024-11-1254.22%
Franklin India Prima Fund1,100,1232.29275.25900,0002024-11-1222.24%
Nippon India Small Cap Fund1,000,0000.44250.2900,0002024-11-1211.11%
Motilal Oswal Flexi Cap Fund900,0002.02225.18900,0002024-11-120%
Franklin India Focused Equity Fund767,7691.57192.09900,0002024-11-12-14.69%
Mirae Asset Large & Midcap Fund747,8240.49187.1900,0002024-11-12-16.91%
Nippon India Growth Fund593,7780.48148.56900,0002024-11-12-34.02%
Sundaram Mid Cap Fund517,1741.09129.39900,0002024-11-12-42.54%
Sundaram Mid Cap Fund - Institutional Plan517,1741.09129.39900,0002024-11-12-42.54%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)59.4562.4678.2056.8844.80
Diluted EPS (Rs.)59.4562.4678.2056.8844.80
Cash EPS (Rs.)71.5974.6691.2368.0755.04
Book Value[Excl.RevalReserv]/Share (Rs.)353.57299.85244.75172.04115.24
Book Value[Incl.RevalReserv]/Share (Rs.)353.57299.85244.75172.04115.24
Revenue From Operations / Share (Rs.)563.18584.46498.69319.63310.10
PBDIT / Share (Rs.)87.9398.02120.6993.0077.79
PBIT / Share (Rs.)75.7985.83107.6681.8167.54
PBT / Share (Rs.)80.7784.01105.1676.3759.12
Net Profit / Share (Rs.)59.4562.4678.2056.8844.80
NP After MI And SOA / Share (Rs.)59.4562.4678.2056.8844.80
PBDIT Margin (%)15.6116.7724.2029.0925.08
PBIT Margin (%)13.4514.6821.5825.5921.78
PBT Margin (%)14.3414.3721.0823.8919.06
Net Profit Margin (%)10.5510.6815.6817.7914.44
NP After MI And SOA Margin (%)10.5510.6815.6817.7914.44
Return on Networth / Equity (%)16.9020.8331.9533.0638.87
Return on Capital Employeed (%)19.4627.0039.8637.1137.45
Return On Assets (%)13.3016.6124.0721.7919.04
Long Term Debt / Equity (X)0.040.010.050.220.49
Total Debt / Equity (X)0.040.010.090.240.65
Asset Turnover Ratio (%)1.370.810.800.670.89
Current Ratio (X)3.623.453.062.621.54
Quick Ratio (X)2.652.332.281.931.02
Inventory Turnover Ratio (X)6.673.814.203.023.20
Dividend Payout Ratio (NP) (%)12.6111.207.030.0014.50
Dividend Payout Ratio (CP) (%)10.479.376.020.0011.80
Earning Retention Ratio (%)87.3988.8092.970.0085.50
Cash Earning Retention Ratio (%)89.5390.6393.980.0088.20
Interest Coverage Ratio (X)101.3853.9548.3617.109.24
Interest Coverage Ratio (Post Tax) (X)62.8035.3832.3311.466.32
Enterprise Value (Cr.)28716.8625144.1830869.1023144.916269.67
EV / Net Operating Revenue (X)3.743.154.545.311.48
EV / EBITDA (X)23.9418.8118.7518.255.91
MarketCap / Net Operating Revenue (X)3.773.154.505.181.25
Retention Ratios (%)87.3888.7992.960.0085.49
Price / BV (X)6.036.149.179.633.35
Price / Net Operating Revenue (X)3.773.154.505.181.25
EarningsYield0.020.030.030.030.11

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Deepak Nitrite Ltd as of November 14, 2024 is: 2,570.30

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 November 14, 2024, Deepak Nitrite Ltd is Overvalued by 2.01% compared to the current share price 2,623.00

Intrinsic Value of Deepak Nitrite Ltd as of November 14, 2024 is: 2,625.95

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 November 14, 2024, Deepak Nitrite Ltd is Undervalued by 0.11% compared to the current share price 2,623.00

Last 5 Year EPS CAGR: 2.17%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 22.30%, which is a positive sign.
  2. The company has higher reserves (1,941.00 cr) compared to borrowings (634.30 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.82 cr) and profit (134.64 cr) over the years.
  1. The stock has a high average Working Capital Days of 58.90, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 67.00, which may not be favorable.

Stock Analysis

  • 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 Deepak Nitrite Ltd:
    1. Net Profit Margin: 10.55%
      • 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: 19.46% (Industry Average ROCE: 15.23%)
      • 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%: 16.9% (Industry Average ROE: 10.71%)
      • 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): 62.8
      • 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: 2.65
      • 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: 44.4 (Industry average Stock P/E: 227.38)
      • 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: 0.04
      • 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

Deepak Nitrite Ltd. is a Public Limited Listed company incorporated on 06/06/1970 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24110GJ1970PLC001735 and registration number is 001735. Currently Company is involved in the business activities of Manufacture of chemicals and chemical products. Company’s Total Operating Revenue is Rs. 2511.05 Cr. and Equity Capital is Rs. 27.28 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Inorganic - Others2nd Floor, Fermenter House, Alembic City, Vadodra Gujarat 390003investor@godeepak.com
http://www.godeepak.com
Management
NamePosition Held
Mr. Deepak C MehtaChairman & Managing Director
Mr. Maulik D MehtaExecutive Director & CEO
Mr. Sanjay UpadhyayDirector & Group CFO
Mr. Ajay C MehtaNon Executive Director
Mr. Meghav MehtaNon Executive Director
Mr. Girish SatarkarExecutive Director
Mr. Prakash SamudraIndependent Director
Mr. Vipul ShahIndependent Director
Mr. Punit LalbhaiIndependent Director
Mrs. Purvi ShethIndependent Director
Mr. Sanjay AsherIndependent Director
Mr. Dileep ChoksiIndependent Director

FAQ

What is the latest intrinsic value of Deepak Nitrite Ltd?

The latest intrinsic value of Deepak Nitrite Ltd as on 13 November 2024 is ₹2570.30, which is 2.01% lower than the current market price of ₹2,623.00.

What is the Market Cap of Deepak Nitrite Ltd?

The Market Cap of Deepak Nitrite Ltd is 35,780 Cr..

What is the current Stock Price of Deepak Nitrite Ltd as on 13 November 2024?

The current stock price of Deepak Nitrite Ltd as on 13 November 2024 is ₹2,623.

What is the High / Low of Deepak Nitrite Ltd stocks in FY 2024?

In FY 2024, the High / Low of Deepak Nitrite Ltd stocks is 3,169/2,021.

What is the Stock P/E of Deepak Nitrite Ltd?

The Stock P/E of Deepak Nitrite Ltd is 44.4.

What is the Book Value of Deepak Nitrite Ltd?

The Book Value of Deepak Nitrite Ltd is 352.

What is the Dividend Yield of Deepak Nitrite Ltd?

The Dividend Yield of Deepak Nitrite Ltd is 0.28 %.

What is the ROCE of Deepak Nitrite Ltd?

The ROCE of Deepak Nitrite Ltd is 21.6 %.

What is the ROE of Deepak Nitrite Ltd?

The ROE of Deepak Nitrite Ltd is 16.4 %.

What is the Face Value of Deepak Nitrite Ltd?

The Face Value of Deepak Nitrite Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Deepak Nitrite Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE