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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Deepak Nitrite Ltd

About the Company - Deepak Nitrite Ltd

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 - OthersAaditya-I, Vadodra Gujarat 390024investor@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. Sandesh Kumar AnandNon Executive Director
Mr. Meghav MehtaNon Executive Director
Mr. Prakash Dinkar SamudraIndependent Director
Mr. Vipul Shantilal ShahIndependent Director
Mr. Punit Sanjay LalbhaiIndependent Director
Ms. Purvi ShethIndependent Director
Mr. Sanjay AsherIndependent Director
Mr. Dileep ChoksiIndependent Director

Basic Stock Data of Deepak Nitrite Ltd

Last Updated: May 15, 2024, 7:45 am

Market Cap 33,780 Cr.
Current Price 2,475
High / Low2,620/1,900
Stock P/E42.7
Book Value 318
Dividend Yield0.30 %
ROCE29.7 %
ROE22.7 %
Face Value 2.00
PEG Ratio7.78

Deepak Nitrite Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,2351,4631,5261,6811,7221,8722,0581,9621,9911,9611,7681,7782,009
Expenses9001,0091,0751,2951,3701,4621,7021,6911,6761,6131,5591,4761,705
Operating Profit335455452387352410356271315348210302305
OPM %27%31%30%23%20%22%17%14%16%18%12%17%15%
Other Income568826410121313321714
Interest1614119779664233
Depreciation34564444454542424141383942
Profit before tax290390405342325362315235281315202277274
Tax %25%26%25%26%25%26%26%26%26%26%26%26%26%
Net Profit217290303254242267235174209234150205202
EPS in Rs15.8821.2722.1918.6517.7819.5917.2012.7915.3317.1510.9915.0414.81

Last Updated: May 6, 2024, 6:00 pm

Deepak Nitrite Ltd Quarterly Chart

Deepak Nitrite Ltd Profit & Loss

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,3271,3731,3711,6512,7004,2304,3606,8027,9727,499
Expenses1,1871,2041,2311,4472,2783,1943,1085,1966,6806,324
Operating Profit1401691392044211,0351,2521,6071,2921,175
OPM %11%12%10%12%16%24%29%24%16%16%
Other Income1-0807112920424675
Interest384037478711877362715
Depreciation3640485378140153178166160
Profit before tax67891351112688061,0421,4341,1461,075
Tax %21%29%28%29%35%24%26%26%26%
Net Profit536396791746117761,067852798
EPS in Rs5.065.397.375.7912.7344.8056.8878.2062.4758.51
Dividend Payout %20%22%16%22%16%10%10%9%12%

Deepak Nitrite Ltd Profit & Loss Yearly Chart

Deepak Nitrite Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:37%
3 Years:24%
TTM:-5%
Compounded Profit Growth
10 Years:%
5 Years:59%
3 Years:11%
TTM:-11%
Stock Price CAGR
10 Years:47%
5 Years:54%
3 Years:14%
1 Year:25%
Return on Equity
10 Years:%
5 Years:32%
3 Years:32%
Last Year:23%

Last Updated: April 9, 2024, 8:58 am

Deepak Nitrite Ltd Balance Sheet

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital21232627272727272727
Reserves3254506898951,0441,5452,3193,3114,0634,315
Borrowings5455297249871,1871,1075903157367
Other Liabilities235295350684677538630779967859
Total Liabilities1,1251,2961,7892,5922,9353,2173,5674,4325,1295,268
Fixed Assets5495945865881,7161,8321,8641,9631,9421,991
CWIP443634995534172220122301479
Investments3871183222189439379521
Other Assets5305807361,0181,1831,2101,2931,9082,5082,277
Total Assets1,1251,2961,7892,5922,9353,2173,5674,4325,1295,268

Deepak Nitrite Ltd Reserves and Borrowings Chart

Deepak Nitrite Ltd Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 10816749183607651,002824650
Cash from Investing Activity -89-169-353-525-163-428-396-424-276
Cash from Financing Activity -22430534596-338-599-386-359
Net Cash Flow-3214-6-171415

Deepak Nitrite Ltd Financial Efficiency Indicators

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days868396917853636160
Inventory Days4754751189463645362
Days Payable48599517610657724646
Cash Conversion Cycle857976326659566776
Working Capital Days604351447055626371
ROCE %14%8%10%17%38%40%44%30%

Deepak Nitrite Ltd Financial Efficiency Indicators Chart

Deepak Nitrite Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters45.69%45.69%45.69%45.72%45.72%45.71%45.71%49.13%49.13%49.13%49.13%49.13%
FIIs11.43%10.85%8.84%8.76%9.07%8.45%8.72%7.72%8.09%6.47%6.48%6.72%
DIIs10.41%10.61%10.74%10.03%10.72%12.01%13.75%15.06%15.61%17.96%18.87%19.27%
Public32.47%32.85%34.73%35.50%34.50%33.82%31.81%28.10%27.16%26.45%25.52%24.87%
No. of Shareholders3,06,0983,74,9625,36,0746,39,6906,70,1026,91,7286,40,7496,49,0466,12,8695,72,5625,34,1155,02,250

Deepak Nitrite Ltd Shareholding Pattern Chart

No. of Deepak Nitrite Ltd Shareholders

Deepak Nitrite Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Motilal Oswal Midcap Fund18250005.98362.58
Motilal Oswal Flexi Cap Fund16000003.92317.88
Franklin India Smaller Companies Fund13879672.85275.75
Franklin India Prima Fund10501232.45208.63
Nippon India Small Cap Fund10000000.53198.68
Franklin India Focused Equity Fund7677691.65152.54
Nippon India Growth Fund5937780.62117.97
Canara Robeco Small Cap Fund3451750.8768.58
Kotak Equity Arbitrage Fund - Regular Plan3414000.2367.83
Bandhan Sterling Value Fund3000000.8959.6

Deepak Nitrite Ltd ROCE Trend

Deepak Nitrite Ltd EPS Trend

Deepak Nitrite Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)62.4678.2056.8844.8012.73
Diluted EPS (Rs.)62.4678.2056.8844.8012.73
Cash EPS (Rs.)74.6691.2368.0755.0418.44
Book Value[Excl.RevalReserv]/Share (Rs.)299.85244.75172.04115.2478.57
Book Value[Incl.RevalReserv]/Share (Rs.)299.85244.75172.04115.2478.57
Revenue From Operations / Share (Rs.)584.46498.69319.63310.10197.95
PBDIT / Share (Rs.)98.02120.6993.0077.7931.45
PBIT / Share (Rs.)85.83107.6681.8167.5425.75
PBT / Share (Rs.)84.01105.1676.3759.1219.65
Net Profit / Share (Rs.)62.4678.2056.8844.8012.73
NP After MI And SOA / Share (Rs.)62.4678.2056.8844.8012.73
PBDIT Margin (%)16.7724.2029.0925.0815.88
PBIT Margin (%)14.6821.5825.5921.7813.00
PBT Margin (%)14.3721.0823.8919.069.92
Net Profit Margin (%)10.6815.6817.7914.446.43
NP After MI And SOA Margin (%)10.6815.6817.7914.446.43
Return on Networth / Equity (%)20.8331.9533.0638.8716.20
Return on Capital Employeed (%)27.0039.8637.1137.4517.18
Return On Assets (%)16.6124.0721.7919.045.93
Long Term Debt / Equity (X)0.010.050.220.490.81
Total Debt / Equity (X)0.010.090.240.651.05
Asset Turnover Ratio (%)0.810.800.670.890.81
Current Ratio (X)3.453.062.621.541.31
Quick Ratio (X)2.332.281.931.020.84
Inventory Turnover Ratio (X)3.814.203.023.204.19
Dividend Payout Ratio (NP) (%)11.207.030.0014.5010.21
Dividend Payout Ratio (CP) (%)9.376.020.0011.807.05
Earning Retention Ratio (%)88.8092.970.0085.5089.79
Cash Earning Retention Ratio (%)90.6393.980.0088.2092.95
Interest Coverage Ratio (X)53.9548.3617.109.245.15
Interest Coverage Ratio (Post Tax) (X)35.3832.3311.466.323.09
Enterprise Value (Cr.)25144.1830869.1023144.916269.674844.50
EV / Net Operating Revenue (X)3.154.545.311.481.79
EV / EBITDA (X)18.8118.7518.255.9111.29
MarketCap / Net Operating Revenue (X)3.154.505.181.251.39
Retention Ratios (%)88.7992.960.0085.4989.78
Price / BV (X)6.149.179.633.353.50
Price / Net Operating Revenue (X)3.154.505.181.251.39
EarningsYield0.030.030.030.110.04

Deepak Nitrite Ltd Profitability Ratios (%)

Deepak Nitrite Ltd Liquidity Ratios

Deepak Nitrite Ltd Liquidity Ratios (%)

Deepak Nitrite Ltd Interest Coverage Ratios (%)

Deepak Nitrite Ltd Valuation Ratios

Fair Value

Fair Value: ₹3,091.59

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.

Undervalued: 24.91% compared to the current price ₹2475

Intrinsic Value: ₹3,261.16

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 31.76% compared to the current price ₹2475

Last 5 Year EPS CAGR: 5.48%

*Investments are subject to market risks

Strength and Weakness of Deepak Nitrite Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 22.33%, which is a positive sign.
  2. The company has higher reserves (1,895.60 cr) compared to borrowings (612.40 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.40 cr) and profit (148.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 57.67, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 66.22, which may not be favorable.

FAQ

What is the latest fair value of Deepak Nitrite Ltd?

The latest fair value of Deepak Nitrite Ltd is ₹3091.59.

What is the Market Cap of Deepak Nitrite Ltd?

The Market Cap of Deepak Nitrite Ltd is 33,780 Cr..

What is the current Stock Price of Deepak Nitrite Ltd as on 18 May 2024?

The current stock price of Deepak Nitrite Ltd as on 18 May 2024 is 2,475.

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 ₹2,620/1,900.

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

The Stock P/E of Deepak Nitrite Ltd is 42.7.

What is the Book Value of Deepak Nitrite Ltd?

The Book Value of Deepak Nitrite Ltd is 318.

What is the Dividend Yield of Deepak Nitrite Ltd?

The Dividend Yield of Deepak Nitrite Ltd is 0.30 %.

What is the ROCE of Deepak Nitrite Ltd?

The ROCE of Deepak Nitrite Ltd is 29.7 %.

What is the ROE of Deepak Nitrite Ltd?

The ROE of Deepak Nitrite Ltd is 22.7 %.

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