Deepak Fertilis. (DEEPAKFERT)
CyclicalFairStock Score: 55/100 — STEADY
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,496.4 |
| Market Cap | ₹18,909.31 Cr |
| P/E Ratio | 19.19 |
| ROCE | 15.67% |
| ROE | 14.03% |
| Dividend Yield | 0.69% |
| Profit Growth | -21.31% |
| Debt/Equity | 0.76 |
| Sales Growth | -13.16% |
| Free Cash Flow | ₹818 Cr |
| Promoter Holding | 45.63% |
| 52-Week Range | ₹866.4 — ₹1,681 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹542.11 |
Strengths
- 5-year revenue CAGR of 12.08% with latest sales growth of 15.15% shows solid top-line momentum.
- ROE of 14.03% and ROCE of 15.67% indicate efficient capital deployment.
- Positive free cash flow of ₹818 Cr supports financial resilience.
- Piotroski F-Score of 7/9 signals healthy fundamentals; promoter holding of 45.63% aligns interests.
Concerns
- Profit growth of -0.72% despite 15.15% sales growth points to margin compression.
- EV/EBITDA of 171.44 is extremely high, suggesting stretched valuation or depressed earnings.
- DCF intrinsic value of ₹66.55 is far below the current price of ₹1,253.40.
- Altman Z-Score of 2.39 places the company in a grey zone, warranting caution.
AI Analysis
At first glance, Deepak Fertilis has the numbers Graham would want me to check: a P/E of 14.37, a reasonable 0.68 debt-to-equity, and a Piotroski score of 7 out of 9. But I never buy a business just because the financial statements look tidy. I buy it because it can earn more tomorrow than it does today. Here, sales grew 15.15% in the latest year and the five-year revenue CAGR is 12.08%, so the top line has momentum. Yet profit fell 0.72%. That tells me the company is not translating growing sales into growing earnings. In commodity chemicals, that is a red flag: when input costs rise or selling prices fall, the margin gets squeezed. The ROE of 14.03% and ROCE of 15.67% are decent, but not exceptional, and they hardly justify a price of ₹1,253.40 against a Graham Number of ₹884.37. There is a margin of safety of -12.62%, meaning I am paying more than a conservative valuation. The DCF intrinsic value of ₹66.55 is far below the market price, and an EV/EBITDA of 171.44 is absurd; it suggests either earnings are temporarily depressed or the market has overpaid. Free cash flow of ₹818 Cr is a positive, and the 45.63% promoter holding gives some comfort. But in cyclical businesses, the best time to buy is when pessimism is high and earnings are depressed, not when sales are growing but profits are flat. I would wait for a better price or evidence that margins can recover.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer