Deepak Fertilis. (DEEPAKFERT)

FairStock Score: 55/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Looking at Deepak Fertilisers, I see a commodity chemicals business with some strengths: five-year revenue CAGR of 17.01%, ROE 14.03%, ROCE 15.67%, and Piotroski F-Score 7/9. Free cash flow of ₹818 Cr is real, and promoter holding of 45.63% aligns management. But the latest numbers are sobering: sales growth -13.16%, profit growth -21.31%, and latest quarter net profit ₹141 Cr on sales ₹2,830 Cr. Debt/equity 0.76 is manageable but not fortress-like. As a cyclical chemical producer, pricing power is limited; I do not see a durable moat. Valuation is the rub. At ₹1,496.40, market cap ₹18,909 Cr, P/E 19.19, P/B 2.76, the stock is not statistically cheap. Graham Number is ₹884.37, so price is above it and the stated margin of safety is -12.62%. DCF intrinsic value of ₹66.55 and EV/EBITDA of 171.44 suggest the market is pricing something much rosier than current cash flows. Dividend yield 0.69% gives little income cushion. The 52-week range ₹866.40-₹1,681 shows volatility; FairStock score 55/100 steady. So I would call it a Cyclical. I would wait for Mr. Market to offer a discount, or for profit growth to turn. A 14% ROE with 0.76 debt is acceptable, but not at this price without margin of safety. Watch sales and profit recovery, debt reduction, and commodity spreads. In Graham's terms, the numbers do not compensate for the cyclical risk, and I prefer a wider cushion before buying.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer