Deepak Nitrite (DEEPAKNTR)

FairStock Score: 65/100 — STEADY

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

Key Financials

AI Analysis

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

As a Buffett-Graham investor, I ask first about durable competitive advantage and balance sheet. Deepak Nitrite shows a specialty chemicals franchise with ROCE 16.28%, debt/equity 0.28, Piotroski 8/9, Altman 3.79—no distress. Promoter holding 49.33% aligns. Latest quarter sales ₹1,975 Cr and net profit ₹100 Cr; five-year revenue CAGR 14.38% gives some growth. But the headline sales growth 315.94% and profit growth 999% look base-effect or cyclical, not a durable trend I can underwrite. ROE 9.89% is modest for a quality specialty chemical business. The moat may be process chemistry and customer stickiness, but that is not enough to ignore price. At ₹1,723.20, market cap ₹23,503 Cr, P/E 30.03, P/B 4.03, and BV ₹427.94, I am paying a premium. The 52-week range ₹1,280 to ₹1,895 shows the market has already recognized much of the story. Graham Number is ₹589.48, meaning margin of safety is -168.15%—the opposite of Graham's requirement. EV/EBITDA 94.84 is staggeringly high. Free cash flow is negative ₹864 Cr, so I want to know whether capex will earn high returns. Dividend yield 0.44% offers little cash return. FairStock Score 65/100 and STEADY confirms not a bargain. Category likely Cyclical: chemicals can boom and bust. I would watch ROCE, FCF, EV/EBITDA, and margin sustainability before buying. I prefer wonderful businesses at fair prices; this looks like a good-to-steady business at a rich price.

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