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Check Before You Invest : Deepak Chemtex Ltd

BSE: 544036 NSE: ISIN: INE0RDM01013
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Deepak Chemtex Ltd belong to?
Deepak Chemtex Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Deepak Chemtex Ltd a good quality company?
Deepak Chemtex Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Deepak Chemtex Ltd undervalued or overvalued?
Deepak Chemtex Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Deepak Chemtex Ltd a good buy now?
Deepak Chemtex Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Deepak Chemtex Ltd?
Deepak Chemtex Ltd revenue growth is 34.9% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of Deepak Chemtex Ltd?
Deepak Chemtex Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.6% for FY-2025 , which is above its 5 year median of 19% , indicating increasing margins.
Q.3 Operating Profit Margin of Deepak Chemtex Ltd?
Deepak Chemtex Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.24% for FY-2025 , which is above its 5 year median of 16.7% indicating increasing margins.
Q.4 Net Profit Margin of Deepak Chemtex Ltd?
Deepak Chemtex Ltd Net Profit Margin is 14.81% for FY-2025 , is above with its 5 year median of 13.16%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 22.6 19
Operating Profit Margin 19.24 16.7
Net Profit Margin 14.81 13.16
Q.5 Return on Asset of Deepak Chemtex Ltd?
Deepak Chemtex Ltd Return on Asset is 17.56%, which is below its 5 year historical median of 23.8%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Deepak Chemtex Ltd?
Deepak Chemtex Ltd Return on equity is 20.94% for FY-2025 , which is below its historical median of 48.62%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Deepak Chemtex Ltd?
Deepak Chemtex Ltd Return on capital employed is 28.34% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Deepak Chemtex Ltd?
Deepak Chemtex Ltd Cash conversion cycle is 81 days, above its historical median of 66 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.19 2.28
ROE 20.94 48.62
ROCE 28.34 55.72
Cash Conversion Cycle 81 days 66 days
Q.9 Debt to Equity ratio of Deepak Chemtex Ltd?
Deepak Chemtex Ltd Debt-to-Equity ratio is 0.02 , which is lower with the industry average of 0.13 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Deepak Chemtex Ltd?
Deepak Chemtex Ltd Debt to cash flow from operations is 0.08 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Deepak Chemtex Ltd?
Promoters hold 73.05% of the Deepak Chemtex Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Deepak Chemtex Ltd vs industry peers?
Deepak Chemtex Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 7.7% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 68 202
Gross Profit 15.4 23.6
Operating Profit 13.1 24
Net Profit 10.1 12
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.19 0.93
ROE 20.94 10.18
ROCE 28.34 13.07
Cash Conversion Cycle (days) 80.74 62

Valuation & price assessment

Q.1 Stock return of Deepak Chemtex Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -21.54% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -21.5%
Q.3 Valuation ratios of Deepak Chemtex Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 9.82 25.21 41.15
Price to Book 1.85 3.92 2.38
Price to Sales 1.45 3.32 1.93
EV to EBITDA 6.09 15.32 13.71

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