We have analysed the performance of the company on the following:
-
How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
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How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
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How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.
A: What are the trends in revenue and profit margins?
Q.1
Revenue growth of Deepak Fertilisers And Petrochemicals Corporation Ltd?
Deepak Fertilisers And Petrochemicals Corporation Ltd revenue growth is 1.5% for FY-2025, which is below its 5-year CAGR of 2.7%, indicating slower growth.
Q.2
Gross Profit margin of Deepak Fertilisers And Petrochemicals Corporation Ltd?
Deepak Fertilisers And Petrochemicals Corporation Ltd Gross profit margin which is the profit after deduction of direct costs, is 28.4% for FY-2025, which is above its 5-year median of 18.8%, indicating increasing margins.
Q.3
Operating Profit Margin of Deepak Fertilisers And Petrochemicals Corporation Ltd?
Deepak Fertilisers And Petrochemicals Corporation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.02% for FY-2025, which is above its 5-year median of 17.4% indicating increasing margins.
Q.4
Net Profit Margin of Deepak Fertilisers And Petrochemicals Corporation Ltd?
Deepak Fertilisers And Petrochemicals Corporation Ltd Net Profit Margin is 21.17% for FY-2025, is above its 5-year median of 12.4%, indicating increasing margins.
|
Current Level |
5-year
Historic Median |
|
Gross Profit Margin (%) |
28.4 |
18.8 |
|
Operating Profit Margin (%) |
20.02 |
17.4 |
|
Net Profit Margin (%) |
21.17 |
12.4 |
B: Does the business utilize capital efficiently?
Q.5
Return on Asset of Deepak Fertilisers And Petrochemicals Corporation Ltd?
Deepak Fertilisers And Petrochemicals Corporation Ltd Return on Asset is 9.77%, which is above its 5-year historical median of 7.63%, indicating improved asset utilization efficiency.
Q.6
Return on capital employed (ROCE) of Deepak Fertilisers And Petrochemicals Corporation Ltd?
Deepak Fertilisers And Petrochemicals Corporation Ltd Return on capital employed is 15.13% for FY-2025, which is above its 5-year historical median of 13.34%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.
Q.7
Return on Equity (ROE) of Deepak Fertilisers And Petrochemicals Corporation Ltd?
Deepak Fertilisers And Petrochemicals Corporation Ltd Return on equity is 12.4% for FY-2025, which is above its 5-year historical median of 10.18%, indicating the business is making better use of its shareholders capital.
Q.8
Cash conversion cycle of Deepak Fertilisers And Petrochemicals Corporation Ltd?
Deepak Fertilisers And Petrochemicals Corporation Ltd Cash conversion cycle is 27 days, above its 5-year historical median of 11 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
|
Current Level |
5-year
Historic Median |
|
Asset Turnover (x) |
0.5 |
0.59 |
|
ROE (%) |
12.4 |
10.18 |
|
ROCE (%) |
15.13 |
13.34 |
|
Cash Conversion Cycle |
27 days |
11 days |
C: How much debt does the business have and is it at a sustainable level?
Q.9
Debt to Equity ratio of Deepak Fertilisers And Petrochemicals Corporation Ltd?
Deepak Fertilisers And Petrochemicals Corporation Ltd Debt-to-Equity ratio is 0.11, which is lower the industry average of 0.13, indicating lower debt levels in the industry.
Q.10
Debt to cash flow from operations of Deepak Fertilisers And Petrochemicals Corporation Ltd?
Deepak Fertilisers And Petrochemicals Corporation Ltd Debt to cash flow from operations is 1.54, which is at a moderate level.
