Check Before You Invest : Deepak Nitrite Ltd

Q: Which industry/sub-sector does Deepak Nitrite Ltd belong to?

Deepak Nitrite Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q: Is Deepak Nitrite Ltd a good quality company?

Deepak Nitrite Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Deepak Nitrite Ltd undervalued or overvalued?

Deepak Nitrite Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 47.98, Historic Median: 35.73. Price to Book, Current: 4.56, Historic Median: 6.64. Price to Sales, Current: 3.22, Historic Median: 3.66. EV to EBITDA, Current: 26.77, Historic Median: 23.43

Q: Is Deepak Nitrite Ltd a good buy now?

Deepak Nitrite Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Deepak Nitrite Ltd?

Deepak Nitrite Ltd revenue growth is 7.8% for FY-2025, which is below its 5-year CAGR of 14.38%, indicating slower growth.

Q: Gross Profit margin of Deepak Nitrite Ltd?

Deepak Nitrite Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.8% for FY-2025, which is below its 5-year median of 16.3%, indicating decreasing margins.

Q: Operating Profit Margin of Deepak Nitrite Ltd?

Deepak Nitrite Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.28% for FY-2025, which is below its 5-year median of 16.21% indicating decreasing margins.

Q: Net Profit Margin of Deepak Nitrite Ltd?

Deepak Nitrite Ltd Net Profit Margin is 8.42% for FY-2025, is below its 5-year median of 10.69%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 13.8, Historic Median: 16.3. Operating Profit Margin (%), Current: 13.28, Historic Median: 16.21. Net Profit Margin (%), Current: 8.42, Historic Median: 10.69

Q: Return on Asset of Deepak Nitrite Ltd?

Deepak Nitrite Ltd Return on Asset is 10.11%, which is below its 5-year historical median of 17.83%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Deepak Nitrite Ltd?

Deepak Nitrite Ltd Return on capital employed is 17% for FY-2025, which is below its 5-year historical median of 30.13%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Deepak Nitrite Ltd

Snapshot

Q.1 Which industry/sub-sector does Deepak Nitrite Ltd belong to?

Deepak Nitrite Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Deepak Nitrite Ltd a good quality company?

Deepak Nitrite Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Deepak Nitrite Ltd undervalued or overvalued?

Deepak Nitrite Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	47.98	35.73
Price to Book	4.56	6.64
Price to Sales	3.22	3.66
EV to EBITDA	26.77	23.43

Q.4 Is Deepak Nitrite Ltd a good buy now?

Deepak Nitrite Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

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.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
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 Nitrite Ltd?

Deepak Nitrite Ltd revenue growth is 7.8% for FY-2025, which is below its 5-year CAGR of 14.38%, indicating slower growth.

Q.2 Gross Profit margin of Deepak Nitrite Ltd?

Deepak Nitrite Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.8% for FY-2025, which is below its 5-year median of 16.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Deepak Nitrite Ltd?

Deepak Nitrite Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.28% for FY-2025, which is below its 5-year median of 16.21% indicating decreasing margins.

Q.4 Net Profit Margin of Deepak Nitrite Ltd?

Deepak Nitrite Ltd Net Profit Margin is 8.42% for FY-2025, is below its 5-year median of 10.69%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	13.8	16.3
Operating Profit Margin (%)	13.28	16.21
Net Profit Margin (%)	8.42	10.69

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Deepak Nitrite Ltd?

Deepak Nitrite Ltd Return on Asset is 10.11%, which is below its 5-year historical median of 17.83%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Deepak Nitrite Ltd?

Deepak Nitrite Ltd Return on capital employed is 17% for FY-2025, which is below its 5-year historical median of 30.13%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Deepak Nitrite Ltd?

Deepak Nitrite Ltd Return on equity is 13.69% for FY-2025, which is below its 5-year historical median of 22.94%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Deepak Nitrite Ltd?

Deepak Nitrite Ltd Cash conversion cycle is 67 days, above its 5-year historical median of 58 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)	1.21	1.38
ROE (%)	13.69	22.94
ROCE (%)	17	30.13
Cash Conversion Cycle	67 days	58 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Deepak Nitrite Ltd?

Deepak Nitrite Ltd Debt-to-Equity ratio is 0.22, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Deepak Nitrite Ltd?

Deepak Nitrite Ltd Debt to cash flow from operations is 1.87, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Deepak Nitrite Ltd?

Q.1 Promoter shareholding and pledge status of Deepak Nitrite Ltd?

Promoters hold 49.33% of the Deepak Nitrite Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Deepak Nitrite Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Deepak Nitrite Ltd vs industry peers?

Deepak Nitrite Ltd revenue CAGR is 14.38%, compared to the industry median CAGR of 7.53%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	7.8	7.5
Gross Profit Growth (%)	-3.4	12.1
Operating Profit Growth (%)	-2.8	11.7
Net Profit Growth (%)	-14.1	9.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.21	0.93
ROE (%)	13.69	10.17
ROCE (%)	17	12.96
Cash Conversion Cycle (days)	66.53	62

Valuation & price assessment

Q.1 Stock return of Deepak Nitrite Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 38.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	38.7%	0.8%	-1.3%	-1.8%

Q.2 Valuation ratios of Deepak Nitrite Ltd vs historical?

The current P/E ratio of 47.98 is higher than its historical median of 35.73, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	47.98	35.73	28.17
Price to Book	4.56	6.64	2.22
Price to Sales	3.22	3.66	1.93
EV to EBITDA	26.77	23.43	14.20

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Check Before You Invest : Deepak Nitrite Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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