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Deepak Nitrite Ltd Stock Analysis

Large Cap
Evaluated by 2094 users | BSE: 506401 | NSE: DEEPAKNTR |
Chemicals

Deepak Nitrite began in 1970 with a vision to support the country’s drive towards self-sufficiency and import substitution. Ranked amongst Fortune Next 500 and 25 Top wealth creators by the prestigious Fortune India Magazine, Deepak Nitrite Limited...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Deepak Nitrite Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 10.17%8.48%7.38%8.61%9.4%10.05%6.76%8.3%12.64%36.41%
Value Creation Index -0.12-0.26-0.36-0.25-0.18-0.13-0.41-0.280.102.17
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6727901,0191,2701,3271,3361,2331,4551,7922,230
Y-o-Y Gr. Rt.-17.5%29.1%24.6%4.5%0.7%-7.7%18%23.2%24.4%
Adjusted EPS (Rs.) 2.52.553.254.055.135.74.166.110.6340.04
Y-o-Y Gr. Rt.-2%27.5%24.6%26.7%11.1%-27%46.6%74.3%276.7%
Book Value per Share (Rs.) 22.624.0326.7129.2933.140.8656.0169.277.55109.34
Adjusted Net Profit 26.126.733.942.353.766.354.383.2145546
Net Op. Cash Flow (Rs. Cr.) 38.242.924.3-14.210519192.9214277515
Debt to Cash Flow from Ops 1.616.0814.04-35.775.182.596.172.161.180.4
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Deepak Nitrite Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 14.3%10.9%21.8%24.4%
Adjusted EPS 36.1%50.8%112.7%276.7%
Book Value per Share 19.1272541
Share Price 70% 89.1% 91.5% 252%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 11.4210.8712.7214.416.4116.18.999.9314.4942.84
Operating Profit Margin (%) 8.377.737.149.4210.4312.711.7414.417.5936.09
Net Profit Margin (%) 3.883.383.333.334.044.964.415.728.0924.49
Debt to Equity 0.261.041.221.661.571.040.780.490.310.14
Working Capital Days 116122126128133133153160137107
Cash Conversion Cycle 48423150696969533925
Entity Percentage Holding
Promoters 45.69%
Institutions 23.51%
Non-Institutions 30.80%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Deepak Nitrite Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Deepak Nitrite Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Deepak Nitrite Ltd's performance infers:

Deepak Nitrite Ltd earnings have grown by 50.8%, whereas share price has appreciated 89.1% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Deepak Nitrite Ltd share prices over the last 10 years. Here is what we found out:

Deepak Nitrite Ltd share price has appreciated 57.7% annually over the past ten years.

Deepak Nitrite began in 1970 with a vision to support the country’s drive towards self-sufficiency and import substitution. Ranked amongst Fortune Next 500 and 25 Top wealth creators by the prestigious Fortune India Magazine, Deepak Nitrite Limited (DNL) today is one of India's fastest-growing chemical intermediates companies with a diversified business of Basic Chemicals, Fine & Speciality and Performance Products. Further, it manufactures

Deepak Nitrite began in 1970 with a vision to support the country’s drive towards self-sufficiency and import substitution. Ranked amongst Fortune Next 500 and 25 Top wealth creators by the prestigious Fortune India Magazine, Deepak Nitrite Limited (DNL) today is one of India's fastest-growing chemical intermediates companies with a diversified business of Basic Chemicals, Fine & Speciality and Performance Products. Further, it manufactures Phenol, Acetone & Iso-Propyl Alcohol through its wholly-owned subsidiary, Deepak Phenolics Limited.

Deepak Nitrite’s manufacturing facilities are located at Nandesari and Dahej in Gujarat, Roha and Taloja in Maharashtra, and Hyderabad in Telangana. Today, DNL caters to over hundreds of customers in many continents with various products.

Business area of the company

Deepak Nitrite manufactures chemical intermediates to serve the domestic and international market with high quality products made in a responsible and sustainable manner.

Diversified Product Portfolio

Basic Chemicals

  • Sodium Nitrite
  • Sodium Nitrate
  • Nitro Toluidines
  • Fuel Additives
  • Nitrosyl Sulphuric Acid

Fine & Speciality Chemicals

  • Xylidines
  • Oximes
  • Cumidines
  • Speciality
  • Agrochemicals

Performance Products

  • Optical Brightening Agent (OBA)
  • DASDA

Phenolics

  • Phenol
  • Acetone
  • Cumene
  • Isopropyl alcohol

Awards and recognitions

2016-17

  • The company was conferred with Corporate Social Responsibility Award 2015-16 in the category of Women Empowerment Private Sector Companies with turnover between Rs 201 Crores - Rs 3000 Crores by FICCI. Further, the Comprehensive Emergency Obstetric & Newborn Care (CEmONC) implemented in partnership with Govt. of Gujarat by Deepak Foundation under the CSR activities of the company has been awarded as the Best CSR project by Gujarat CSR authority for cohesive and strategic partnerships.

2017-18

  • FGI Recognition, 2018: Deepak Foundation was conferred with Certificate of Merit at the 15th Federation of Gujarat Industries (FGI) Awards for energetically engaging in CSR activities.
  • Millennium Alliance Award, 2017: Conferred with the Millennium Alliance Round-4 Innovations Award 2016-17 for community-owned initiatives to secure food security in tribal areas.
  • EHS Award: Deepak Nitrite Limited, Nandesari awarded by Gujarat Safety Council, Vadodara and DISH, Gujarat in two different categories for achieving Accident-free Man-hours. The plant has achieved 8.7 Million Safe Man-hours.
  • GCSRA Award, 2017: Best CSR project for Cohesive & Strategic Partnerships under the large companies category - for Comprehensive Emergency Obstetric and Newborn Care (CEmONC) unit at Jabugam, implemented with the CSR support of Deepak Nitrite Ltd and in partnership with the Gujarat Government.
  • ICC Award for Social Responsibility, 2017: Deepak Foundation conferred with the ICC Award For Social
    Responsibility by the Indian Chemicals Council for promoting women empowerment in tribal areas of Chhota Udepur district in Gujarat.
  • TATA group Recognition, 2018: Excellent Performance as Most Collaborative Partner, 2018 recognised by Rallis, A TATA Group Company.
  • FICCI Chemicals & Petrochemicals Award, 2017: Mr. Deepak C. Mehta, CMD, honoured for his ‘Distinguished Contribution to Indian Chemicals Industry’.
  • Gujarat’s Best Employer Brand Award: Honoured with “Gujarat Best Employer Brand Award” by World HRD Congress for using marketing communications effectively in attracting, retaining and developing talent and in retention policy.
  • ET NOW TV: channel felicitated Deepak Nitrite as “Super Achievers 2017 - Making New India”.

2018-19

  • Star of Baroda Award: Bhaskar Group, a well-known media house in the country, awarded Deepak Nitrite Limited, the Star of Baroda Award for being the most Responsible Chemical Company in the country.
  • Deepak Nitrite Limited makes to Fortune 500 exclusive club of Fortune India Magazine: Shri Maulik Mehta, Whole Time Director, DNL received felicitation of top 25 wealth creator under mid-size category on behalf of the comany from Shri Jayant Sinha, Hon. Union Minister of State for Civil Aviation and Shri Chaudhary Birendra Singh, Hon. Union Minister of Steel at Fortune 500 award ceremony.
  • National Best Employer Brands 2018: At an event held at Taj Lands End, Mumbai, the Global Employer Branding Institute and World HRD Congress conferred Deepak Nitrite Limited with National Best Employer Brands 2018.
  • Gujarat Brand Leadership Awards 2018: Deepak Foundation was felicitated with NGO Leadership Award at Gujarat Brand Leadership Awards 2018 for its valuable contribution towards the upliftment of the society. The award was conferred in presence of Dr. R.L. Bhatia, Founder of World CSR Day and World Sustainability Day at Radison Blu, Ahmedabad on September 27, 2018.
  • Shram Award by Government of Gujarat: Marking Deepak Nitrite’s unwavering commitment toward employee health and safety, the Government of Gujarat conferred Shri Jaydeep Patel from HAS Plant, Shram Award on February 17, 2019.

2019-20

  • India’s Top 500 Companies: Deepak Nitrite Limited has been ranked, recognized, and profiled in Dun & Bradstreet’s list of India’s Top 500 Companies for the year 2020 publication as one of the leading companies in the Chemicals Sector.
  • CFO100 Roll of Honour: Deepak Nitrite Limited’s Director- Finance and CFO, Sanjay Upadhyay honoured at 10th Annual CFO100 Roll of Honour. The CFO100 Programme annually recognises the top 100 senior finance professionals in India.
  • Transformance: Best innovation in digital communication: Deepak Nitrite Limited (DNL) was conferred with “Best Innovation in Digital Communication” by Transformance forums for its digital campaigns and social media initiatives.
  • Times Icon of Vadodara: Deepak Nitrite Limited (DNL) was conferred with Best Chemical Intermediates Company ‘Times Icon of Vadodara’ award by Times Internet Limited- a division of Times of India. Sanjay Upadhyay, Director - Finance & DFO from DNL received the award on behalf of the company. The award was presented by Femina Miss India World Suman Rao, the special guest at the event.
  • Roll of Honour- Dalal Street Journal: Deepak Nitrite Limited’s CFO- Mr. Sanjay Upadhyay recognized as ‘Best CFO under Chemicals in Mid-Cap 2020’.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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