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Deepak Nitrite Ltd. Stock Analysis

Mid Cap
Evaluated by 1667 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.Deepak Nitrite is a leading manufacturer of organic, inorganic, fine and specialty chemicals and a world leader in 2,4 and 2,6 Xylidine. What began as a fully...

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 53.4% 65.6% 62.6% 161.3%
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 25.02%
Non-Institutions 29.28%
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 and arrived at the following conclusion:

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

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

Deepak Nitrite earnings have grown by 50.8%, whereas share price has appreciated 65.6% 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 share prices over the last 10 years. Here is what we found out:

Deepak Nitrite share price has appreciated 46.1% 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.

Deepak Nitrite is a leading manufacturer of organic, inorganic, fine and specialty chemicals and a world leader in 2,4 and 2,6 Xylidine. What began as a fully indigenous sodium nitrite and sodium nitrate plant in Nandesari, Gujarat, has now grown into a globally proactive company with a presence in over 20 countries, including USA, European Union & East

Deepak Nitrite began in 1970 with a vision to support the country’s drive towards self sufficiency and import substitution.

Deepak Nitrite is a leading manufacturer of organic, inorganic, fine and specialty chemicals and a world leader in 2,4 and 2,6 Xylidine. What began as a fully indigenous sodium nitrite and sodium nitrate plant in Nandesari, Gujarat, has now grown into a globally proactive company with a presence in over 20 countries, including USA, European Union & East European nations, Japan, ASEAN countries, South Korea and South America.

Deepak Nitrite is the preferred business partner of chemical majors worldwide in Pharma, Rubber, Colourants and Imaging chemicals. Headquartered at Pune, we are a multi-division and multi-product company that has manufacturing facilities at Nandesari, in Gujarat and at Pune, Roha and Taloja in Maharashtra and Hyderabad in Andhra Pradesh, all of them complying with ISO 9001:2000 standards.

The Inorganic Chemicals are produced at one of the facilities in Gujarat while the Organic and Fine & Speciality chemicals are produced at the other facilities. One of the facilities is devoted to the processes Hydrogenation and Reductive Alkylation. This has led to a paradigm shift from low value bulk chemicals and intermediates to high value fine and specialty chemicals based on our core expertise as well as lateral and vertical integration of our existing products, exploring downstream derivatives.

With a strong focus on customer satisfaction, the company has set up Custom Manufacturing services to meet specific needs of end users. Our capabilities extend to the manufacture of high-value, specialty products either based on our own end products or developed especially for our users.

Product range

Deepak Nitrite produces a spectrum of chemicals. It caters to a wide range of industries including Colourants, Agrochemicals, Pharmaceuticals, Rubber, Speciality & Fine chemicals. Deepak Nitrite is the world leader in 2,4 Xylidine and 2,6 Xylidine and the second largest producer of DASDA and also manufacture a wide range of intermediates for use in industrial explosives, paints, cosmetics, lubricants, polymers, optical brighteners, photographic chemicals, petroleum additives, specialty fibres and water treatment chemicals. Inorganic & Performance Chemicals, Fine & Speciality Chemicals, Organic Chemicals and on Demand Product Range

Awards/Achievements

  • DNL has been ranked amongst the top 500 Body corporates by Dun and Bradstreet for the last three years.
  • Sir P. C. RAY Award for the Best Chemical Manufacturing Unit in India.
  • Awarded the 'EXPORT HOUSE' status by the Govt. of India in 1998 and is in force till date.
  • The Federation of Indian Chambers of Commerce and Industry (FICCI) award was presented, by the then Prime Minister of India, Mr. I. K. Gujral, to the then Vice-Chairman of DNL Mr. C. K. Mehta 1997-98.
  • The company won the Certificate of Merit, at the 'ENVIROTECH '93', for sustainable development for adopting environment friendly practices 'in house' for the treatment and disposal of the effluent generated at its various manufacturing facilities, from the CHEMTECH Foundation, India. The company is one of the first to display the figures of the pollution emitted at the gate of each of its manufacturing facilities on a daily basis.
  • 2012 Deepak Nitrite Ltd was awarded Business world FICCI CSR Award 2011-12.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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