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Deepak Fertilisers & Petrochemicals Corporation Ltd. Stock Analysis

Small Cap
Evaluated by 1834 users | BSE: 500645 | NSE: DEEPAKFERT |
Fertilizers
The genesis of Deepak Fertilisers and Petrochemicals Corporation (DFPCL) could be said to be in the year 1970 when C. K. Mehta set up Deepak Nitrite (DNL), combining his skills in trading and manufacturing. DNL grew by leaps and bounds, surpassing expectations of all investors and also won...

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 Fertilisers & Petrochemicals Corporation Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 12.02%13.6%9.66%13.98%6.39%7%4.09%6.07%2.72%2.86%
Value Creation Index -0.29-0.18-0.37NANANANANANANA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,5662,3432,6093,8123,7124,2432,0573,1873,1491,708
Y-o-Y Gr. Rt.-49.6%11.3%46.1%-2.6%14.3%-51.5%55%-1.2%-45.8%
Adjusted EPS (Rs.) 19.8324.4517.8829.8310.3514.7810.3414.181.70.81
Y-o-Y Gr. Rt.-23.3%-26.9%66.8%-65.3%42.8%-30%37.1%-88%-52.4%
Book Value per Share (Rs.) 117.19134.49144.47163.91167.62172.76172.11177.63171.04173.38
Adjusted Net Profit 18022216327194.213494.112915.57.4
Net Op. Cash Flow (Rs. Cr.) 22785249414-73-99.3-7.3-224830-33.6
Debt to Cash Flow from Ops 3.4510.544.512.32-18.97-19.62-182.04-6.120.81-23.23
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 Fertilisers & Petrochemicals Corporation Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 1%-14.4%-6%-45.8%
Adjusted EPS -29.9%-39.9%-57.2%-52.4%
Book Value per Share 4.50.70.31.4
Share Price 0.3% -0.4% -27% 60.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 18.0719.4312.8219.356.248.6968.110.960.46
Operating Profit Margin (%) 21.7618.1913.4714.338.749.0411.496.64.217.33
Net Profit Margin (%) 11.529.496.247.122.543.174.574.050.490.43
Debt to Equity 0.740.730.860.640.911.240.850.850.430.49
Working Capital Days 108110132106135168330168142185
Cash Conversion Cycle 5860766084110165664318
Entity Percentage Holding
Promoters 52.20%
Institutions 4.63%
Non-Institutions 43.17%
Pledged *0.000.000.000.000.000.0077.5075.7175.7175.71
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Deepak Fertilisers & Petrochemicals Corporation Ltd. and arrived at the following conclusion:

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

The 5-year analysis of Deepak Fertilisers & Petrochemicals Corporation Ltd.'s performance infers:

Deepak Fertilisers & Petrochemicals Corporation Ltd. earnings have declined by -39.9%, whereas share price has depreciated -0.4% 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 Fertilisers & Petrochemicals Corporation Ltd. share prices over the last 10 years. Here is what we found out:

Deepak Fertilisers & Petrochemicals Corporation Ltd. share price has depreciated -1.5% annually over the past ten years.

The genesis of Deepak Fertilisers and Petrochemicals Corporation (DFPCL) could be said to be in the year 1970 when C. K. Mehta set up Deepak Nitrite (DNL), combining his skills in trading and manufacturing. DNL grew by leaps and bounds, surpassing expectations of all investors and also won many prestigious awards like P.C. Ray award, for being the best Chemical Industrial unit in India.

In 1983, Deepak Fertilisers and Petrochemicals Corporation (DFPCL) started commercial production of

The genesis of Deepak Fertilisers and Petrochemicals Corporation (DFPCL) could be said to be in the year 1970 when C. K. Mehta set up Deepak Nitrite (DNL), combining his skills in trading and manufacturing. DNL grew by leaps and bounds, surpassing expectations of all investors and also won many prestigious awards like P.C. Ray award, for being the best Chemical Industrial unit in India.

In 1983, Deepak Fertilisers and Petrochemicals Corporation (DFPCL) started commercial production of ammonia (in technical collaboration with Fish International Engineers (USA) using natural gas as feedstock. This marked the fulfillment of a need for lateral integration into the world of basic building block chemicals, premium fertilisers and petrochemicals. At the time, this was India's only merchant ammonia manufacturer. The International Finance Corporation initially supported this venture of Deepak group in the form of equity participation in DFPCL.

The company undertook major expansion and diversification in 1989 to achieve forward integration of ammonia and diversification in Methanol. In July 1992, DFPCL commenced commercial production of Low Density Ammonium Nitrate (LDAN), Nitro Phosphate (NP), Dilute Nitric Acid (DNA), and Concentrated Nitric Acid (CNA).This has resulted in a multi-product portfolio for DFPCL consisting of chemicals, petrochemicals, fertilisers and other agri-inputs. To ensure an uninterrupted supply of natural gas to its plant, DFPCL laid its own 43 km gas pipeline from the coastal fall point of Bombay High to its plants in Tajola, thus becoming one of the first companies in India to have its own gas pipeline.

The Company has now diversified into specialty retailing with Ishanya, India’s largest Design Centre and Specialty Mall for interiors and exteriors. This 5,50,000 sq.ft. project is located near Pune and is home to 52 product and service categories in interiors and exteriors.

DFPCL has a chemical storage terminal at Jawarharlal Nehru Port Trust (JNPT) to provide support to its logistics management system and ensure a window to the world trade in chemicals. It is in the process of adding new storage facilities for Ammonia, Methanol and other products. The company also leases port storage capacities at Bombay Port Trust and Vishakhapatnam.

Company’s industrial chemicals division caters to a cross-section of industrial customers, both small and large. These include all the major companies in pharmaceuticals, DMT, pesticides, resins, textiles, fertilisers, rubber, petrochemicals, fibres and polyester sectors.

Business of the company:

DFPCL's business can be broadly categorised into : -

  • Chemicals
  • Agribusiness
  • Specialty Retailing

Chemicals: This division of DFPCL manufactures Methanol, various grades of Nitric Acid and Ammonia. DFPCL is one of the largest producers of Methanol in India, which in turn is used to manufacture drugs, pharmaceuticals, DMT, pesticides, methylamines, formaldehyde, etc. DFPCL is also one of the largest manufactures various concentrations of Nitric Acid (60%, 68%, 72% and 98%). Ammonium Nitrate: The explosives division manufactures Low Density Ammonium Nitrate, which is used for making Ammonium Nitrate-fuel oil (ANFO), blasting agents and also emulsified ANFO (HANFO). DFPCL is the largest manufacturer of ammonium nitrate in India (capacity expanded to 100.000 tpa in September 2002), and the only one making prilled Ammonium Nitrate (AN). Their products are used for open cast mining, underground metalliferrous mining and construction Industry.

Its products:

  • Methanol
  • Nitric Acid
  • Liquid Carbon Dioxide
  • Ammonium Nitrate
  • Isopropyl Alcohol

Agribusiness: This division of DFPCL manufactures 23:23:0 prilled Nitrophosphate fertiliser under the brand name Mahadhan. DFPCL markets Mahadhan through a network of over 1000 dealers. Thanks to the company's rigorous adherence to quality, Mahadhan is one of most widely accepted fertiliser brands in India.

Its Products:

  • Mahadhan Potash MOP
  • Mahadhan Power
  • Mahadhan Chetak DAP
  • Bhoodhan
  • Agri Lab Services
  • Mahadhan Saarrthie Center

Specialty Retailing:

Ishanya: Ishanya is India's first International Design Centre and Speciality Mall - a centre for excellence in space design and the one-stop shop for interior and exterior products.

For architects and interior designers, Ishanya is a platform to showcase their art, craft and vision to a targeted and discerning audience. For manufacturers and retailers of interior and exterior products, it's the perfect marketplace to make the most of India's real estate and construction boom. For homeowners, corporate shoppers and visitors, Ishanya will provide the ultimate experience in shopping for the home.

Social Responsibilities: The Company has been contributing towards social causes for nearly two decades. The Deepak Charitable Trust (DCT) and the Deepak Medical Foundation (DMF) with the support of DFPCL and Deepak Nitrite Limited are carrying on development activities for society. DCT has been actively working in the area of mother and childcare. Through an integrated network of women health workers the foundation has been imparting training and communication on health care. Extending the activities on both sides, the Foundation has catalysed and supported the creation of Aanganwadis, and taken education to youth on family planning. The Foundation is now working to curtail the spread of HIV / AIDS.

DFPCL takes an active interest in environmental protection. In addition to regulatory requirements of the State Pollution Boards and Federation of Indian Industries, care is taken to reduce pollution by incorporation of appropriate effluent handling disposal systems.

Ishanya Foundation: The Ishanya Foundation is focused on ‘Women Empowerment’, ‘Education’ and ‘Health’. As its maiden project, the foundation started a Diabetic Centre at the Jehangir hospital, Pune. The Ishanya Foundation Diabetic Centre is equipped with advanced machines like Biothesiometer, Hand Doppler, and the RS Scan (foot mapping machine). The centre offers a preventive, curative and research effort on diabetes. In its outreach programme, a number of diabetic camps and cataract operations were conducted free of cost for the needy.

The Ishanya Foundation serves 27 villages around Taloja by offering free OPD check-up by a team of doctors, trained medical and paramedical staff. It has started self help groups to enable women save money and put it to right use, thereby gaining recognition and respect in the society. Mobile libraries have been started in three schools in Taloja and joyful activities are carried out for these children.

Recognition & Awards:

1) Dun and Bradstreet Award: DFPCL has been ranked 3rd as per 'Total Income' in the Chemicals sector in Dun & Bradstreet's India's Top 500 Companies 2009.The company ranked 5th as per the total income in the Chemicals sector by Dun & Bradstreet, India's top 500 companies 2008.

2) Forbes Asia's Best under a Billion: DFPCL is the only company in the agricultural and chemical sector from India to have made it to the Forbes magazine's Asia's Best under a billion list.

3) US Pharmacopoeia Certification: Company has received the US Pharmacopoeia certification under the excipient verification program for its IPA product and enjoys the distinction of being the first company in the world to have received this certification.

4) Excellence in Fertiliser Extension Services award: DFPCL was selected as a winner for - Excellence in Fertiliser Extension Services award.

5) British Safety Council Award: The British Safety Council Award is awarded annually to organisations that have attained high health and safety standards. The awards are judged by comparing safety records (including accident rates) with others in the same industry. The award has been conferred upon DFPCL for the third consecutive year (2000-2001) for their expertise and effort in maintaining a good record on health and safety in the plant.

6) Environment, Agriculture and Rural Development Award

This award is for company’s outstanding contribution in the field of:

  • Control of air and water pollution in industry
  • Rural development for the benefit of the poorer sections of the people
  • Agriculture for highest productivity of a crop

The Indian Merchants' Chamber has conferred its 'environment, agriculture and rural development' award for 2001 to Deepak Fertilisers.

The award decided by the trustees of the Chamber's 'diamond jubilee endowment trust', was given to DFPCL for 'its outstanding contribution to promoting the growth of India's rural economy'. The area of study was - Women's Dairy Co-operative and Self Help Groups (Savings and Credit Society). Both these rural development programs were recognised. The award ceremony was organised in Mumbai on 02 May, 2002.

7) Annual Fertilisers Association of India (FAI) Honour : National Safety Council of India declared DFPCL the winner of the Prashansa Puraskar for developing and implementing very effective Occupational Safety and Health Management Systems and Procedures and achieving very good performance.

National Safety Council of India is a member of the Asia-Pacific Occupational Safety and Health Organization (APOSHO) is an international body composed of non-profit professional organizations devoted to the prevention of occupational accidents and diseases.

2011 - DFPCL awarded for ‘Excellence in Fertiliser Extension Services’.
        - DFPCL was ranked amongst the Top 500 Companies according to Fortune (India). '

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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