Mehabe score: 7 G Factor: 5 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 8.
Description
Deepak Nitrite has 4 major segments #:
1. Basic Chemicals: Nitrites, Nitro Toluidines & Fuel Additives
2. Fine & Specialty Chemicals: Xylidines, Oximes, Cumidines and speciality agro-chemicals
3. Performance Products: brightening agents used in papers and detergents
4. Phenolics: Phenol, acetone etc
Main Points
80% market share in Sodium Nitrate
60% global market share in DASDA
75% market share in optical brightening agentSite:DEEPAKNTRMain Symbol:DEEPAKNI
Stock trades at 1941.0, above its 50dma 1769.74. It also trades above its 200dma 1355.32. The stock remains bullish on techicals
The 52 week high is at 1989.20 and the 52week low is at 511.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 64.84% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 36.65%
Weakness
– Stock is trading at 11.28 times its book value
Competition
– The industry trades at a mean P/E of 29.7x. Pidilite Inds. trades at the industry’s max P/E of 102.32x. DEEPAKNTR trades at a P/E of 34.1x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 8.0. DEEPAKNTR has a G-Factor of 5 and Piotski scoreof 8.
– Average 1 month return for industry is 5.7%. The max 1- month return was given by Navin Fluo.Intl.: a return of 14.25 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1463.0 cr compared to Rs 1056.0 cr for period ended Mar 2020, a rise of 38.5%
Operating Profits reported at Rs 455.0 cr for period ended Mar 2021 vis-vis 262.0 for period ended Mar 2020 .
Operating Margins expanded 629.0 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 21.27 compared to Rs 15.88 for previous quarter ended Dec 2020 and Rs 12.63 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4360.0 cr for period ended Mar 2021 vis-vis sales of Rs 4230.0 cr for the period ended Mar 2020, a growth of 3.0%. The 3 year sales cagr stood at 38.2%.
Operating margins expanded to 29.0% for period ended Mar 2021 vis-vis 24.0% for period ended Mar 2020, expansion of 500.0 bps.
Net Profit reported at Rs 776.0 cr for period ended Mar 2021 vis-vis sales of Rs 611.0 cr for the period ended Mar 2020, rising 21.3%.
Company recorded a healthy Net Profit CAGR of 114.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 999.0 cr for period ended Mar 2021 vis-vis Rs 765.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 270% on a 1 Year basis vis-vis a return of 100% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of 38% over the last 3 Years. – The compounded profit growth on a TTM basis is 26% vis-vis a compounded profit growth of 111% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 11.87% vis-vis 13.26% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 30.8% vis-vis 30.53% for Dec 2020
Conclusion
– has reduced debt.
– has delivered good profit growth of 64.84% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 36.65% – Stock is trading at 11.28 times its book value
