Deepak Nitrite Ltd.
NSE: DEEPAKNTRNIFTY500
Analyst consensus:Neutral· 18 analysts
₹1,645.20-12.1%1Y
Last updated 03:04:33 IST· Public market feed (~15 min delay during market hours)
Deepak Nitrite Ltd.: A 30-second snapshot
Deepak Nitrite (DEEPAKNTR) is an NSE-listed chemicals company currently trading at ₹1,875.90, up 13.2% over the past 3 months but down 6.74% over 12 months. At a trailing PE of 47.76 and D/E of 22.4, the stock carries a high valuation and significant leverage relative to a 5-year earnings CAGR of 1.8%.
P/E
47.8
Forward P/E
37.2
ROE
—
Debt / Equity
22.41
Profit Margin
+6.7%
Div. Yield
+0.4%
5Y ROE > 15%
3/5
5Y FCF > 0
3/5
Quality
42/100
News
1 headlines · 1 positive · 0 negative
Recent context
- ·Deepak Chem Tech (a subsidiary) signed an agreement to construct a HyCO plant to supply syngas as a key raw material for its Polycarbonate project, disclosed on 30 April 2026 — the most recent publicly tracked news item.
- ·Mean analyst rating of 2.89 across 18 analysts (1–5 scale, lower = more constructive) places consensus in the middle of the scale, without a strong lean in either direction.
- ·Support levels are identified at ₹1,580, ₹1,521, and ₹1,280 — the nearest is 15.8% below the current price of ₹1,875.90, with no resistance levels flagged above current price.
Strengths
- +Price is above both the 50-DMA (₹1,535.90) and 200-DMA (₹1,675.94), reflecting short- and medium-term momentum recovery after an extended weak phase.
- +Forward PE of 37.16 is materially below the trailing PE of 47.76, implying sell-side consensus expects a meaningful step-up in earnings over the next 12 months.
- +The company is entering a HyCO plant agreement to secure long-term feedstock supply for its Polycarbonate project, signalling vertical integration intent on a strategic capex cycle.
- +Dividend yield of 0.40% and FCF positive in 3 of the available years suggest the business has generated some level of distributable cash, even amid elevated leverage.
Weaknesses
- −D/E of 22.4 is exceptionally high for the chemicals sector and debt trend is rising; with 5-year earnings growth of only 1.8%, the capacity to service and reduce this leverage is not demonstrated in historical data.
- −Quality score of 34 ranks 4th out of 6 peers in the chemicals sector, with peers Pidilite (66) and Solar Industries (57) scoring materially higher on capital efficiency and earnings consistency.
- −Profit margin at 6.71% and 5-year revenue growth at 3.8% are thin for a specialty chemicals business; earnings growth of 1.8% over 5 years has not kept pace with the expansion in balance sheet obligations.
- −RSI at 80.49 places the stock in overbought territory on a near-term basis; the 3-month rally of 13.2% has brought price 12.2% above the 200-DMA while the 52-week drawdown from high is -13.35%.
Open questions
- ?Does the HyCO plant investment structurally reduce raw material costs enough to expand margins, or does it add another layer of capital expenditure to an already highly leveraged balance sheet?
- ?How has D/E of 22.4 evolved over the past 3–5 years — is it the result of planned capacity expansion or operational cash flow shortfalls, and what is management's stated deleveraging timeline?
- ?With the forward PE at 37.16 vs trailing at 47.76, what specific earnings drivers are analysts modelling to close that gap, and how sensitive is the valuation to a delay in the Polycarbonate project ramp-up?
- ?Given that quality score (34) and consistency score (29) rank near the bottom of sector peers, does the 3-month price recovery reflect a change in business fundamentals or a broader sector re-rating?
Peer comparison: Chemicals
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| DEEPAKNTR | Deepak Nitrite Ltd.You're viewing | 47.8 | — | 34 |
| Industry avg | across 5 peers | 53.3 | +17.6% | 44 |
| PIDILITIND | Pidilite Industries Ltd. | 59.7 | +23.5% | 66 |
| SOLARINDS | Solar Industries India Ltd. | 101.0 | — | 57 |
| SRF | SRF Ltd. | 45.1 | +13.8% | 41 |
| COROMANDEL | Coromandel International Ltd. | 28.1 | +15.6% | 30 |
| PIIND | PI Industries Ltd. | 32.4 | — | 25 |
Technical state
Current price
₹1,875.90
SMA 50
₹1,535.90
SMA 200
₹1,675.94
RSI (14)
80.5 (overbought)
From 52w high
-13.3%
1Y return
-6.7%
3M return
+13.2%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
₹1,580.00
₹1,521.00
₹1,280.00
Risk flags
- highDebt-to-equity of 22.4 is exceptionally elevated for a chemicals company; rising debt trend further amplifies solvency exposure, particularly given 5-year earnings growth of only 1.8%.
- highRSI at 80.49 is firmly in overbought territory; price has moved 13.2% over 3 months while the 1-year return is -6.74%, indicating a sharp near-term recovery within a longer period of underperformance.
- mediumQuality score of 34 out of 100 ranks 4th out of 6 sector peers; ROE is not reported, FCF positive in only 3 of available years, and consistency score is 29, reflecting uneven capital efficiency.
- mediumProfit margin of 6.71% and 5-year revenue growth of 3.8% are modest for a specialty chemicals business; forward PE of 37.2 prices in a significant earnings recovery that has not yet materialised in historical growth rates.
- lowNews coverage is very sparse — only 1 article captured in the analysis window — making sentiment assessment (1 positive) statistically unreliable.
Cross-section contradictions
- Price is 12.2% above the 200-DMA and RSI stands at 80.49 despite a -6.74% 1-year return and a quality score (34) that ranks near the bottom of sector peers — the sharp 3-month rally has not been accompanied by a visible improvement in fundamentals.
- ROE data is absent in both the company-level report and for 3 of 5 peers, limiting the ability to contextualise capital efficiency despite the company carrying a D/E of 22.4.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 12 May 2026 · rotates through NIFTY 500 every ~5 days