BSE:506401

Stock Analysis Report

Executive Summary

Deepak Nitrite Limited manufactures and sells basic chemicals, fine and speciality chemicals, performance products, and phenolics in India.

Snowflake

Fundamentals

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Deepak Nitrite's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

BSE:506401

-1.6%

IN Chemicals

-2.9%

IN Market


1 Year Return

2.6%

BSE:506401

-7.0%

IN Chemicals

-15.9%

IN Market

506401 outperformed the Chemicals industry which returned -7% over the past year.

506401 outperformed the Market in India which returned -15.9% over the past year.


Share holder returns

506401IndustryMarket
7 Day0.9%-1.6%-2.9%
30 Day-0.1%-1.5%-5.7%
90 Day-7.3%-7.0%-11.0%
1 Year3.3%2.6%-6.1%-7.0%-14.1%-15.9%
3 Year178.3%172.6%29.8%25.9%15.7%9.5%
5 Year269.9%252.8%117.0%105.2%33.2%20.5%

Price Volatility Vs. Market

How volatile is Deepak Nitrite's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Deepak Nitrite undervalued based on future cash flows and its price relative to the stock market?

31%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Deepak Nitrite's share price is below the future cash flow value, and at a moderate discount (> 20%).

Deepak Nitrite's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Deepak Nitrite is overvalued based on earnings compared to the IN Chemicals industry average.

Deepak Nitrite is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Deepak Nitrite is poor value based on expected growth next year.


Price Based on Value of Assets

Deepak Nitrite is overvalued based on assets compared to the IN Chemicals industry average.


Next Steps

Future Growth

How is Deepak Nitrite expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Deepak Nitrite's revenue is expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).

Deepak Nitrite's earnings are expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).

Deepak Nitrite's revenue growth is positive but not above the India market average.

Deepak Nitrite's earnings growth is positive but not above the India market average.

Deepak Nitrite's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Deepak Nitrite is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Deepak Nitrite performed over the past 5 years?

34.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Deepak Nitrite has delivered over 20% year on year earnings growth in the past 5 years.

Deepak Nitrite's 1-year earnings growth exceeds its 5-year average (179.2% vs 34%)

Deepak Nitrite's earnings growth has exceeded the IN Chemicals industry average in the past year (179.2% vs 9.2%).


Return on Equity

Whilst Deepak Nitrite has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Deepak Nitrite used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Deepak Nitrite has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Deepak Nitrite's financial position?


Financial Position Analysis

Deepak Nitrite is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Deepak Nitrite's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Deepak Nitrite's level of debt (110.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (165.1% vs 110.7% today).

Debt is not well covered by operating cash flow (5.4%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

What is Deepak Nitrite's current dividend yield, its reliability and sustainability?

1.58%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Deepak Nitrite's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.65%).

Deepak Nitrite's dividend is below the markets top 25% of dividend payers in India (2.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (10.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (6x coverage).


Next Steps

Management

What is the CEO of Deepak Nitrite's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Umesh Asaikar (64yo)

10.9yrs

Tenure

₹58,886,000

Compensation

Mr. Umesh M. Asaikar has been the Chief Executive Officer of Deepak Nitrite Limited. since September 2008 and has been its Executive Director since May 9, 2013. Mr. Asaikar served as an Executive officer  ...


CEO Compensation Analysis

Umesh's remuneration is higher than average for companies of similar size in India.

Umesh's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.3yrs

Average Tenure

59yo

Average Age

The average tenure for the Deepak Nitrite management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.1yrs

Average Tenure

63.5yo

Average Age

The tenure for the Deepak Nitrite board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buy₹4,829,52801 Mar 19
Sundown Finvest Pvt Ltd
EntityCompany
Shares21,000
Max Price₹229.98

Ownership Breakdown


Management Team

  • Deepak Mehta (63yo)

    Chairman & MD

    • Tenure: 3.0yrs
    • Compensation: ₹90.66m
  • Sanjay Upadhyay (58yo)

    Director of Finance

    • Tenure: 2.3yrs
    • Compensation: ₹29.44m
  • Jaydip Chowdhury

    Head of Corporate Affairs & Communications

    • Tenure: 0.0yrs
  • Umesh Asaikar (64yo)

    CEO & Executive Director

    • Tenure: 10.9yrs
    • Compensation: ₹58.89m
  • Pramod Garg (61yo)

    President of Bulk Chemicals & Commodities

    • Tenure: 0.0yrs
    • Compensation: ₹8.45m
  • Maulik Mehta (36yo)

    Associate VP & Whole-Time Director

    • Tenure: 3.3yrs
    • Compensation: ₹17.11m
  • Arvind Bajpai (47yo)

    Company Secretary & Compliance Officer

    • Tenure: 5.3yrs
  • Girish Satarkar (55yo)

    President of Bulk Chemicals

    • Tenure: 0.0yrs
    • Compensation: ₹7.42m
  • Nilesh Dave (61yo)

    Vice President of Human Resources

    • Tenure: 0.0yrs
  • Jagdeep Vyas (59yo)

    Senior General Manager of Accounts & Taxation

    • Tenure: 0.0yrs

Board Members

  • Deepak Mehta (63yo)

    Chairman & MD

    • Tenure: 3.0yrs
    • Compensation: ₹90.66m
  • Chimanlal Mehta (87yo)

    Chairman Emeritus

    • Tenure: 3.0yrs
    • Compensation: ₹160.00k
  • Ajay Mehta (60yo)

    Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: ₹120.00k
  • Sudhir Mankad (72yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: ₹1.29m
  • Sanjay Upadhyay (58yo)

    Director of Finance

    • Tenure: 2.3yrs
    • Compensation: ₹29.44m
  • Sudhin Choksey (65yo)

    Independent Director

    • Tenure: 14.4yrs
    • Compensation: ₹1.27m
  • Sanjay Asher (56yo)

    Independent Director

    • Tenure: 0.3yrs
  • Umesh Asaikar (64yo)

    CEO & Executive Director

    • Tenure: 10.9yrs
    • Compensation: ₹58.89m
  • Sandesh Anand (77yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: ₹2.86m
  • Maulik Mehta (36yo)

    Associate VP & Whole-Time Director

    • Tenure: 3.3yrs
    • Compensation: ₹17.11m

Company Information

Deepak Nitrite Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Deepak Nitrite Limited
  • Ticker: 506401
  • Exchange: BSE
  • Founded: 1970
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹35.503b
  • Shares outstanding: 136.39m
  • Website: https://www.godeepak.com

Number of Employees


Location

  • Deepak Nitrite Limited
  • Aaditya-I
  • Chhani Road
  • Vadodara
  • Gujarat
  • 390024
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
506401BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1995
DEEPAKNINSEI (National Stock Exchange of India)YesEquity SharesININRJul 1995

Biography

Deepak Nitrite Limited manufactures and sells basic chemicals, fine and speciality chemicals, performance products, and phenolics in India. The company's Basic Chemicals segments offers intermediates for c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 12:41
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.