Loading...

Deepak Nitrite

NSEI:DEEPAKNI
Snowflake Description

High growth potential average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DEEPAKNI
NSEI
₹32B
Market Cap
  1. Home
  2. IN
  3. Materials
Company description

Deepak Nitrite Limited manufactures and sells basic chemicals, fine and specialty chemicals, and performance products in India. The last earnings update was 160 days ago. More info.


Add to Portfolio Compare Print
  • Deepak Nitrite has significant price volatility in the past 3 months.
DEEPAKNI Share Price and Events
7 Day Returns
-0.2%
NSEI:DEEPAKNI
4.3%
IN Chemicals
4.2%
IN Market
1 Year Returns
4.2%
NSEI:DEEPAKNI
-2.4%
IN Chemicals
-5.5%
IN Market
DEEPAKNI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Deepak Nitrite (DEEPAKNI) -0.2% -10.3% -20.5% 4.2% 195.9% 665.9%
IN Chemicals 4.3% 1.2% -1.5% -2.4% 66.8% 213.5%
IN Market 4.2% 1.1% -6.2% -5.5% 32.6% 81.7%
1 Year Return vs Industry and Market
  • DEEPAKNI outperformed the Chemicals industry which returned -2.4% over the past year.
  • DEEPAKNI outperformed the Market in India which returned -5.5% over the past year.
Price Volatility
DEEPAKNI
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Deepak Nitrite to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Deepak Nitrite.

NSEI:DEEPAKNI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.5%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:DEEPAKNI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.7%
Equity Risk Premium S&P Global 7.3%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.48
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.483 (1 + (1- 35%) (31.08%))
0.58
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.73% + (0.8 * 7.27%)
13.55%

Discounted Cash Flow Calculation for NSEI:DEEPAKNI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Deepak Nitrite is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:DEEPAKNI DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (INR, Millions) -2,174.00 1,710.00 1,837.26 1,973.98 2,120.88
Source Analyst x1 Analyst x1 Est @ 7.44% Est @ 7.44% Est @ 7.44%
Present Value
Discounted (@ 13.55%)
-1,914.64 1,326.33 1,255.03 1,187.56 1,123.72
Present value of next 5 years cash flows ₹2,978.00
NSEI:DEEPAKNI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= ₹2,120.88 × (1 + 7.73%) ÷ (13.55% – 7.73%)
₹39,285.20
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= ₹39,285.20 ÷ (1 + 13.55%)5
₹20,814.68
NSEI:DEEPAKNI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= ₹2,978.00 + ₹20,814.68
₹23,792.68
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹23,792.68 / 136.39
₹174.75
NSEI:DEEPAKNI Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:DEEPAKNI represents 1.00174x of BSE:506401
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00174x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 174.44 x 1.00174
₹174.75
Value per share (INR) From above. ₹174.75
Current discount Discount to share price of ₹229.95
= -1 x (₹229.95 - ₹174.75) / ₹174.75
-31.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Deepak Nitrite is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Deepak Nitrite's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Deepak Nitrite's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:DEEPAKNI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹6.00
BSE:506401 Share Price ** BSE (2018-12-18) in INR ₹229.55
India Chemicals Industry PE Ratio Median Figure of 238 Publicly-Listed Chemicals Companies 15.97x
India Market PE Ratio Median Figure of 2,724 Publicly-Listed Companies 17.08x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Deepak Nitrite.

NSEI:DEEPAKNI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:506401 Share Price ÷ EPS (both in INR)

= 229.55 ÷ 6.00

38.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Deepak Nitrite's expected growth come at a high price?
Raw Data
NSEI:DEEPAKNI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 38.24x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
50.4%per year
India Chemicals Industry PEG Ratio Median Figure of 69 Publicly-Listed Chemicals Companies 1.09x
India Market PEG Ratio Median Figure of 651 Publicly-Listed Companies 1.13x

*Line of best fit is calculated by linear regression .

NSEI:DEEPAKNI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 38.24x ÷ 50.4%

0.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deepak Nitrite is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Deepak Nitrite's assets?
Raw Data
NSEI:DEEPAKNI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹67.61
BSE:506401 Share Price * BSE (2018-12-18) in INR ₹229.55
India Chemicals Industry PB Ratio Median Figure of 274 Publicly-Listed Chemicals Companies 1.69x
India Market PB Ratio Median Figure of 3,549 Publicly-Listed Companies 1.17x
NSEI:DEEPAKNI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:506401 Share Price ÷ Book Value per Share (both in INR)

= 229.55 ÷ 67.61

3.4x

* Primary Listing of Deepak Nitrite.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deepak Nitrite is overvalued based on assets compared to the IN Chemicals industry average.
X
Value checks
We assess Deepak Nitrite's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Deepak Nitrite has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Deepak Nitrite expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
50.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Deepak Nitrite expected to grow at an attractive rate?
  • Deepak Nitrite's earnings growth is expected to exceed the low risk savings rate of 7.7%.
Growth vs Market Checks
  • Deepak Nitrite's earnings growth is expected to exceed the India market average.
  • Deepak Nitrite's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:DEEPAKNI Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:DEEPAKNI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 50.4%
NSEI:DEEPAKNI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 30.6%
India Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 17.9%
India Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 14%
India Market Earnings Growth Rate Market Cap Weighted Average 19.1%
India Market Revenue Growth Rate Market Cap Weighted Average 11.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:DEEPAKNI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (8 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:DEEPAKNI Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 42,280 1
2020-03-31 39,609 2,410 2,144 4
2019-03-31 27,607 526 1,222 4
NSEI:DEEPAKNI Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 16,515 1,830 790
2017-03-31 13,707 490 963
2016-03-31 13,729 1,673 627

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Deepak Nitrite's earnings are expected to grow significantly at over 20% yearly.
  • Deepak Nitrite's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:DEEPAKNI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (8 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Deepak Nitrite Company Filings, last reported 8 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:DEEPAKNI Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31
2020-03-31 15.73 16.70 14.76 2.00
2019-03-31 9.00 9.00 9.00 1.00
NSEI:DEEPAKNI Past Financials Data
Date (Data in INR Millions) EPS *
2018-03-31 6.00
2017-03-31 8.21
2016-03-31 5.85

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Deepak Nitrite is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Deepak Nitrite's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Deepak Nitrite has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Deepak Nitrite performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Deepak Nitrite's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Deepak Nitrite has delivered over 20% year on year earnings growth in the past 5 years.
  • Deepak Nitrite's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Deepak Nitrite's 1-year earnings growth is negative, it can't be compared to the IN Chemicals industry average.
Earnings and Revenue History
Deepak Nitrite's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Deepak Nitrite Company Filings, last reported 8 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:DEEPAKNI Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 16,514.54 790.16 1,389.86
2017-03-31 13,707.05 963.15 1,272.96
2016-03-31 13,729.30 627.31 1,214.55
2015-03-31 13,271.62 529.03 1,012.20
2014-12-31 13,487.19 540.72 1,674.64
2014-09-30 13,805.30 526.88 1,657.95
2014-06-30 13,317.80 443.60 1,613.67
2014-03-31 12,696.29 383.29 1,571.80
2013-12-31 12,231.15 318.90 1,251.34
2013-09-30 11,384.50 296.71 1,152.92
2013-06-30 10,708.12 293.66 1,113.69
2013-03-31 10,194.00 378.24 1,066.28
2012-12-31 9,355.16 379.79 923.24
2012-09-30 8,972.54 334.52 911.53
2012-06-30 8,306.42 290.87 990.91
2012-03-31 7,898.92 230.83 843.54
2011-12-31 7,547.87 213.21 772.42 46.28

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Deepak Nitrite has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Deepak Nitrite used its assets less efficiently than the IN Chemicals industry average last year based on Return on Assets.
  • Deepak Nitrite's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Deepak Nitrite's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Deepak Nitrite has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Deepak Nitrite's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Deepak Nitrite's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Deepak Nitrite's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Deepak Nitrite's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Deepak Nitrite's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Deepak Nitrite Company Filings, last reported 8 months ago.

NSEI:DEEPAKNI Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 9,221.38 9,865.44 693.33
2017-03-31 7,148.66 7,238.91 1,251.60
2016-03-31 4,728.64 5,288.08 902.79
2015-03-31 3,462.21 5,445.14 30.64
2014-12-31 3,314.54 4,964.10 23.45
2014-09-30 3,314.54 4,964.10 23.45
2014-06-30 3,075.22 5,084.10 64.41
2014-03-31 3,075.22 5,084.10 64.41
2013-12-31 2,919.11 4,550.77 61.24
2013-09-30 2,919.11 4,550.77 61.24
2013-06-30 2,805.97 3,411.59 95.01
2013-03-31 2,805.97 3,411.59 95.01
2012-12-31
2012-09-30
2012-06-30 2,527.78 2,609.40 935.38
2012-03-31 2,527.78 2,609.40 935.38
2011-12-31 2,467.12 1,417.16 498.77
  • Deepak Nitrite's level of debt (107%) 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 (121.6% vs 107% today).
  • Debt is not well covered by operating cash flow (18.5%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
X
Financial health checks
We assess Deepak Nitrite's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Deepak Nitrite has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.57%
Current annual income from Deepak Nitrite dividends.
If you bought ₹2,000 of Deepak Nitrite shares you are expected to receive ₹11 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Deepak Nitrite's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.51%).
  • Deepak Nitrite's dividend is below the markets top 25% of dividend payers in India (1.77%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:DEEPAKNI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
India Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 165 Stocks 0.9%
India Market Average Dividend Yield Market Cap Weighted Average of 1394 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:DEEPAKNI Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31
2020-03-31
2019-03-31
NSEI:DEEPAKNI Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-07-11 1.300 0.511
2018-05-04 1.300 0.531
2017-04-28 1.200 0.608
2016-05-09 1.200 1.170
2015-08-10 1.000 1.532
2014-07-21 1.000 1.335
2014-05-02 1.000 1.261
2013-07-23 0.800 2.696
2013-05-09 0.800 3.029
2012-07-12 0.600 2.730
2011-07-14 0.600 3.670
2010-05-14 0.500 2.690
2009-06-01 0.500 3.709
2009-05-14 0.500 3.672
2008-12-19 0.400 4.469

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Deepak Nitrite's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.6x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Deepak Nitrite's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Deepak Nitrite afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Deepak Nitrite has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Umesh Asaikar
COMPENSATION ₹47,073,000
AGE 63
TENURE AS CEO 10.3 years
CEO Bio

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 of Deepak Nitrite Limited. Mr. Asaikar served as a Director of Pharmaceuticals at Piramal Glass Ltd. until March 31, 2008. Mr. Asaikar has around 36 years of varied experience in the areas of Sales & Marketing, Manufacturing, Commercial and Business Management across industries including pharmaceuticals, vitamins & fine chemicals, glass flacconage etc. Mr. Asaikar has held various leadership positions in companies such as Parke Davis, Nicholas Piramal, Piramal Glass, etc. He holds a Bachelor's degree in Mechanical Engineering from the Indian Institute of Technology, Mumbai and Master's degree in Management Science from Jamnalal Bajaj Institute of Management Studies. He is also a member of the Institute of Cost Accountants of India.

CEO Compensation
  • Umesh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Umesh's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Deepak Nitrite management team in years:

4.6
Average Tenure
58
Average Age
  • The tenure for the Deepak Nitrite management team is about average.
Management Team

Deepak Mehta

TITLE
Chairman & MD
COMPENSATION
₹63M
AGE
62
TENURE
2.3 yrs

Umesh Asaikar

TITLE
CEO & Executive Director
COMPENSATION
₹47M
AGE
63
TENURE
10.3 yrs

Sanjay Upadhyay

TITLE
Director of Finance
COMPENSATION
₹21M
AGE
57
TENURE
1.7 yrs

Arvind Bajpai

TITLE
Company Secretary & Compliance Officer
AGE
46
TENURE
4.6 yrs

Maulik Mehta

TITLE
Associate VP & Whole-Time Director
COMPENSATION
₹10M
AGE
35
TENURE
5.2 yrs

Jagdeep Vyas

TITLE
Senior General Manager of Accounts & Taxation
AGE
58

Nilesh Dave

TITLE
Vice President of Human Resources
AGE
60

Girish Satarkar

TITLE
President of Bulk Chemicals
COMPENSATION
₹7M
AGE
54

Jaydip Chowdhury

TITLE
Head of Corporate Affairs & Communications

Pramod Garg

TITLE
President of Bulk Chemicals & Commodities
COMPENSATION
₹8M
AGE
60
Board of Directors Tenure

Average tenure and age of the Deepak Nitrite board of directors in years:

2.6
Average Tenure
63.5
Average Age
  • The average tenure for the Deepak Nitrite board of directors is less than 3 years, this suggests a new board.
Board of Directors

Umesh Asaikar

TITLE
CEO & Executive Director
COMPENSATION
₹47M
AGE
63
TENURE
5.6 yrs

Chimanlal Mehta

TITLE
Chairman Emeritus
COMPENSATION
₹160K
AGE
86
TENURE
2.3 yrs

Deepak Mehta

TITLE
Chairman & MD
COMPENSATION
₹63M
AGE
62
TENURE
2.3 yrs

Sanjay Upadhyay

TITLE
Director of Finance
COMPENSATION
₹21M
AGE
57
TENURE
1.7 yrs

Maulik Mehta

TITLE
Associate VP & Whole-Time Director
COMPENSATION
₹10M
AGE
35
TENURE
2.6 yrs

Sudhin Choksey

TITLE
Independent Director
COMPENSATION
₹995K
AGE
64
TENURE
13.3 yrs

Sudhir Mankad

TITLE
Independent Director
COMPENSATION
₹980K
AGE
71
TENURE
9.6 yrs

Sandesh Anand

TITLE
Independent Director
COMPENSATION
₹1M
AGE
76
TENURE
7.1 yrs

Ajay Mehta

TITLE
Director
COMPENSATION
₹7M
AGE
59
TENURE
1 yrs

Nimesh Kampani

TITLE
Independent Director
COMPENSATION
₹645K
AGE
72
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Deepak Nitrite's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Deepak Nitrite has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
Loading...
Simply Wall St News

Is Deepak Nitrite Limited's (NSE:DEEPAKNI) High P/E Ratio A Problem For Investors?

To keep it practical, we'll show how Deepak Nitrite Limited's (NSE:DEEPAKNI) P/E ratio could help you assess the value on offer. … How Do I Calculate Deepak Nitrite's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Is Now The Time To Look At Buying Deepak Nitrite Limited (NSE:DEEPAKNI)?

This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether Deepak Nitrite's current trading price of ₹257.65 reflective of the actual value of the? … Let’s take a look at Deepak Nitrite’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

What Percentage Of Deepak Nitrite Limited (NSE:DEEPAKNI) Shares Do Insiders Own?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Deepak Nitrite is a smaller company with a market capitalization of ₹35b, so it may still be flying under the radar of many institutional investors. … View our latest analysis for Deepak Nitrite

Simply Wall St -

With A -18% Earnings Drop, Did Deepak Nitrite Limited (NSE:DEEPAKNI) Really Underperform?

When Deepak Nitrite Limited (NSE:DEEPAKNI) announced its most recent earnings (31 March 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … Was DEEPAKNI's recent earnings decline worse than the long-term trend and the industry. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 24%, indicating the rate at which DEEPAKNI is growing has slowed down

Simply Wall St -

What Investors Should Know About Deepak Nitrite Limited's (NSE:DEEPAKNI) Financial Strength

While small-cap stocks, such as Deepak Nitrite Limited (NSE:DEEPAKNI) with its market cap of ₹33.0b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … since poor capital management may bring about bankruptcies, … I believe these basic checks tell most of the story you need to know.

Simply Wall St -

Why We Think Deepak Nitrite Limited (NSE:DEEPAKNI) Could Be Worth Looking At

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of Deepak Nitrite Limited (NSE:DEEPAKNI), it

Simply Wall St -

How Did Deepak Nitrite Limited's (NSE:DEEPAKNI) 8.6% ROE Fare Against The Industry?

Deepak Nitrite Limited (NSE:DEEPAKNI) generated a below-average return on equity of 8.6% in the past 12 months, while its industry returned 14.2%. … An investor may attribute an inferior ROE to a relatively inefficient performance, and whilst this can often be the case, knowing the nuts and bolts of the ROE calculation may change that perspective and give you a deeper insight into DEEPAKNI's past performance. … Check out our latest analysis for Deepak Nitrite

Simply Wall St -

Deepak Nitrite Limited (NSE:DEEPAKNI): Risks You Need To Consider Before Buying

Generally, an investor should consider two types of risk that impact the market value of DEEPAKNI. … The other type of risk, which cannot be diversified away, is market risk. … A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one.

Simply Wall St -

Should You Be Concerned About Deepak Nitrite Limited's (NSE:DEEPAKNI) Shareholders?

In this article, I'm going to take a look at Deepak Nitrite Limited’s (NSE:DEEPAKNI) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Although this is an important factor for long-term investors, many investors can also be impacted by institutional presence and their high-volume trading. … See our latest analysis for Deepak Nitrite

Simply Wall St -

Is Deepak Nitrite Limited (NSE:DEEPAKNI) Attractive At Its Current PE Ratio?

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … While DEEPAKNI might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.

Simply Wall St -

Company Info

Map
Description

Deepak Nitrite Limited manufactures and sells basic chemicals, fine and specialty chemicals, and performance products in India. The company's Basic Chemicals segments offers intermediates for dyes and pigments, rubber, fuel additives, pharmaceuticals, agrochemicals, and explosives. Its Fine and Speciality Chemicals segment provides products for agrochemicals, pigment pharmaceuticals, and personal care products. The company's Performance Products segment offers optical brighteners; and products for paper, detergent, and textile industries. It also exports its products to Europe, the United States, rest of Asia, and internationally. Deepak Nitrite Limited was founded in 1970 and is based in Vadodara, India.

Details
Name: Deepak Nitrite Limited
DEEPAKNI
Exchange: NSEI
Founded: 1970
₹31,745,480,292
136,393,041
Website: http:// www.deepaknitrite.com
Address: Deepak Nitrite Limited
Aaditya-I,
National Highway No. 8,
Vadodara,
Gujarat, 390024,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 506401 Equity Shares Mumbai Stock Exchange IN INR 11. Jul 1995
NSEI DEEPAKNI Equity Shares National Stock Exchange of India IN INR 11. Jul 1995
Number of employees
Current staff
Staff numbers
1,392
Deepak Nitrite employees.
Industry
Commodity Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/18 12:51
End of day share price update: 2018/12/18 00:00
Last estimates confirmation: 2018/11/12
Last earnings filing: 2018/07/11
Last earnings reported: 2018/03/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.