Fact based stock research
Deepak Nitrite (BSE:506401)

INE288B01029

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Deepak Nitrite stock research in summary

deepaknitrite.com

ANALYSIS: With an Obermatt Combined Rank of 83 (better than 83% compared with investment alternatives), Deepak Nitrite (Commodity Chemicals, India) shares have much better financial characteristics than comparable stocks. Shares of Deepak Nitrite are low in value (priced high) with a consolidated Value Rank of 35 (worse than 65% of alternatives). But they show above-average growth (Growth Rank of 93) and are safely financed (Safety Rank of 61, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 83, is a strong buy recommendation based on Deepak Nitrite's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Deepak Nitrite exhibits low value (Obermatt Value Rank of 35), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 93). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 61) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	35
Growth Rank	93
Safety Rank	61
Combined Rank	83

Country	India
Industry	Commodity Chemicals
Index
Size class	Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Deepak Nitrite

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	17	33	37	35
GROWTH
GROWTH	93	69	87	93
SAFETY
SAFETY	58	23	65	61
SENTIMENT
SENTIMENT	n/a	60	45	^new
360° VIEW
360° VIEW	n/a	37	76	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 31-Mar-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Deepak Nitrite is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	17	33	37	35
GROWTH
GROWTH	93	69	87	93
SAFETY
SAFETY	58	23	65	61
COMBINED
COMBINED	60	23	79	83

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Deepak Nitrite the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 35 (worse than 65% compared with alternatives), Deepak Nitrite shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Deepak Nitrite. Price-to-Sales (P/S) is 54, which means that the stock price compared with what market professionals expect for future sales is lower than 54% of comparable companies, indicating a good value concerning to Deepak Nitrite's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 23, meaning that dividends are expected to be lower than for 77% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 66% of alternatives (only 34% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 59% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 35, is a hold recommendation based on Deepak Nitrite's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Deepak Nitrite could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Deepak Nitrite looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	15	36	49	54
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	44	41	48	41
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	4	23	34	34
DIVIDEND YIELD
DIVIDEND YIELD	38	20	26	23
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	17	33	37	35

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Deepak Nitrite; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 93 (better than 93% compared with alternatives) for 2024, Deepak Nitrite shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Deepak Nitrite. Sales Growth has a value of 65, which means that, currently, professionals expect the company to grow more than 65% of its competitors. The same is valid for Profit Growth with a value of 61 and for Capital Growth with 95. In addition, Stock Returns had an above-average rank value of 61, which means they have been higher than 61% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 93, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Deepak Nitrite exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	81	15	72	65
PROFIT GROWTH
PROFIT GROWTH	n/a	74	43	61
CAPITAL GROWTH
CAPITAL GROWTH	n/a	61	98	95
STOCK RETURNS
STOCK RETURNS	94	100	53	61
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	93	69	87	93

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Deepak Nitrite.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 61 (better than 61% compared with alternatives), the company Deepak Nitrite has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Deepak Nitrite is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Deepak Nitrite. Leverage is at a rank of 64, meaning the company has a below-average debt-to-equity ratio. It has less debt than 64% of its competitors. Liquidity is also good at a rank of 76, meaning the company generates more profit to service its debt than 76% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 40, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 60% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 61 (better than 61% compared with alternatives), Deepak Nitrite has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Deepak Nitrite. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Deepak Nitrite and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	48	44	84	64
REFINANCING
REFINANCING	30	28	40	40
LIQUIDITY
LIQUIDITY	87	39	62	76
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	58	23	65	61

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Deepak Nitrite and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	51	36	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	42	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	78	57	^new
MARKET PULSE
MARKET PULSE	n/a	27	62	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	60	45	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Deepak Nitrite.
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