Deepak Fertilisers: Fertile Ground for Growth + Breakout Setup
Deepak Fertilisers & Petrochemicals Corp (NSE: DEEPAKFERT) is a key Indian player in fertilisers, industrial and mining chemicals. The company’s FY25 results show solid growth momentum.
Financial Highlights
Revenue: ~₹1.02 Lakh Cr in FY25 vs ~₹0.87 Lakh Cr in FY24 → strong YoY growth.
Net Profit: Jumped to ~₹9,336 Cr in FY25, almost 2× last year.
Margins: EBITDA margin ~30%+, Net margin ~9.2% TTM.
Return Ratios: ROE ~15%, respectable for the industry.
Debt Position: Total debt ~₹41,500 Cr vs assets ~₹1.31 Lakh Cr → leverage risk to watch.
Cash Flows: Positive operating cash (~₹18,800 Cr), supporting capex & debt repayment.
Valuation: P/E ~18–20x, P/B ~3.2x, dividend yield ~0.6%.
✅ Strengths: diversified operations, strong growth, healthy cash flows.
⚠️ Risks: high leverage, commodity price volatility, regulatory & subsidy dependency.
Investor View: Fundamentally sound with cyclical challenges — suitable for accumulation on dips.
Technical Analysis
The stock completed a falling wedge breakout, signaling bullish reversal.
Support Zone: ₹1,363 – ₹1,431 → key long-term support.
Reversal Zone: ₹1,424 – ₹1,488 (green box) → strong buying zone if retested.
Immediate Resistance (R1): ₹1,595
Next Resistance (R2): ₹1,710
Major Resistance (R3): ₹1,805
Conclusion
Deepak Fertilisers presents a strong Techno-Fundamental opportunity:
Fundamentals: Healthy growth, good profitability, but leverage risk.
Technicals: Breakout from wedge pattern with upside targets ₹1,710 – ₹1,805.
Disclaimer: tinyurl.com/59ypbsrh
Financial Highlights
Revenue: ~₹1.02 Lakh Cr in FY25 vs ~₹0.87 Lakh Cr in FY24 → strong YoY growth.
Net Profit: Jumped to ~₹9,336 Cr in FY25, almost 2× last year.
Margins: EBITDA margin ~30%+, Net margin ~9.2% TTM.
Return Ratios: ROE ~15%, respectable for the industry.
Debt Position: Total debt ~₹41,500 Cr vs assets ~₹1.31 Lakh Cr → leverage risk to watch.
Cash Flows: Positive operating cash (~₹18,800 Cr), supporting capex & debt repayment.
Valuation: P/E ~18–20x, P/B ~3.2x, dividend yield ~0.6%.
✅ Strengths: diversified operations, strong growth, healthy cash flows.
⚠️ Risks: high leverage, commodity price volatility, regulatory & subsidy dependency.
Investor View: Fundamentally sound with cyclical challenges — suitable for accumulation on dips.
Technical Analysis
The stock completed a falling wedge breakout, signaling bullish reversal.
Support Zone: ₹1,363 – ₹1,431 → key long-term support.
Reversal Zone: ₹1,424 – ₹1,488 (green box) → strong buying zone if retested.
Immediate Resistance (R1): ₹1,595
Next Resistance (R2): ₹1,710
Major Resistance (R3): ₹1,805
Conclusion
Deepak Fertilisers presents a strong Techno-Fundamental opportunity:
Fundamentals: Healthy growth, good profitability, but leverage risk.
Technicals: Breakout from wedge pattern with upside targets ₹1,710 – ₹1,805.
Disclaimer: tinyurl.com/59ypbsrh
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