Deepak Fertilizers – Multibagger Analysis

Deepak Fertilizers and Petrochemicals Corporation Limited is a producer of industrial chemicals and fertilizers.




Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Sales & Profits are increasing. image
Durable Competitive Advantage 

Company have good portfolio & client base.

Future Growth Drivers Agriculture Industry is growing. image
Conservative Debt (long term debt < 3 Net Profit) A tight match, but it is less than 3x of profit. image
Return on Equity must be Above Average We prefer at least 20 for ROE, but company have only 11. image
Low CAPEX required to maintain current operations High CAPEX required. image
Management is holding / buying the stock Promoters are increasing stake.  Good Sign. image
Price is Under Valued (< intrinsic value) Yes. image
Stock Price is consolidating Yes. image

Additional Futurecaps Checklist

PE, PB Ratio PE within 5 & PB within ratio 1.  Means under-valued. image
Cash Flow Positive Not. image
Paying Dividends, Tax Yes.  Company have impressive dividend yield of 5% image
EPS Growth Rate 20% growth is visible, which is good although not impressive. image
Expected Gain in 10 Years We can expect around 5-10 times growth for the stock. image
Power of Brand Branding attracts more sales, more profit margins! image
Corporate Governance, Reputation of Leaders Overall good. image
Fraud reported Not. image





Based on the parameters above, we declare Deepak Fertilizers as a multi-bagger.  Installment Buy especially optimized for Monsoon seasons would be a good idea.


Not more than 2.5% of your portfolio.


Futurecaps recommends 20 to 25 multibaggers per year, we recommend a 25% to 50% allocation of your savings in equity.  The stocks recommended here are gone through Analysts of several years experience in stock market.  Although they were successful in predicting future multibaggers, the overall stock market is a risky game.  So we recommend the reader to put his/her own thoughts & invest wisely.

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