Deepak Fertilizers – Multibagger Analysis

Deepak Fertilizers – Multibagger Analysis

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

Website: http://www.dfpcl.com/DFPCL/



Warren Buffett Checklist

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

Company have good portfolio & client base.

Future Growth DriversAgriculture 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 AverageWe prefer at least 20 for ROE, but company have only 11.image
Low CAPEX required to maintain current operationsHigh CAPEX required.image
Management is holding / buying the stockPromoters are increasing stake.  Good Sign.image
Price is Under Valued (< intrinsic value)Yes.image
Stock Price is consolidatingYes.image

Additional Futurecaps Checklist

PE, PB RatioPE within 5 & PB within ratio 1.  Means under-valued.image
Cash Flow PositiveNot.image
Paying Dividends, TaxYes.  Company have impressive dividend yield of 5%image
EPS Growth Rate20% growth is visible, which is good although not impressive.image
Expected Gain in 10 YearsWe can expect around 5-10 times growth for the stock.image
Power of BrandBranding attracts more sales, more profit margins!image
Corporate Governance, Reputation of LeadersOverall good.image
Fraud reportedNot.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.

About Futurecaps

Futurecaps is a 12+ year experienced Indian Stock Market Advisory with SEBI Registration.

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