#LONG on DEEPAK FERTILISERS: Triangle pattern Breakout (Weekly)
Deepak Fertilisers reached an ATH of 1062 in the 3rd week of Oct'22 and then corrected by approximately 52% to reach a low of 512.40 in Mar'23. It took support from the base of the triangle pattern and resumed uptrend.
On 1st June'23, the scrip succesfully broke out of the triangle pattern reaching a high of 570, followed by 1 month of consolidation.Last week, the scrip has risen by 9%, forming a large bullish candle on weekly chart.
Yesterday, it rose by 1.99%. Targets seem achievable in 6 months.
Potential upside: 60% to 90% (Medium Term)
Maintain Strict Stop Loss: 583 (daily closing basis).
Deepakfertilizers
Deepak Fertilizers cmp 1118.75 by Weekly Chart views*Deepak Fertilizers cmp 1118.75 by Weekly Chart views*
- Support Zone 940 to 955 Price Band
- Resistance Zone at 1115 to 1135 Price Band
- Volumes are needed for fresh upside for a New Lifetime High
- Weekly basis Support at 1005 > 885 > 780 with Resistance only at ATH 1163.85
- *Close to 2 year's long Bullish Rounding Bottom followed by a Price Breakout well above earlier Resistance Zone now acting as the Support Zone*
Switch on the Geyser. Time to Shower with Deepak FertilizerPE Ratio is 8 while Sector PE ratio of 53
- Company has delivered good profit growth of 49.7% CAGR over last 5 years
- Annual Revenue rose 47.7%, in the last year to Rs 11,384.7 Crores. Its sector's average revenue growth for the last fiscal year was 17.2%.
- Annual Net Profit rose 78.4% in the last year to Rs 1,210.1 Crores. Its sector's average net profit growth for the last fiscal year was 5.9%
- Mutual Fund Holding increased by 0% in the last quarter to 1.4.
- Return on Equity for the last financial year was 23.9%.
Negative:
- Quarterly Net profit fell 74.6% YoY to Rs 110 Crores. Its sector's average net profit growth YoY for the quarter was -45.1%.
- Promoter Pledges rose 7.5% QoQ taking the total promoter holding pledge % to 22.6%.
Deepak Fertilizers and Petrochemicals Corporation Ltd is a manufacturer of fertilizers and industrial chemicals with products in industrial chemicals, bulk and specialty fertilizers, farming diagnostics and solutions, technical ammonium nitrate and value added real estate, which includes India’s 1st & largest concept retail destination for Home Interiors & Design. Company is also investing in cloud computing, process automation, mobile apps, unified communication, and collaboration tools.
New Products in FY22
a) Company launched Crop Nutrient Solution brand Croptek with 3 crop specific grades Croptek Onion, Croptek Sugarcane, Croptek Cotton, and also launched Crop Specific and stage specific brand Solutek for fertigation
b) Company's IC business unit launched 8 different products for disinfection solutions in the hospital segment
Operational Highlights - Q4FY23
a) Acid business achieved a capacity utilization of 89% while the IPA business reached 98%. CNB Bulk (NP + NPK) had a capacity utilization of 55%
b) Company developed a technology to manufacture Pure DIPE from crude DIPE first time in India and has completed the commercial trial successfully
c) Steel grade Nitric acid for steel pickling application has completed its multi-stage commercial trials successfully and will soon be launched commercially
Capex - FY23:
a) Ammonia:
It has a capacity of 128,700 MTPA and company plans to increase it to 628,700 MTPA. For that, it has planned an Investment of Rs. 4,350 Cr. Company, through its stepdown subsidiary Performance Chemiserve Ltd, is setting up an ammonia manufacturing facility of 1,500 MTPD at Taloja
b) TAN:
Technical Ammonium Nitrate has a capacity of 486,900 MTPA which is planned to increase to 862,900 MTPA by H2 FY26 with an Investment of Rs. 2,201 Cr
Deepak FertilisersGraham number: 1094.98
Debt to Equity: 0.73
P/E: 4.54
Industry P/E: 15.48
P/E is in FairValue Zone
Current Ratio: 1.28
Profitable
Continuously giving divident
Warning: Only for education purpose. Investments in stock market is subjected to market risk do own researches before investing.
DEEPAKFERT - Ichimoku Bullish Breakout Stock Name - Deepak Fertilizers And Petrochemicals Corporation Limited
Ichimoku Cloud Setup :
1). Today's close is above the Conversion Line
2). Future Kumo is Turning Bullish
3). Chikou span is slanting upwards
All these parameters are showing bullishness at Current Market Price
and more bullishness AFTER crossing 1048.
#This is not Buy and Sell recommendation to any one. This is for education purpose and a helping hand to learn trading in Market.
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INVESTMENT IDEA FOR DEEPAVALI - 2022#DEEPAKFERT can be a very good investment pick for Deepavali - 2022 for following reasons:
1. Stock has given a Cup & Handle Break Out around 510-515 levels, and after that made a high of 997. Currently stock is making Higher Highs - Higher Lows.
2. Stock is currently trading near ATH & expected to break HH-HL structure and give us a fresh ATH Break Out after which we can expect 1200+ in this soon. (I'd wait not book in any rise but short term investors may consider booking around 1200-1250 levels, or atleast do partial booking)
3. Even if stock doesn't give ATH Break Out & faces resistance, stock would find decent support at channel bottom around 740-750 levels to make a new HL, & again rise to make a new HH as the trend is up.
4. 715-740 is gap zone which would act as mother of all supports, thus this is our SL on Monthly Closing Basis.
5. Add now at CMP & more about ATH Break Out OR Add now at CMP & more around 740-750 levels, whichever works for you.
6. Even though I am very positive about this pick but as well know that investment is subject to risk, so please consult your financial adviser before investing.
Cup and Handle Break Out in Deepak FertilizerCHART ->Deepak Fertilizer WEEKLY SETUP
As seen per charts, there are few things to note:
1. In weekly time frame, it has given a huge cup and handle breakout.
2. Last breakout candle has been with good volume.
3. MACD crossover in the breakout candle.
4. Not for technical point of view but we have to take a note that -> FII INCREASED THEIR STAKE BY 10% IN COMPANY DURING Q3.
Disclaimer: This is for educational purpose only. This is not any recommendations. I am not SEBI registered. Please consult your financial advisor before taking any action.
DEEPAKFERT - Huge Cup & Handle Breakout -More than 88% potentialThe analysis is done on weekly TF hence price may take few weeks to few months in order to reach the targets.
Trade setup is explained in image itself.
The above analysis is purely for educational purpose. Traders must do their own study & follow risk management before entering into any trade
Checkout my other ideas to understand how one can earn from stock markets with simple trade setups. Feel Free to comment below this or connect with me for any query or suggestion regarding this stock or Price Action Analysis.
Deepak Fertilizers Breakout ?Deepak Fertilizers were given breakout from Resistance Zone and finished Restest it seems, factors that strengthen Breakout are good Consolidation at Resistance zone & Took support @ Support Zone, If We observe in Day frame it seems like Upper flag (Bullish). We can enter @ CMP by keeping 450 as 1st TGT & 490 as 2nd TGT. Sl if Price closes below 398 level.
*Always Enter With good confirmation & Maintain proper Risk Reward.
**********I am not a SEBI registered adviser. All the information provided by me is for educational/informational purposes only. **********
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DEEPAKFERT || Will Sustainable Multiyear breakout come ? NSE:DEEPAKFERT
This stock is for people who are looking for investing for short/mid term time. (1 -3 months).
From the chart it is easy to see that Safe buy will be on breakout of 492 level which is recent high.
One can also take entry from CMP. But I can see that it will consolidate a bit between 400-480 level before giving breakout on any side.
I can see Target of 600-720 for short/mid term time if it sustain above 492 level after breakout.
Please note: : This is just for educational analysis and it is not any financial/investing advise.
You can keep this stock on your watch-list /radar.
Better to take advise from your financial advisor before considering for any investment.