1 DEEPAKNTR share price target reports by brokerages below. See what is analyst's view on DEEPAKNTR share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
The stock currently trades at 11.1x FY20 EPS of Rs 41.18 and 13.5x FY21e EPS of Rs 33.82. Perilous impact of the virus has shrouded near term business visibility, precipitating some 15% cut in FY21 EPS on lower revenues; Peaking of its performance products margins would doubtlessly take the spin from its current year earnings. Yet partial lifting of trade restrictions and resuscitation of crude oil prices would support a gradual recovery. Commencement of acetone based downstream products sometime in the second quarter of current fiscal would prop up revenues and so would recovery in cracks of phenol and acetone. Balancing odds, we advise accumulating the stock with revised target of Rs 541 (previous target: Rs 396) based on 16x FY21 earnings.
The stock currently trades at 21.7x FY19e EPS of Rs 11.94 and 15.6x FY20e EPS of Rs 16.58. Reduced imports from China coupled with higher dependence on agro chemicals sector, largely explains the recent robustness in performance chemicals business, triggering increased output of both DASDA and OBA. Estimate of some 38.8% growth in earnings next fiscal largely hinges on seamless domestic penetration of phenol & acetone market. Chinese government's expansive crackdown on polluting industries would support domestic off take of agrochemicals, dyes and pigments; though seasonality of agro chemicals business is no small threat. On balance, we maintain our buy rating on the stock with revised target of Rs 332 (previous target: Rs 295) based on 20x FY20e earnings, over a period of 9 months.
On a rough cut basis, in FY19, Topline will see a steady rise wherein Topline is expected to touch Rs 2600 crs in FY19E. On the bottomline level we expect the company to record a PAT of Rs 155 crs in FY19E. Thus on a conservative basis, DNL should record a EPS of Rs 11.37 for FY19E. For FY20E and FY21E our expectation is that earnings traction for DNL would continue to be strong wherein we expect a EPS of Rs 18 and Rs 23 respectively.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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