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Check Before You Invest : Damodar Industries Ltd

BSE: 521220 NSE: DAMODARIND ISIN: INE497D01022
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Spinning

Snapshot

Q.1 Which industry/sub-sector does Damodar Industries Ltd belong to?
Damodar Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.
Q.2 Is Damodar Industries Ltd a good quality company?
Damodar Industries Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Damodar Industries Ltd undervalued or overvalued?
Damodar Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Damodar Industries Ltd a good buy now?
Damodar Industries Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Damodar Industries Ltd?
Damodar Industries Ltd revenue growth is -41.1% for FY-2025 , which is below its 5 year CAGR of -11.3% , indicating slower growth.
Q.2 Gross Profit margin of Damodar Industries Ltd?
Damodar Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.5% for FY-2025 , which is above its 5 year median of 3.9% , indicating increasing margins.
Q.3 Operating Profit Margin of Damodar Industries Ltd?
Damodar Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.5% for FY-2025 , which is below its 5 year median of 5.43% indicating decreasing margins.
Q.4 Net Profit Margin of Damodar Industries Ltd?
Damodar Industries Ltd Net Profit Margin is 1.28% for FY-2025 , is above with its 5 year median of 0.73%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 5.5 3.9
Operating Profit Margin 4.5 5.43
Net Profit Margin 1.28 0.73
Q.5 Return on Asset of Damodar Industries Ltd?
Damodar Industries Ltd Return on Asset is 1.4%, which is above its 5 year historical median of 1.21%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Damodar Industries Ltd?
Damodar Industries Ltd Return on equity is 4.09% for FY-2025 , which is in line with its historical median of 4.09%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Damodar Industries Ltd?
Damodar Industries Ltd Return on capital employed is 6.75% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Damodar Industries Ltd?
Damodar Industries Ltd Cash conversion cycle is 132 days, above its historical median of 94 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.09 1.52
ROE 4.09 4.09
ROCE 6.75 6.75
Cash Conversion Cycle 132 days 94 days
Q.9 Debt to Equity ratio of Damodar Industries Ltd?
Damodar Industries Ltd Debt-to-Equity ratio is 1.31 , which is above with the industry average of 0.36 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Damodar Industries Ltd?
Damodar Industries Ltd Debt to cash flow from operations is 5.03 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Damodar Industries Ltd?
Promoters hold 70.21% of the Damodar Industries Ltd, with 30.20% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Damodar Industries Ltd vs industry peers?
Damodar Industries Ltd revenue CAGR is -11.31% , compared to the industry median CAGR of 1.47% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 421.4 118.3
Gross Profit 23.2 3
Operating Profit 19 4.4
Net Profit 5.4 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.09 0.94
ROE 4.09 -
ROCE 6.75 5.99
Cash Conversion Cycle (days) 132.32 61

Valuation & price assessment

Q.1 Stock return of Damodar Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -2% 5.4% -10.9% -6.6%
Q.3 Valuation ratios of Damodar Industries Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 8.06 0.00 19.51
Price to Book 0.42 0.67 0.73
Price to Sales 0.15 0.10 0.34
EV to EBITDA 5.27 0.00 7.32

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