Check Before You Invest : Danish Power Ltd

Snapshot

Q.1 Which industry/sub-sector does Danish Power Ltd belong to?

Danish Power Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is Danish Power Ltd a good quality company?

Danish Power Ltd is a average quality company, based on a somewhat consistent 4-year financial track record.

Q.3 Is Danish Power Ltd undervalued or overvalued?

Danish Power Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Danish Power Ltd a good buy now?

Danish Power Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Danish Power Ltd?

Danish Power Ltd revenue growth is 27.8% for FY-2025, which is below its 3-year CAGR of 41.93%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Danish Power Ltd?

Danish Power Ltd Return on capital employed is 40.22% for FY-2025, which is in line with its 3-year historical median of 40.22%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Danish Power Ltd?

Danish Power Ltd Return on Asset is 20.17%, which is in line with its 3-year historical median of 20.17%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Danish Power Ltd?

Danish Power Ltd Return on equity is 28.94% for FY-2025, which is in line with its 3-year historical median of 28.94%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Danish Power Ltd?

Danish Power Ltd Cash conversion cycle is 82 days, above its 3-year historical median of 63 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	1.47	1.68
ROE	28.94	28.94
ROCE	40.22	40.22
Cash Conversion Cycle	82 days	63 days

Q.6 Gross Profit margin of Danish Power Ltd?

Danish Power Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.6% for FY-2025, which is above its 3-year median of 16.2%, indicating increasing margins.

Q.7 Operating Profit Margin of Danish Power Ltd?

Danish Power Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.15% for FY-2025, which is above its 3-year median of 16.78% indicating increasing margins.

Q.8 Net Profit Margin of Danish Power Ltd?

Danish Power Ltd Net Profit Margin is 13.73% for FY-2025, is above with its 3-year median of 11.35%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	19.6	16.2
Operating Profit Margin	19.15	16.78
Net Profit Margin	13.73	11.35

Q.9 Debt to Equity ratio of Danish Power Ltd?

Danish Power Ltd Debt-to-Equity ratio is 0.01, which is lower with the industry average of 0.38, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Danish Power Ltd?

Danish Power Ltd Debt to cash flow from operations is -0.2, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Danish Power Ltd?

Promoters hold 73.62% of the Danish Power Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Danish Power Ltd vs industry peers?

Danish Power Ltd revenue CAGR is 41.93%, compared to the industry median CAGR of 27.31%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	27.8	27.3
Gross Profit Growth	53.7	37.5
Operating Profit Growth	47.3	41.2
Net Profit Growth	52.6	44.2

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	1.47	1.2
ROE	28.94	15.67
ROCE	40.22	17.74
Cash Conversion Cycle (days)	81.54	90

Valuation & price assessment

Q.1 Stock return of Danish Power Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 0.31% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	0.3%

Q.3 Valuation ratios of Danish Power Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	30.36	33.68	44.19
Price to Book	5.52	5.36	4.79
Price to Sales	4.17	4.43	3.09
EV to EBITDA	18.55	22.00	21.59

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