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Check Before You Invest : Deccan Gold Mines Ltd

BSE: 512068 NSE: DECNGOLD ISIN: INE945F01025
  |   Sector:  Metals & Mining   |   Industry:  Mining & Minerals

Snapshot

Q.1 Which industry/sub-sector does Deccan Gold Mines Ltd belong to?
Deccan Gold Mines Ltd belongs to the Metals & Mining sector, operating specifically within the Mining & Minerals segment.
Q.2 Is Deccan Gold Mines Ltd a good quality company?
Deccan Gold Mines Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Deccan Gold Mines Ltd undervalued or overvalued?
Deccan Gold Mines Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings - -
Price to Book 4.73 6.47
Price to Sales 557.81 -
EV to EBITDA 627.98 -167.82
Q.4 Is Deccan Gold Mines Ltd a good buy now?
Deccan Gold Mines 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

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Deccan Gold Mines Ltd?
Deccan Gold Mines Ltd Gross profit margin which is the profit after deduction of direct costs, is -8752.8% for FY-2025, which is below its 3-year median of -847.9%, indicating decreasing margins.

Q.2 Operating Profit Margin of Deccan Gold Mines Ltd?
Deccan Gold Mines Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -7687.07% for FY-2025, which is below its 3-year median of -675.26% indicating decreasing margins.

Q.3 Net Profit Margin of Deccan Gold Mines Ltd?
Deccan Gold Mines Ltd Net Profit Margin is -8839.16% for FY-2025, is below its 3-year median of -871.82%, indicating decreasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) -8752.8 -847.9
Operating Profit Margin (%) -7687.07 -675.26
Net Profit Margin (%) -8839.16 -871.82

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Deccan Gold Mines Ltd?
Deccan Gold Mines Ltd Return on Asset is -12.93%, which is below its 3-year historical median of -4.04%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Deccan Gold Mines Ltd?
Deccan Gold Mines Ltd Return on capital employed is -10.45% for FY-2025, which is below its 3-year historical median of -2.36%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Return on Equity (ROE) of Deccan Gold Mines Ltd?
Deccan Gold Mines Ltd Return on equity is -18.15% for FY-2025, which is below its 3-year historical median of -4.87%, indicating the business is making worse use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of Deccan Gold Mines Ltd?
Deccan Gold Mines Ltd Debt-to-Equity ratio is 0.38, which is above the industry average of 0.12, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Deccan Gold Mines Ltd?
Deccan Gold Mines Ltd Debt to cash flow from operations is -8.14, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Deccan Gold Mines Ltd?

Q.1 Promoter shareholding and pledge status of Deccan Gold Mines Ltd?
Promoters hold 20.62% of the Deccan Gold Mines Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Deccan Gold Mines Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Deccan Gold Mines Ltd vs industry peers?
Deccan Gold Mines Ltd revenue CAGR is -10.12%, compared to the industry median CAGR of -7.89%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - -7.9
Gross Profit Growth (%) 0 2.6
Operating Profit Growth (%) 0 -2.2
Net Profit Growth (%) 0 -6.3
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) - 0.39
ROE (%) -18.15 5.68
ROCE (%) -10.45 8.45
Cash Conversion Cycle (days) 186.58 144

Valuation & price assessment

Q.1 Stock return of Deccan Gold Mines Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
14.6% 38.5% 49.8% 2.8%
Q.2 Valuation ratios of Deccan Gold Mines Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 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 - - 20.43
Price to Book 4.73 6.47 2.10
Price to Sales 557.81 - 6.61
EV to EBITDA 627.98 -167.82 7.58

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