SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Dee Development Engineers Ltd

BSE: 544198 NSE: DEEDEV ISIN: INE841L01016
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Dee Development Engineers Ltd belong to?
Dee Development Engineers Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Dee Development Engineers Ltd a good quality company?
Dee Development Engineers 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 Dee Development Engineers Ltd undervalued or overvalued?
Dee Development Engineers Ltd appears Overvalued, as its key valuation ratios are higher 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 5-year
Historic Median
Price to Earnings 49.77 59.23
Price to Book 3.77 2.01
Price to Sales 3.81 2.57
EV to EBITDA 21.38 19.47
Q.4 Is Dee Development Engineers Ltd a good buy now?
Dee Development Engineers 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

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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Dee Development Engineers Ltd?
Dee Development Engineers Ltd revenue growth is -0.9% for FY-2025, which is below its 5-year CAGR of 0.61%, indicating slower growth.

Q.2 Gross Profit margin of Dee Development Engineers Ltd?
Dee Development Engineers Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.4% for FY-2025, which is in line with its 5-year median of 10.2%, indicating stable margins.

Q.3 Operating Profit Margin of Dee Development Engineers Ltd?
Dee Development Engineers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.12% for FY-2025, which is above its 5-year median of 11.85% indicating increasing margins.

Q.4 Net Profit Margin of Dee Development Engineers Ltd?
Dee Development Engineers Ltd Net Profit Margin is 3.66% for FY-2025, is in line with its 5-year median of 3.66%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.4 10.2
Operating Profit Margin (%) 14.12 11.85
Net Profit Margin (%) 3.66 3.66

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Dee Development Engineers Ltd?
Dee Development Engineers Ltd Return on Asset is 1.75%, which is below its 5-year historical median of 1.93%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Dee Development Engineers Ltd?
Dee Development Engineers Ltd Return on capital employed is 7.08% for FY-2025, which is in line with its 5-year historical median of 7.08%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Dee Development Engineers Ltd?
Dee Development Engineers Ltd Return on equity is 3.56% for FY-2025, which is below its 5-year historical median of 3.99%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Dee Development Engineers Ltd?
Dee Development Engineers Ltd Cash conversion cycle is 265 days, in line with its 5-year historical median of 265 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.48 0.52
ROE (%) 3.56 3.99
ROCE (%) 7.08 7.08
Cash Conversion Cycle 265 days 265 days

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

Q.9 Debt to Equity ratio of Dee Development Engineers Ltd?
Dee Development Engineers Ltd Debt-to-Equity ratio is 0.43, which is above the industry average of 0.18, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Dee Development Engineers Ltd?
Dee Development Engineers Ltd Debt to cash flow from operations is -3.63, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Dee Development Engineers Ltd?

Q.1 Promoter shareholding and pledge status of Dee Development Engineers Ltd?
Promoters hold 70.18% of the Dee Development Engineers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Dee Development Engineers Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Dee Development Engineers Ltd vs industry peers?
Dee Development Engineers Ltd revenue CAGR is 0.61%, compared to the industry median CAGR of 3.04%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -0.9 3
Gross Profit Growth (%) 15.8 23
Operating Profit Growth (%) 18.4 21.7
Net Profit Growth (%) 15 26.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.48 0.89
ROE (%) 3.56 11.8
ROCE (%) 7.08 14.41
Cash Conversion Cycle (days) 265.08 99

Valuation & price assessment

Q.1 Stock return of Dee Development Engineers Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 120.94% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 120.9%
Q.2 Valuation ratios of Dee Development Engineers Ltd vs historical?
The current P/E ratio of 49.77 is lower than its historical median of 59.23, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 49.77 59.23 29.36
Price to Book 3.77 2.01 2.91
Price to Sales 3.81 2.57 2.93
EV to EBITDA 21.38 19.47 15.77

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×