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Check Before You Invest : DHP India Ltd

BSE: 531306 NSE: ISIN: INE590D01016
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does DHP India Ltd belong to?
DHP India Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is DHP India Ltd a good quality company?
DHP India Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is DHP India Ltd undervalued or overvalued?
DHP India Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is DHP India Ltd a good buy now?
DHP India 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 DHP India Ltd?
DHP India Ltd revenue growth is 8.6% for FY-2025 , which is above its 5 year CAGR of 0.8% , indicating faster growth.
Q.2 Gross Profit margin of DHP India Ltd?
DHP India Ltd Gross profit margin which is the profit after deduction of direct costs, is 140.2% for FY-2025 , which is above its 5 year median of 39.8% , indicating increasing margins.
Q.3 Operating Profit Margin of DHP India Ltd?
DHP India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.05% for FY-2025 , which is below its 5 year median of 29.4% indicating decreasing margins.
Q.4 Net Profit Margin of DHP India Ltd?
DHP India Ltd Net Profit Margin is 115.16% for FY-2025 , is above with its 5 year median of 32.93%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 140.2 39.8
Operating Profit Margin 15.05 29.4
Net Profit Margin 115.16 32.93
Q.5 Return on Asset of DHP India Ltd?
DHP India Ltd Return on Asset is 26.76%, which is above its 5 year historical median of 23.06%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of DHP India Ltd?
DHP India Ltd Return on equity is 29.25% for FY-2025 , which is above its historical median of 26.01%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of DHP India Ltd?
DHP India Ltd Return on capital employed is 34.13% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of DHP India Ltd?
DHP India Ltd Cash conversion cycle is 173 days, above its historical median of 118 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.24 0.61
ROE 29.25 26.01
ROCE 34.13 31.63
Cash Conversion Cycle 173 days 118 days
Q.9 Debt to Equity ratio of DHP India Ltd?
DHP India Ltd Debt-to-Equity ratio is 0.02 , which is lower with the industry average of 0.17 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of DHP India Ltd?
DHP India Ltd Debt to cash flow from operations is -2.6 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of DHP India Ltd?
Promoters hold 73.37% of the DHP India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of DHP India Ltd vs industry peers?
DHP India Ltd revenue CAGR is 0.79% , compared to the industry median CAGR of 1.47% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 57.8 101.1
Gross Profit 81.3 9.6
Operating Profit 9 9
Net Profit 67 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.24 0.89
ROE 29.25 11.68
ROCE 34.13 14.29
Cash Conversion Cycle (days) 173.09 101

Valuation & price assessment

Q.1 Stock return of DHP India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 19.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 19.2% 8.6% -17.1% -1.1%
Q.3 Valuation ratios of DHP India Ltd vs historical?
The current P/E is lower 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 2.26 13.12 46.24
Price to Book 0.66 1.42 2.79
Price to Sales 2.85 2.54 2.66
EV to EBITDA 1.9 7.02 15.72

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