Check Before You Invest : Divyashakti Ltd

Q: Which industry/sub-sector does Divyashakti Ltd belong to?

Divyashakti Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Ceramics/Marble/Granite/Sanitaryware segment.

Q: Is Divyashakti Ltd a good quality company?

Divyashakti Ltd is a quality company, based on a 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: Is Divyashakti Ltd undervalued or overvalued?

Divyashakti Ltd appears Fair, as its key valuation ratios are in line with 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. Price to Earnings, Current: 37.4, Historic Median: 20.99. Price to Book, Current: 0.43, Historic Median: 0.60. Price to Sales, Current: 1.22, Historic Median: 1.12. EV to EBITDA, Current: 12.19, Historic Median: 8.76

Q: Is Divyashakti Ltd a good buy now?

Divyashakti 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

Q: Revenue growth of Divyashakti Ltd?

Divyashakti Ltd revenue growth is -8.5% for FY-2025, which is below its 5-year CAGR of 1.21%, indicating slower growth.

Q: Gross Profit margin of Divyashakti Ltd?

Divyashakti Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.1% for FY-2025, which is below its 5-year median of 17.9%, indicating decreasing margins.

Q: Operating Profit Margin of Divyashakti Ltd?

Divyashakti Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.35% for FY-2025, which is below its 5-year median of 7.45% indicating decreasing margins.

Q: Net Profit Margin of Divyashakti Ltd?

Divyashakti Ltd Net Profit Margin is 3.97% for FY-2025, is below its 5-year median of 10.36%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 9.1, Historic Median: 17.9. Operating Profit Margin (%), Current: 2.35, Historic Median: 7.45. Net Profit Margin (%), Current: 3.97, Historic Median: 10.36

Q: Return on Asset of Divyashakti Ltd?

Divyashakti Ltd Return on Asset is 1.39%, which is below its 5-year historical median of 4.93%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Divyashakti Ltd?

Divyashakti Ltd Return on capital employed is 2.81% for FY-2025, which is below its 5-year historical median of 7.77%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Divyashakti Ltd

Snapshot

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

Divyashakti Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Ceramics/Marble/Granite/Sanitaryware segment.

Q.2 Is Divyashakti Ltd a good quality company?

Divyashakti Ltd is a quality company, based on a 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 Divyashakti Ltd undervalued or overvalued?

Divyashakti Ltd appears Fair, as its key valuation ratios are in line with 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	37.4	20.99
Price to Book	0.43	0.60
Price to Sales	1.22	1.12
EV to EBITDA	12.19	8.76

Q.4 Is Divyashakti Ltd a good buy now?

Divyashakti 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.

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

Q.1 Revenue growth of Divyashakti Ltd?

Divyashakti Ltd revenue growth is -8.5% for FY-2025, which is below its 5-year CAGR of 1.21%, indicating slower growth.

Q.2 Gross Profit margin of Divyashakti Ltd?

Divyashakti Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.1% for FY-2025, which is below its 5-year median of 17.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of Divyashakti Ltd?

Divyashakti Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.35% for FY-2025, which is below its 5-year median of 7.45% indicating decreasing margins.

Q.4 Net Profit Margin of Divyashakti Ltd?

Divyashakti Ltd Net Profit Margin is 3.97% for FY-2025, is below its 5-year median of 10.36%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	9.1	17.9
Operating Profit Margin (%)	2.35	7.45
Net Profit Margin (%)	3.97	10.36

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Divyashakti Ltd?

Divyashakti Ltd Return on Asset is 1.39%, which is below its 5-year historical median of 4.93%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Divyashakti Ltd?

Divyashakti Ltd Return on capital employed is 2.81% for FY-2025, which is below its 5-year historical median of 7.77%. 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 Divyashakti Ltd?

Divyashakti Ltd Return on equity is 2.05% for FY-2025, which is below its 5-year historical median of 5.75%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Divyashakti Ltd?

Divyashakti Ltd Cash conversion cycle is 564 days, above its 5-year historical median of 413 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.35	0.49
ROE (%)	2.05	5.75
ROCE (%)	2.81	7.77
Cash Conversion Cycle	564 days	413 days

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

Q.9 Debt to Equity ratio of Divyashakti Ltd?

Divyashakti Ltd Debt-to-Equity ratio is 0.02, which is lower the industry average of 0.32, indicating lower debt levels in the industry.

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

Divyashakti Ltd Debt to cash flow from operations is -0.53, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Divyashakti Ltd?

Q.1 Promoter shareholding and pledge status of Divyashakti Ltd?

Promoters hold 74.95% of the Divyashakti Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Divyashakti Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Divyashakti Ltd vs industry peers?

Divyashakti Ltd revenue CAGR is 1.21%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-8.5	0
Gross Profit Growth (%)	2.7	9
Operating Profit Growth (%)	-49.3	1.1
Net Profit Growth (%)	9.5	15.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.35	0.55
ROE (%)	2.05	2.33
ROCE (%)	2.81	5.52
Cash Conversion Cycle (days)	564.13	187

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of -3.8% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-3.8%	1.4%	-13.4%	-13.4%

Q.2 Valuation ratios of Divyashakti Ltd vs historical?

The current P/E ratio of 37.4 is higher than its historical median of 20.99, indicating that the stock is trading above 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	37.4	20.99	24.16
Price to Book	0.43	0.60	0.90
Price to Sales	1.22	1.12	1.28
EV to EBITDA	12.19	8.76	10.79

Check more companies

1. Kajaria Ceramics

2. Cera Sanitaryware

3. Midwest Gold

4. Midwest

5. Pokarna

6. Nitco

7. Somany Ceramics

8. Asian Granito India

9. Orient Bell

10. Exxaro Tiles

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4. SBI Life Insurance Company Ltd.

5. Canara Bank

Check Before You Invest : Divyashakti Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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