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Check Before You Invest : DMR Engineering Ltd

BSE: 543410 NSE: ISIN: INE07L501010
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering Consultancy

Snapshot

Q.1 Which industry/sub-sector does DMR Engineering Ltd belong to?
DMR Engineering Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering Consultancy segment.
Q.2 Is DMR Engineering Ltd a good quality company?
DMR Engineering Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is DMR Engineering Ltd undervalued or overvalued?
DMR Engineering Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is DMR Engineering Ltd a good buy now?
DMR Engineering 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 DMR Engineering Ltd?
DMR Engineering Ltd revenue growth is 49.2% for FY-2025 , which is above its 5 year CAGR of 34.3% , indicating faster growth.
Q.2 Gross Profit margin of DMR Engineering Ltd?
DMR Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.1% for FY-2025 , which is below its 5 year median of 28.7% , indicating decreasing margins.
Q.3 Operating Profit Margin of DMR Engineering Ltd?
DMR Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.52% for FY-2025 , which is below its 5 year median of 28.26% indicating decreasing margins.
Q.4 Net Profit Margin of DMR Engineering Ltd?
DMR Engineering Ltd Net Profit Margin is 16.3% for FY-2025 , is below with its 5 year median of 19.42%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 23.1 28.7
Operating Profit Margin 20.52 28.26
Net Profit Margin 16.3 19.42
Q.5 Return on Asset of DMR Engineering Ltd?
DMR Engineering Ltd Return on Asset is 14.17%, which is below its 5 year historical median of 14.54%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of DMR Engineering Ltd?
DMR Engineering Ltd Return on equity is 17.32% for FY-2025 , which is in line with its historical median of 17.32%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of DMR Engineering Ltd?
DMR Engineering Ltd Return on capital employed is 22.34% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of DMR Engineering Ltd?
DMR Engineering Ltd Cash conversion cycle is 97 days, below its historical median of 149 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.87 0.76
ROE 17.32 17.32
ROCE 22.34 22.34
Cash Conversion Cycle 97 days 149 days
Q.9 Debt to Equity ratio of DMR Engineering Ltd?
DMR Engineering Ltd Debt-to-Equity ratio is 0.03 , which is lower with the industry average of 0.12 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of DMR Engineering Ltd?
DMR Engineering Ltd Debt to cash flow from operations is -3.78 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of DMR Engineering Ltd?
Promoters hold 69.32% of the DMR Engineering Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of DMR Engineering Ltd vs industry peers?
DMR Engineering Ltd revenue CAGR is 34.26% , compared to the industry median CAGR of 0.00% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 10.5 52.7
Gross Profit 2.4 6.5
Operating Profit 2.1 6.8
Net Profit 1.7 5.1
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.87 0.8
ROE 17.32 18.75
ROCE 22.34 23.42
Cash Conversion Cycle (days) 96.71 100

Valuation & price assessment

Q.1 Stock return of DMR Engineering Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 34.53% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - 34.5% -27.7%
Q.3 Valuation ratios of DMR Engineering 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 23.14 29.53 25.00
Price to Book 2.15 3.06 2.82
Price to Sales 3.77 5.13 3.08
EV to EBITDA 15.63 19.74 13.40

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