Check Before You Invest : DMR Engineering Ltd

Q: 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: Is DMR Engineering Ltd a good quality company?

DMR Engineering 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 DMR Engineering Ltd undervalued or overvalued?

DMR Engineering Ltd appears Somewhat 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. Price to Earnings, Current: 34.75, Historic Median: 29.53. Price to Book, Current: 2.58, Historic Median: 2.99. Price to Sales, Current: 3.24, Historic Median: 5.09. EV to EBITDA, Current: 17.24, Historic Median: 19.50

Q: 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

Q: 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 34.26%, indicating faster growth.

Q: 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: 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: Net Profit Margin of DMR Engineering Ltd?

DMR Engineering Ltd Net Profit Margin is 16.3% for FY-2025, is below its 5-year median of 19.42%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 23.1, Historic Median: 28.7. Operating Profit Margin (%), Current: 20.52, Historic Median: 28.26. Net Profit Margin (%), Current: 16.3, Historic Median: 19.42

Q: Return on Asset of DMR Engineering Ltd?

DMR Engineering Ltd Return on Asset is 14.17%, which is in line with its 5-year historical median of 14.54%, indicating stable asset utilization efficiency.

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

DMR Engineering Ltd Return on capital employed is 22.34% for FY-2025, which is in line with its 5-year historical median of 22.34%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : DMR Engineering Ltd

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 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 DMR Engineering Ltd undervalued or overvalued?

DMR Engineering Ltd appears Somewhat 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	5-year Historic Median
Price to Earnings	34.75	29.53
Price to Book	2.58	2.99
Price to Sales	3.24	5.09
EV to EBITDA	17.24	19.50

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

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 DMR Engineering Ltd?

DMR Engineering Ltd revenue growth is 49.2% for FY-2025, which is above its 5-year CAGR of 34.26%, 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 its 5-year median of 19.42%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	23.1	28.7
Operating Profit Margin (%)	20.52	28.26
Net Profit Margin (%)	16.3	19.42

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of DMR Engineering Ltd?

DMR Engineering Ltd Return on Asset is 14.17%, which is in line with its 5-year historical median of 14.54%, indicating stable asset utilization efficiency.

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

DMR Engineering Ltd Return on capital employed is 22.34% for FY-2025, which is in line with its 5-year historical median of 22.34%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 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 5-year historical median of 17.32%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of DMR Engineering Ltd?

DMR Engineering Ltd Cash conversion cycle is 97 days, below its 5-year historical median of 149 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.87	0.76
ROE (%)	17.32	17.32
ROCE (%)	22.34	22.34
Cash Conversion Cycle	97 days	149 days

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

Q.9 Debt to Equity ratio of DMR Engineering Ltd?

DMR Engineering Ltd Debt-to-Equity ratio is 0.03, which is lower the industry average of 0.06, 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

D: Promoter shareholding and pledge status of DMR Engineering Ltd?

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)

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

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	5-year Industry Median
Revenue Growth (%)	49.2	0
Gross Profit Growth (%)	4.8	13.3
Operating Profit Growth (%)	6.5	23.2
Net Profit Growth (%)	11	15.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.87	0.8
ROE (%)	17.32	18.16
ROCE (%)	22.34	21.64
Cash Conversion Cycle (days)	96.71	96

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 26.28% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	26.3%	-38.2%

Q.2 Valuation ratios of DMR Engineering Ltd vs historical?

The current P/E ratio of 34.75 is higher than its historical median of 29.53, 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	34.75	29.53	22.43
Price to Book	2.58	2.99	3.06
Price to Sales	3.24	5.09	2.97
EV to EBITDA	17.24	19.50	13.21

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Check Before You Invest : DMR Engineering Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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