Check Before You Invest : Donear Industries Ltd

Snapshot

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

Donear Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Donear Industries Ltd a good quality company?

Donear Industries Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Donear Industries Ltd undervalued or overvalued?

Donear Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Donear Industries Ltd a good buy now?

Donear Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Donear Industries Ltd?

Donear Industries Ltd revenue growth is 14.3% for FY-2025, which is above its 5-year CAGR of 10.77%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Donear Industries Ltd?

Donear Industries Ltd Return on capital employed is 13.51% for FY-2025, which is in line with its 5-year historical median of 13.51%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Donear Industries Ltd?

Donear Industries Ltd Return on Asset is 4.28%, which is in line with its 5-year historical median of 4.3%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Donear Industries Ltd?

Donear Industries Ltd Return on equity is 14.52% for FY-2025, which is below its 5-year historical median of 18.15%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Donear Industries Ltd?

Donear Industries Ltd Cash conversion cycle is 180 days, in line with its 5-year historical median of 188 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	1.23	1.18
ROE	14.52	18.15
ROCE	13.51	13.51
Cash Conversion Cycle	180 days	188 days

Q.6 Gross Profit margin of Donear Industries Ltd?

Donear Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.3% for FY-2025, which is below its 5-year median of 7%, indicating decreasing margins.

Q.7 Operating Profit Margin of Donear Industries Ltd?

Donear Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.28% for FY-2025, which is in line with its 5-year median of 9.28% indicating stable margins.

Q.8 Net Profit Margin of Donear Industries Ltd?

Donear Industries Ltd Net Profit Margin is 3.49% for FY-2025, is below with its 5-year median of 4%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.3	7
Operating Profit Margin	9.28	9.28
Net Profit Margin	3.49	4

Q.9 Debt to Equity ratio of Donear Industries Ltd?

Donear Industries Ltd Debt-to-Equity ratio is 1.66, which is above with the industry average of 0.5, indicating higher debt levels in the industry.

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

Donear Industries Ltd Debt to cash flow from operations is -722.05, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Donear Industries Ltd?

Promoters hold 74.56% of the Donear Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Donear Industries Ltd vs industry peers?

Donear Industries Ltd revenue CAGR is 10.77%, compared to the industry median CAGR of 4.23%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	14.3	4.2
Gross Profit Growth	-3.3	8.6
Operating Profit Growth	2.4	7.3
Net Profit Growth	-8.6	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.23	0.98
ROE	14.52	6.1
ROCE	13.51	7.6
Cash Conversion Cycle (days)	180.34	109

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 13.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	13.9%	24%	-3.1%	-13.1%

Q.3 Valuation ratios of Donear Industries Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	14.36	15.30	19.97
Price to Book	1.9	2.71	1.32
Price to Sales	0.52	0.62	1.06
EV to EBITDA	8.82	10.06	9.32

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