Check Before You Invest : D.P. Abhushan Ltd

Snapshot

Q.1 Which industry/sub-sector does D.P. Abhushan Ltd belong to?

D.P. Abhushan Ltd belongs to the Consumer Durables sector, operating specifically within the Diamond & Jewellery segment.

Q.2 Is D.P. Abhushan Ltd a good quality company?

D.P. Abhushan Ltd is a average quality company, based on a somewhat consistent 8-year financial track record.

Q.3 Is D.P. Abhushan Ltd undervalued or overvalued?

D.P. Abhushan Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is D.P. Abhushan Ltd a good buy now?

D.P. Abhushan 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 D.P. Abhushan Ltd?

D.P. Abhushan Ltd revenue growth is 41.5% for FY-2025, which is above its 5-year CAGR of 32.57%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of D.P. Abhushan Ltd?

D.P. Abhushan Ltd Return on capital employed is 34.36% for FY-2025, which is above its 5-year historical median of 25.29%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of D.P. Abhushan Ltd?

D.P. Abhushan Ltd Return on Asset is 15.75%, which is above its 5-year historical median of 10.81%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of D.P. Abhushan Ltd?

D.P. Abhushan Ltd Return on equity is 35.33% for FY-2025, which is above its 5-year historical median of 32.91%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of D.P. Abhushan Ltd?

D.P. Abhushan Ltd Cash conversion cycle is 52 days, in line with its 5-year historical median of 53 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	4.63	4.63
ROE	35.33	32.91
ROCE	34.36	25.29
Cash Conversion Cycle	52 days	53 days

Q.6 Gross Profit margin of D.P. Abhushan Ltd?

D.P. Abhushan Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.8% for FY-2025, which is above its 5-year median of 3.5%, indicating increasing margins.

Q.7 Operating Profit Margin of D.P. Abhushan Ltd?

D.P. Abhushan Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.25% for FY-2025, which is above its 5-year median of 4.22% indicating increasing margins.

Q.8 Net Profit Margin of D.P. Abhushan Ltd?

D.P. Abhushan Ltd Net Profit Margin is 3.4% for FY-2025, is above with its 5-year median of 2.34%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.8	3.5
Operating Profit Margin	5.25	4.22
Net Profit Margin	3.4	2.34

Q.9 Debt to Equity ratio of D.P. Abhushan Ltd?

D.P. Abhushan Ltd Debt-to-Equity ratio is 0.41, which is lower with the industry average of 0.58, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of D.P. Abhushan Ltd?

D.P. Abhushan Ltd Debt to cash flow from operations is -8.72, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of D.P. Abhushan Ltd?

Promoters hold 74.89% of the D.P. Abhushan Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of D.P. Abhushan Ltd vs industry peers?

D.P. Abhushan Ltd revenue CAGR is 32.57%, compared to the industry median CAGR of 11.19%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	41.5	11.2
Gross Profit Growth	79.8	14.9
Operating Profit Growth	72.3	17.5
Net Profit Growth	82.3	13.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	4.63	1.44
ROE	35.33	7.96
ROCE	34.36	8.31
Cash Conversion Cycle (days)	51.6	132

Valuation & price assessment

Q.1 Stock return of D.P. Abhushan Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 55.84% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	55.8%	48.5%	-25.8%

Q.3 Valuation ratios of D.P. Abhushan 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	12.71	24.04	27.79
Price to Book	4.08	6.80	1.96
Price to Sales	0.69	0.71	1.27
EV to EBITDA	9.17	15.94	16.05

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