SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : D.P. Abhushan Ltd

BSE: 544161 NSE: DPABHUSHAN ISIN: INE266Y01019
  |   Sector:  Consumer Durables   |   Industry:  Diamond & Jewellery

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 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 D.P. Abhushan Ltd undervalued or overvalued?
D.P. Abhushan 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 10.06 23.80
Price to Book 3.67 6.76
Price to Sales 0.52 0.70
EV to EBITDA 7.72 15.77
Q.4 Is D.P. Abhushan Ltd a good buy now?
D.P. Abhushan 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 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 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.3 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.4 Net Profit Margin of D.P. Abhushan Ltd?
D.P. Abhushan Ltd Net Profit Margin is 3.4% for FY-2025, is above 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x) 4.63 4.63
ROE (%) 35.33 32.91
ROCE (%) 34.36 25.29
Cash Conversion Cycle 52 days 53 days

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

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 the industry average of 0.57, 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

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

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)

E: How does D.P. Abhushan Ltd performance compare with that of its Peers?

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 3.81%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 41.5 3.8
Gross Profit Growth (%) 79.8 14.9
Operating Profit Growth (%) 72.3 16.2
Net Profit Growth (%) 82.3 13.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 4.63 1.29
ROE (%) 35.33 6.86
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 49.07% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 49.1% 46.1% -35.5%
Q.2 Valuation ratios of D.P. Abhushan Ltd vs historical?
The current P/E ratio of 10.06 is lower than its historical median of 23.80, indicating that the stock is trading below 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 10.06 23.80 25.97
Price to Book 3.67 6.76 1.96
Price to Sales 0.52 0.70 1.27
EV to EBITDA 7.72 15.77 16.02

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×