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Check Before You Invest : DU Digital Global Ltd

BSE: 0 NSE: DUGLOBAL ISIN: INE0HPK01020
  |   Sector:  Miscellaneous   |   Industry:  Professional Services

Snapshot

Q.1 Which industry/sub-sector does DU Digital Global Ltd belong to?
DU Digital Global Ltd belongs to the Miscellaneous sector, operating specifically within the Professional Services segment.
Q.2 Is DU Digital Global Ltd a good quality company?
DU Digital Global Ltd is a weak quality company, based on a inconsistent 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 DU Digital Global Ltd undervalued or overvalued?
DU Digital Global Ltd appears Overvalued, as its key valuation ratios are higher 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 104.84 196.06
Price to Book 5.48 7.38
Price to Sales 11.18 25.15
EV to EBITDA 38.79 103.04
Q.4 Is DU Digital Global Ltd a good buy now?
DU Digital Global Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 DU Digital Global Ltd?
DU Digital Global Ltd revenue growth is 73.9% for FY-2025, which is above its 5-year CAGR of -0.02%, indicating faster growth.

Q.2 Gross Profit margin of DU Digital Global Ltd?
DU Digital Global Ltd Gross profit margin which is the profit after deduction of direct costs, is 25.5% for FY-2025, which is in line with its 5-year median of 25.5%, indicating stable margins.

Q.3 Operating Profit Margin of DU Digital Global Ltd?
DU Digital Global Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.65% for FY-2025, which is in line with its 5-year median of 17.65% indicating stable margins.

Q.4 Net Profit Margin of DU Digital Global Ltd?
DU Digital Global Ltd Net Profit Margin is 10.66% for FY-2025, is in line with its 5-year median of 10.66%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 25.5 25.5
Operating Profit Margin (%) 17.65 17.65
Net Profit Margin (%) 10.66 10.66

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of DU Digital Global Ltd?
DU Digital Global Ltd Return on Asset is 3.32%, which is in line with its 5-year historical median of 3.32%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of DU Digital Global Ltd?
DU Digital Global Ltd Return on capital employed is 5.88% for FY-2025, which is below its 5-year historical median of 10.49%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of DU Digital Global Ltd?
DU Digital Global Ltd Return on equity is 5.42% for FY-2025, which is in line with its 5-year historical median of 5.49%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of DU Digital Global Ltd?
DU Digital Global Ltd Cash conversion cycle is 135 days, above its 5-year historical median of -9 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.31 0.31
ROE (%) 5.42 5.49
ROCE (%) 5.88 10.49
Cash Conversion Cycle 135 days -9 days

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

Q.9 Debt to Equity ratio of DU Digital Global Ltd?
DU Digital Global Ltd Debt-to-Equity ratio is 0.03, which is lower the industry average of 0.08, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of DU Digital Global Ltd?
DU Digital Global Ltd Debt to cash flow from operations is -0.63, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of DU Digital Global Ltd?

Q.1 Promoter shareholding and pledge status of DU Digital Global Ltd?
Promoters hold 54.03% of the DU Digital Global Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does DU Digital Global Ltd performance compare with that of its Peers?

Q.1 Revenue growth of DU Digital Global Ltd vs industry peers?
DU Digital Global Ltd revenue CAGR is -0.02%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 73.9 -
Gross Profit Growth (%) 75 14.9
Operating Profit Growth (%) 150 9.3
Net Profit Growth (%) 50 16.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.31 1.38
ROE (%) 5.42 12.58
ROCE (%) 5.88 12.8
Cash Conversion Cycle (days) 134.77 54

Valuation & price assessment

Q.1 Stock return of DU Digital Global Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -39.76% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - -39.8% -13%
Q.2 Valuation ratios of DU Digital Global Ltd vs historical?
The current P/E ratio of 104.84 is lower than its historical median of 196.06, 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 104.84 196.06 26.54
Price to Book 5.48 7.38 2.42
Price to Sales 11.18 25.15 1.70
EV to EBITDA 38.79 103.04 15.30

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