Check Before You Invest : Duncan Engineering Ltd

Snapshot

Q.1 Which industry/sub-sector does Duncan Engineering Ltd belong to?

Duncan Engineering Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Duncan Engineering Ltd a good quality company?

Duncan Engineering Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Duncan Engineering Ltd undervalued or overvalued?

Duncan Engineering Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Duncan Engineering Ltd a good buy now?

Duncan 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

Q.1 Revenue growth of Duncan Engineering Ltd?

Duncan Engineering Ltd revenue growth is 30.1% for FY-2025, which is above its 5-year CAGR of 14.32%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Duncan Engineering Ltd?

Duncan Engineering Ltd Return on capital employed is 13.41% for FY-2025, which is below its 5-year historical median of 18.5%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Duncan Engineering Ltd?

Duncan Engineering Ltd Return on Asset is 7.24%, which is below its 5-year historical median of 14.48%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Duncan Engineering Ltd?

Duncan Engineering Ltd Return on equity is 9.49% for FY-2025, which is below its 5-year historical median of 18.63%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Duncan Engineering Ltd?

Duncan Engineering Ltd Cash conversion cycle is 52 days, in line with its 5-year historical median of 52 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	1.18	1.19
ROE	9.49	18.63
ROCE	13.41	18.5
Cash Conversion Cycle	52 days	52 days

Q.6 Gross Profit margin of Duncan Engineering Ltd?

Duncan Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.8% for FY-2025, which is below its 5-year median of 16.8%, indicating decreasing margins.

Q.7 Operating Profit Margin of Duncan Engineering Ltd?

Duncan Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.6% for FY-2025, which is below its 5-year median of 13.63% indicating decreasing margins.

Q.8 Net Profit Margin of Duncan Engineering Ltd?

Duncan Engineering Ltd Net Profit Margin is 6.15% for FY-2025, is below with its 5-year median of 11.2%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	10.8	16.8
Operating Profit Margin	8.6	13.63
Net Profit Margin	6.15	11.2

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

Duncan Engineering Ltd Debt-to-Equity ratio is 0.02, which is lower with the industry average of 0.34, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Duncan Engineering Ltd?

Duncan Engineering Ltd Debt to cash flow from operations is 0.16, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Duncan Engineering Ltd?

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

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Duncan Engineering Ltd vs industry peers?

Duncan Engineering Ltd revenue CAGR is 14.32%, compared to the industry median CAGR of 12.01%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	30.1	12
Gross Profit Growth	-18.2	NAN
Operating Profit Growth	-22.2	NAN
Net Profit Growth	-28.6	26.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.18	0.91
ROE	9.49	12.81
ROCE	13.41	15.04
Cash Conversion Cycle (days)	51.99	107

Valuation & price assessment

Q.1 Stock return of Duncan Engineering Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 18.1% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	18.1%	27.8%	-1.4%	-9.4%

Q.3 Valuation ratios of Duncan Engineering Ltd vs historical?

The current P/E is higher 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	29.84	18.10	29.52
Price to Book	2.47	2.98	2.90
Price to Sales	1.93	2.06	2.94
EV to EBITDA	14.72	12.06	15.76

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