Check Before You Invest : Veljan Denison Ltd

Q: Which industry/sub-sector does Veljan Denison Ltd belong to?

Veljan Denison Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Compressors / Pumps segment.

Q: Is Veljan Denison Ltd a good quality company?

Veljan Denison Ltd is a good quality company, based on a consistently good 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: Is Veljan Denison Ltd undervalued or overvalued?

Veljan Denison Ltd appears Fair, as its key valuation ratios are in line with 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. Price to Earnings, Current: 18.61, Historic Median: 22.34. Price to Book, Current: 1.92, Historic Median: 1.97. Price to Sales, Current: 3.11, Historic Median: 3.28. EV to EBITDA, Current: 10.54, Historic Median: 11.98

Q: Is Veljan Denison Ltd a good buy now?

Veljan Denison 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

Q: Revenue growth of Veljan Denison Ltd?

Veljan Denison Ltd revenue growth is 14% for FY-2025, which is above its 5-year CAGR of 11.33%, indicating faster growth.

Q: Gross Profit margin of Veljan Denison Ltd?

Veljan Denison Ltd Gross profit margin which is the profit after deduction of direct costs, is 25.3% for FY-2025, which is in line with its 5-year median of 25.3%, indicating stable margins.

Q: Operating Profit Margin of Veljan Denison Ltd?

Veljan Denison Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.63% for FY-2025, which is in line with its 5-year median of 23.63% indicating stable margins.

Q: Net Profit Margin of Veljan Denison Ltd?

Veljan Denison Ltd Net Profit Margin is 15.87% for FY-2025, is in line with its 5-year median of 15.87%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 25.3, Historic Median: 25.3. Operating Profit Margin (%), Current: 23.63, Historic Median: 23.63. Net Profit Margin (%), Current: 15.87, Historic Median: 15.87

Q: Return on Asset of Veljan Denison Ltd?

Veljan Denison Ltd Return on Asset is 9.21%, which is above its 5-year historical median of 8.66%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Veljan Denison Ltd?

Veljan Denison Ltd Return on capital employed is 14.33% for FY-2025, which is above its 5-year historical median of 13.6%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Veljan Denison Ltd

Snapshot

Q.1 Which industry/sub-sector does Veljan Denison Ltd belong to?

Veljan Denison Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Compressors / Pumps segment.

Q.2 Is Veljan Denison Ltd a good quality company?

Veljan Denison Ltd is a good quality company, based on a consistently good 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 Veljan Denison Ltd undervalued or overvalued?

Veljan Denison Ltd appears Fair, as its key valuation ratios are in line with 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	18.61	22.34
Price to Book	1.92	1.97
Price to Sales	3.11	3.28
EV to EBITDA	10.54	11.98

Q.4 Is Veljan Denison Ltd a good buy now?

Veljan Denison 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 Veljan Denison Ltd?

Veljan Denison Ltd revenue growth is 14% for FY-2025, which is above its 5-year CAGR of 11.33%, indicating faster growth.

Q.2 Gross Profit margin of Veljan Denison Ltd?

Veljan Denison Ltd Gross profit margin which is the profit after deduction of direct costs, is 25.3% for FY-2025, which is in line with its 5-year median of 25.3%, indicating stable margins.

Q.3 Operating Profit Margin of Veljan Denison Ltd?

Veljan Denison Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.63% for FY-2025, which is in line with its 5-year median of 23.63% indicating stable margins.

Q.4 Net Profit Margin of Veljan Denison Ltd?

Veljan Denison Ltd Net Profit Margin is 15.87% for FY-2025, is in line with its 5-year median of 15.87%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	25.3	25.3
Operating Profit Margin (%)	23.63	23.63
Net Profit Margin (%)	15.87	15.87

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Veljan Denison Ltd?

Veljan Denison Ltd Return on Asset is 9.21%, which is above its 5-year historical median of 8.66%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Veljan Denison Ltd?

Veljan Denison Ltd Return on capital employed is 14.33% for FY-2025, which is above its 5-year historical median of 13.6%. 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 Veljan Denison Ltd?

Veljan Denison Ltd Return on equity is 10.7% for FY-2025, which is in line with its 5-year historical median of 10.29%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Veljan Denison Ltd?

Veljan Denison Ltd Cash conversion cycle is 212 days, in line with its 5-year historical median of 217 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)	0.58	0.53
ROE (%)	10.7	10.29
ROCE (%)	14.33	13.6
Cash Conversion Cycle	212 days	217 days

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

Q.9 Debt to Equity ratio of Veljan Denison Ltd?

Veljan Denison Ltd Debt-to-Equity ratio is 0.04, which is lower the industry average of 0.07, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Veljan Denison Ltd?

Veljan Denison Ltd Debt to cash flow from operations is 0.5, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Veljan Denison Ltd?

Q.1 Promoter shareholding and pledge status of Veljan Denison Ltd?

Promoters hold 74.98% of the Veljan Denison Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Veljan Denison Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Veljan Denison Ltd vs industry peers?

Veljan Denison Ltd revenue CAGR is 11.33%, compared to the industry median CAGR of 14.24%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	14	14.2
Gross Profit Growth (%)	12.5	18.9
Operating Profit Growth (%)	10	20.5
Net Profit Growth (%)	10	20.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.58	1
ROE (%)	10.7	15
ROCE (%)	14.33	19.99
Cash Conversion Cycle (days)	211.63	92

Valuation & price assessment

Q.1 Stock return of Veljan Denison Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 12.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	12.3%	18.7%	14.1%	-10.3%

Q.2 Valuation ratios of Veljan Denison Ltd vs historical?

The current P/E ratio of 18.61 is lower than its historical median of 22.34, 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	18.61	22.34	37.40
Price to Book	1.92	1.97	5.31
Price to Sales	3.11	3.28	3.28
EV to EBITDA	10.54	11.98	22.66

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Check Before You Invest : Veljan Denison Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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