Check Before You Invest : Deccan Gold Mines Ltd

Snapshot

Q.1 Which industry/sub-sector does Deccan Gold Mines Ltd belong to?

Deccan Gold Mines Ltd belongs to the Metals & Mining sector, operating specifically within the Mining & Minerals segment.

Q.2 Is Deccan Gold Mines Ltd a good quality company?

Deccan Gold Mines Ltd is a weak quality company, based on a inconsistent 3-year financial track record.

Q.3 Is Deccan Gold Mines Ltd undervalued or overvalued?

Deccan Gold Mines Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Deccan Gold Mines Ltd a good buy now?

Deccan Gold Mines 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 Return on capital employed (ROCE) of Deccan Gold Mines Ltd?

Deccan Gold Mines Ltd Return on capital employed is -10.45% for FY-2025, which is below its 3-year historical median of -2.36%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.2 Return on Asset of Deccan Gold Mines Ltd?

Deccan Gold Mines Ltd Return on Asset is -12.93%, which is below its 3-year historical median of -4.04%, indicating deteriorated asset utilization efficiency.

Q.3 Return on Equity (ROE) of Deccan Gold Mines Ltd?

Deccan Gold Mines Ltd Return on equity is -18.15% for FY-2025, which is below its 3-year historical median of -4.87%, indicating the business is making worse use of its shareholders capital.

Q.4 Gross Profit margin of Deccan Gold Mines Ltd?

Deccan Gold Mines Ltd Gross profit margin which is the profit after deduction of direct costs, is -8752.8% for FY-2025, which is below its 3-year median of -847.9%, indicating decreasing margins.

Q.5 Operating Profit Margin of Deccan Gold Mines Ltd?

Deccan Gold Mines Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -7687.07% for FY-2025, which is below its 3-year median of -675.26% indicating decreasing margins.

Q.6 Net Profit Margin of Deccan Gold Mines Ltd?

Deccan Gold Mines Ltd Net Profit Margin is -8839.16% for FY-2025, is below with its 3-year median of -871.82%, indicating decreasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	-8752.8	-847.9
Operating Profit Margin	-7687.07	-675.26
Net Profit Margin	-8839.16	-871.82

Q.7 Debt to Equity ratio of Deccan Gold Mines Ltd?

Deccan Gold Mines Ltd Debt-to-Equity ratio is 0.38, which is above with the industry average of 0.15, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Deccan Gold Mines Ltd?

Deccan Gold Mines Ltd Debt to cash flow from operations is -8.14, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Deccan Gold Mines Ltd?

Promoters hold 20.62% of the Deccan Gold Mines Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Deccan Gold Mines Ltd vs industry peers?

Deccan Gold Mines Ltd revenue CAGR is -10.12%, compared to the industry median CAGR of -7.89%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	-	-7.9
Gross Profit Growth	0	-5.6
Operating Profit Growth	0	-3.8
Net Profit Growth	0	-13

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	-	0.4
ROE	-18.15	9.95
ROCE	-10.45	8.45
Cash Conversion Cycle (days)	186.58	144

Valuation & price assessment

Q.1 Stock return of Deccan Gold Mines Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 13.5% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	13.5%	41.9%	42.1%	6.2%

Q.3 Valuation ratios of Deccan Gold Mines Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	-	-58.58	20.35
Price to Book	4.11	6.47	2.10
Price to Sales	507.48	1926.70	6.56
EV to EBITDA	-154.1	-171.13	7.58

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