SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : De Nora India Ltd

BSE: 590031 NSE: DENORA ISIN: INE244A01016
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electrodes & Welding Equipment

Snapshot

Q.1 Which industry/sub-sector does De Nora India Ltd belong to?
De Nora India Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electrodes & Welding Equipment segment.
Q.2 Is De Nora India Ltd a good quality company?
De Nora India 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 De Nora India Ltd undervalued or overvalued?
De Nora India 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 44.48 36.84
Price to Book 3.11 4.57
Price to Sales 3.31 5.74
EV to EBITDA 27.24 24.18
Q.4 Is De Nora India Ltd a good buy now?
De Nora India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 De Nora India Ltd?
De Nora India Ltd revenue growth is -7.1% for FY-2025, which is below its 5-year CAGR of 7.29%, indicating slower growth.

Q.2 Gross Profit margin of De Nora India Ltd?
De Nora India Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.5% for FY-2025, which is below its 5-year median of 31.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of De Nora India Ltd?
De Nora India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -1.64% for FY-2025, which is below its 5-year median of 29.07% indicating decreasing margins.

Q.4 Net Profit Margin of De Nora India Ltd?
De Nora India Ltd Net Profit Margin is 2.47% for FY-2025, is below its 5-year median of 20.83%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 6.5 31.9
Operating Profit Margin (%) -1.64 29.07
Net Profit Margin (%) 2.47 20.83

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of De Nora India Ltd?
De Nora India Ltd Return on Asset is 1.28%, which is below its 5-year historical median of 15.13%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of De Nora India Ltd?
De Nora India Ltd Return on capital employed is 2.42% for FY-2025, which is below its 5-year historical median of 22.95%. 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 De Nora India Ltd?
De Nora India Ltd Return on equity is 1.41% for FY-2025, which is below its 5-year historical median of 17.17%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of De Nora India Ltd?
De Nora India Ltd Cash conversion cycle is 183 days, above its 5-year historical median of 165 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) 0.52 0.65
ROE (%) 1.41 17.17
ROCE (%) 2.42 22.95
Cash Conversion Cycle 183 days 165 days

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

Q.9 Debt to Equity ratio of De Nora India Ltd?
De Nora India Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.09, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of De Nora India Ltd?
De Nora India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of De Nora India Ltd?

Q.1 Promoter shareholding and pledge status of De Nora India Ltd?
Promoters hold 53.68% of the De Nora India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does De Nora India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of De Nora India Ltd vs industry peers?
De Nora India Ltd revenue CAGR is 7.29%, compared to the industry median CAGR of 7.29%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -7.1 7.3
Gross Profit Growth (%) -84.6 24
Operating Profit Growth (%) -104.8 21
Net Profit Growth (%) -89.5 19.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.52 1.1
ROE (%) 1.41 11.33
ROCE (%) 2.42 14.01
Cash Conversion Cycle (days) 182.9 90

Valuation & price assessment

Q.1 Stock return of De Nora India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR		 8.2% 23% -12.2% 2.5%
Q.2 Valuation ratios of De Nora India Ltd vs historical?
The current P/E ratio of 44.48 is higher than its historical median of 36.84, indicating that the stock is trading above 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 44.48 36.84 19.09
Price to Book 3.11 4.57 1.95
Price to Sales 3.31 5.74 1.73
EV to EBITDA 27.24 24.18 10.27

Check more companies

1. Graphite India
2. HEG
3. Esab india
4. Ador Welding
5. Diffusion Engineers
6. GEE
7. De Nora India
8. D&H India
9. Panasonic Carbon
10. Royal Arc Electrodes

Check trending companies

1. IFCI Ltd.
2. Aditya Birla Lifestyle Brands Ltd.
3. Aditya Birla Capital Ltd.
4. Tata Steel Ltd.
5. Nippon Life India Asset Management Ltd.
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

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:

×