Check Before You Invest : Denta Water And Infra Solutions Ltd

Snapshot

Q.1 Which industry/sub-sector does Denta Water And Infra Solutions Ltd belong to?

Denta Water And Infra Solutions Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is Denta Water And Infra Solutions Ltd a good quality company?

Denta Water And Infra Solutions Ltd is a average quality company, based on a somewhat consistent 4-year financial track record.

Q.3 Is Denta Water And Infra Solutions Ltd undervalued or overvalued?

Denta Water And Infra Solutions Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Denta Water And Infra Solutions Ltd a good buy now?

Denta Water And Infra Solutions 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

Q.1 Revenue growth of Denta Water And Infra Solutions Ltd?

Denta Water And Infra Solutions Ltd revenue growth is -14.8% for FY-2025, which is below its 3-year CAGR of 19.35%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Denta Water And Infra Solutions Ltd?

Denta Water And Infra Solutions Ltd Return on capital employed is 25.21% for FY-2025, which is below its 3-year historical median of 60.46%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Denta Water And Infra Solutions Ltd?

Denta Water And Infra Solutions Ltd Return on Asset is 15.31%, which is below its 3-year historical median of 33.68%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Denta Water And Infra Solutions Ltd?

Denta Water And Infra Solutions Ltd Return on equity is 18.46% for FY-2025, which is below its 3-year historical median of 45.03%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Denta Water And Infra Solutions Ltd?

Denta Water And Infra Solutions Ltd Cash conversion cycle is 148 days, above its 3-year historical median of 32 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	0.59	1.33
ROE	18.46	45.03
ROCE	25.21	60.46
Cash Conversion Cycle	148 days	32 days

Q.6 Gross Profit margin of Denta Water And Infra Solutions Ltd?

Denta Water And Infra Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 35.5% for FY-2025, which is in line with its 3-year median of 35.5%, indicating stable margins.

Q.7 Operating Profit Margin of Denta Water And Infra Solutions Ltd?

Denta Water And Infra Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 33.54% for FY-2025, which is in line with its 3-year median of 33.54% indicating stable margins.

Q.8 Net Profit Margin of Denta Water And Infra Solutions Ltd?

Denta Water And Infra Solutions Ltd Net Profit Margin is 26.02% for FY-2025, is in line with with its 3-year median of 26.02%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin	35.5	35.5
Operating Profit Margin	33.54	33.54
Net Profit Margin	26.02	26.02

Q.9 Debt to Equity ratio of Denta Water And Infra Solutions Ltd?

Denta Water And Infra Solutions Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.41, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Denta Water And Infra Solutions Ltd?

Denta Water And Infra Solutions Ltd Debt to cash flow from operations is -0.01, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Denta Water And Infra Solutions Ltd?

Promoters hold 71.91% of the Denta Water And Infra Solutions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Denta Water And Infra Solutions Ltd vs industry peers?

Denta Water And Infra Solutions Ltd revenue CAGR is 19.35%, compared to the industry median CAGR of 19.09%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	-14.8	19.1
Gross Profit Growth	-12.2	38.2
Operating Profit Growth	-13.9	32.6
Net Profit Growth	-11.7	52.7

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	0.59	0.85
ROE	18.46	15
ROCE	25.21	15.97
Cash Conversion Cycle (days)	147.98	56

Valuation & price assessment

Q.1 Stock return of Denta Water And Infra Solutions Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -1.33% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-1.3%

Q.3 Valuation ratios of Denta Water And Infra Solutions Ltd vs historical?

The current P/E is lower 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	11.41	13.63	22.41
Price to Book	1.66	1.97	1.92
Price to Sales	3	3.58	1.67
EV to EBITDA	7.47	8.73	12.09

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