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Check Before You Invest : D-Link (India) Ltd

BSE: 533146 NSE: DLINKINDIA ISIN: INE250K01012
  |   Sector:  IT & ITES   |   Industry:  IT - Networking

Snapshot

Q.1 Which industry/sub-sector does D-Link (India) Ltd belong to?
D-Link (India) Ltd belongs to the IT & ITES sector, operating specifically within the IT - Networking segment.
Q.2 Is D-Link (India) Ltd a good quality company?
D-Link (India) 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 D-Link (India) Ltd undervalued or overvalued?
D-Link (India) Ltd appears Somewhat overvalued, as its key valuation ratios are higher 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 13.06 14.02
Price to Book 2.63 3.04
Price to Sales 0.84 0.95
EV to EBITDA 8.71 9.35
Q.4 Is D-Link (India) Ltd a good buy now?
D-Link (India) 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 D-Link (India) Ltd?
D-Link (India) Ltd revenue growth is 13.1% for FY-2026, which is below its 5-year CAGR of 16.6%, indicating slower growth.

Q.2 Gross Profit margin of D-Link (India) Ltd?
D-Link (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.4% for FY-2026, which is below its 5-year median of 10.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of D-Link (India) Ltd?
D-Link (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.49% for FY-2026, which is below its 5-year median of 9.19% indicating decreasing margins.

Q.4 Net Profit Margin of D-Link (India) Ltd?
D-Link (India) Ltd Net Profit Margin is 6.65% for FY-2026, is below its 5-year median of 7.32%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 9.4 10.3
Operating Profit Margin (%) 8.49 9.19
Net Profit Margin (%) 6.65 7.32

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of D-Link (India) Ltd?
D-Link (India) Ltd Return on Asset is 10.89%, which is below its 5-year historical median of 12.03%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of D-Link (India) Ltd?
D-Link (India) Ltd Return on capital employed is 28.82% for FY-2026, which is below its 5-year historical median of 30.77%. 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 D-Link (India) Ltd?
D-Link (India) Ltd Return on equity is 21.21% for FY-2026, which is below its 5-year historical median of 22.77%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of D-Link (India) Ltd?
D-Link (India) Ltd Cash conversion cycle is 49 days, above its 5-year historical median of 46 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) 1.64 1.64
ROE (%) 21.21 22.77
ROCE (%) 28.82 30.77
Cash Conversion Cycle 49 days 46 days

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

Q.9 Debt to Equity ratio of D-Link (India) Ltd?
D-Link (India) Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.05, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of D-Link (India) Ltd?
D-Link (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 D-Link (India) Ltd?

Q.1 Promoter shareholding and pledge status of D-Link (India) Ltd?
Promoters hold 51.02% of the D-Link (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does D-Link (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of D-Link (India) Ltd vs industry peers?
D-Link (India) Ltd revenue CAGR is 16.60%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 13.1 -
Gross Profit Growth (%) - 26.9
Operating Profit Growth (%) 3.9 61.4
Net Profit Growth (%) - 28.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.64 1.56
ROE (%) 21.21 21.26
ROCE (%) 28.82 26.97
Cash Conversion Cycle (days) 48.73 29

Valuation & price assessment

Q.1 Stock return of D-Link (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
16.6% 23% 10.5% -11.5%
Q.2 Valuation ratios of D-Link (India) Ltd vs historical?
The current P/E ratio of 13.06 is lower than its historical median of 14.02, 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 13.06 14.02 10.86
Price to Book 2.63 3.04 1.35
Price to Sales 0.84 0.95 0.95
EV to EBITDA 8.71 9.35 7.80

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