Check Before You Invest : Divine Power Energy Ltd

Q: Which industry/sub-sector does Divine Power Energy Ltd belong to?

Divine Power Energy Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q: Is Divine Power Energy Ltd a good quality company?

Divine Power Energy Ltd is a weak quality company, based on a inconsistent 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 Divine Power Energy Ltd undervalued or overvalued?

Divine Power Energy Ltd appears 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. Price to Earnings, Current: 63.72, Historic Median: 53.98. Price to Book, Current: 10.59, Historic Median: 7.02. Price to Sales, Current: 3.13, Historic Median: 1.56. EV to EBITDA, Current: 35.79, Historic Median: 26.70

Q: Is Divine Power Energy Ltd a good buy now?

Divine Power Energy 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

Q: Gross Profit margin of Divine Power Energy Ltd?

Divine Power Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.2% for FY-2025, which is in line with its 3-year median of 4.2%, indicating stable margins.

Q: Operating Profit Margin of Divine Power Energy Ltd?

Divine Power Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.76% for FY-2025, which is below its 3-year median of 6.47% indicating decreasing margins.

Q: Net Profit Margin of Divine Power Energy Ltd?

Divine Power Energy Ltd Net Profit Margin is 2.68% for FY-2025, is in line with its 3-year median of 2.68%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 4.2, Historic Median: 4.2. Operating Profit Margin (%), Current: 5.76, Historic Median: 6.47. Net Profit Margin (%), Current: 2.68, Historic Median: 2.68

Q: Return on Asset of Divine Power Energy Ltd?

Divine Power Energy Ltd Return on Asset is 6.71%, which is in line with its 3-year historical median of 6.71%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Divine Power Energy Ltd?

Divine Power Energy Ltd Return on capital employed is 14.55% for FY-2025, which is in line with its 3-year historical median of 14.55%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q: Return on Equity (ROE) of Divine Power Energy Ltd?

Divine Power Energy Ltd Return on equity is 16.38% for FY-2025, which is in line with its 3-year historical median of 16.38%, indicating the business is making similar use of its shareholders capital.

Check Before You Invest : Divine Power Energy Ltd

Snapshot

Q.1 Which industry/sub-sector does Divine Power Energy Ltd belong to?

Divine Power Energy Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is Divine Power Energy Ltd a good quality company?

Divine Power Energy Ltd is a weak quality company, based on a inconsistent 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 Divine Power Energy Ltd undervalued or overvalued?

Divine Power Energy Ltd appears 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	3-year Historic Median
Price to Earnings	63.72	53.98
Price to Book	10.59	7.02
Price to Sales	3.13	1.56
EV to EBITDA	35.79	26.70

Q.4 Is Divine Power Energy Ltd a good buy now?

Divine Power Energy 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

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.

Q.1 Gross Profit margin of Divine Power Energy Ltd?

Divine Power Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.2% for FY-2025, which is in line with its 3-year median of 4.2%, indicating stable margins.

Q.2 Operating Profit Margin of Divine Power Energy Ltd?

Divine Power Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.76% for FY-2025, which is below its 3-year median of 6.47% indicating decreasing margins.

Q.3 Net Profit Margin of Divine Power Energy Ltd?

Divine Power Energy Ltd Net Profit Margin is 2.68% for FY-2025, is in line with its 3-year median of 2.68%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	4.2	4.2
Operating Profit Margin (%)	5.76	6.47
Net Profit Margin (%)	2.68	2.68

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Divine Power Energy Ltd?

Divine Power Energy Ltd Return on Asset is 6.71%, which is in line with its 3-year historical median of 6.71%, indicating stable asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Divine Power Energy Ltd?

Divine Power Energy Ltd Return on capital employed is 14.55% for FY-2025, which is in line with its 3-year historical median of 14.55%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Divine Power Energy Ltd?

Divine Power Energy Ltd Return on equity is 16.38% for FY-2025, which is in line with its 3-year historical median of 16.38%, indicating the business is making similar use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Divine Power Energy Ltd?

Divine Power Energy Ltd Debt-to-Equity ratio is 1.02, which is above the industry average of 0.29, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Divine Power Energy Ltd?

Divine Power Energy Ltd Debt to cash flow from operations is -4.74, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Divine Power Energy Ltd?

Q.1 Promoter shareholding and pledge status of Divine Power Energy Ltd?

Promoters hold 63.20% of the Divine Power Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Divine Power Energy Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Divine Power Energy Ltd vs industry peers?

Divine Power Energy Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 24.05%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	-	24.1
Gross Profit Growth (%)	40	39.5
Operating Profit Growth (%)	42.9	42.8
Net Profit Growth (%)	50	44.2

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	2.5	1.18
ROE (%)	16.38	14.12
ROCE (%)	14.55	17.12
Cash Conversion Cycle (days)	78.4	85

Valuation & price assessment

Q.1 Stock return of Divine Power Energy Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 270.89% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	270.9%

Q.2 Valuation ratios of Divine Power Energy Ltd vs historical?

The current P/E ratio of 63.72 is higher than its historical median of 53.98, indicating that the stock is trading above its historical average valuation.

Q.3 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	63.72	53.98	43.78
Price to Book	10.59	7.02	4.74
Price to Sales	3.13	1.56	3.09
EV to EBITDA	35.79	26.70	21.60

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Check Before You Invest : Divine Power Energy 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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