Check Before You Invest : Dredging Corporation Of India Ltd

Snapshot

Q.1 Which industry/sub-sector does Dredging Corporation Of India Ltd belong to?

Dredging Corporation Of India Ltd belongs to the Transportation & Logistics sector, operating specifically within the Shipping segment.

Q.2 Is Dredging Corporation Of India Ltd a good quality company?

Dredging Corporation Of India Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Dredging Corporation Of India Ltd undervalued or overvalued?

Dredging Corporation Of India Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Dredging Corporation Of India Ltd a good buy now?

Dredging Corporation Of 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

Q.1 Revenue growth of Dredging Corporation Of India Ltd?

Dredging Corporation Of India Ltd revenue growth is 20.8% for FY-2025, which is above its 5-year CAGR of 8.78%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Dredging Corporation Of India Ltd?

Dredging Corporation Of India Ltd Return on capital employed is 0.61% for FY-2025, which is in line with its 5-year historical median of 0.61%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Dredging Corporation Of India Ltd?

Dredging Corporation Of India Ltd Return on Asset is -1.09%, which is in line with its 5-year historical median of -1.09%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Dredging Corporation Of India Ltd?

Dredging Corporation Of India Ltd Return on equity is -2.22% for FY-2025, which is in line with its 5-year historical median of -2.22%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Dredging Corporation Of India Ltd?

Dredging Corporation Of India Ltd Cash conversion cycle is 16 days, above its 5-year historical median of 13 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	0.45	0.4
ROE	-2.22	-2.22
ROCE	0.61	0.61
Cash Conversion Cycle	16 days	13 days

Q.6 Gross Profit margin of Dredging Corporation Of India Ltd?

Dredging Corporation Of India Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.4% for FY-2025, which is in line with its 5-year median of 9.4%, indicating stable margins.

Q.7 Operating Profit Margin of Dredging Corporation Of India Ltd?

Dredging Corporation Of India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.23% for FY-2025, which is in line with its 5-year median of 12.23% indicating stable margins.

Q.8 Net Profit Margin of Dredging Corporation Of India Ltd?

Dredging Corporation Of India Ltd Net Profit Margin is -2.4% for FY-2025, is in line with with its 5-year median of -2.4%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	9.4	9.4
Operating Profit Margin	12.23	12.23
Net Profit Margin	-2.4	-2.4

Q.9 Debt to Equity ratio of Dredging Corporation Of India Ltd?

Dredging Corporation Of India Ltd Debt-to-Equity ratio is 0.76, which is above with the industry average of 0.31, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Dredging Corporation Of India Ltd?

Dredging Corporation Of India Ltd Debt to cash flow from operations is 8.24, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Dredging Corporation Of India Ltd?

Promoters hold 73.47% of the Dredging Corporation Of India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Dredging Corporation Of India Ltd vs industry peers?

Dredging Corporation Of India Ltd revenue CAGR is 8.78%, compared to the industry median CAGR of 5.09%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	20.8	5.1
Gross Profit Growth	-39.6	11.7
Operating Profit Growth	-30.7	8.4
Net Profit Growth	-181.8	19.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.45	0.43
ROE	-2.22	9.44
ROCE	0.61	9.37
Cash Conversion Cycle (days)	15.74	-4

Valuation & price assessment

Q.1 Stock return of Dredging Corporation Of India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 9.4% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	9.4%	19.7%	42.6%	70.3%

Q.3 Valuation ratios of Dredging Corporation Of India Ltd vs historical?

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

Q.4 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	-	51.03	16.32
Price to Book	2.34	0.96	1.38
Price to Sales	2.23	1.44	2.55
EV to EBITDA	19.49	12.91	13.25

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