Check Before You Invest : Dynacons Systems & Solutions Ltd

BSE: 532365 NSE: DSSL ISIN: INE417B01040

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Dynacons Systems & Solutions Ltd belong to?

Dynacons Systems & Solutions Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Dynacons Systems & Solutions Ltd a good quality company?

Dynacons Systems & Solutions Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Dynacons Systems & Solutions Ltd undervalued or overvalued?

Dynacons Systems & Solutions Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Dynacons Systems & Solutions Ltd a good buy now?

Dynacons Systems & 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 Dynacons Systems & Solutions Ltd?

Dynacons Systems & Solutions Ltd revenue growth is 23.7% for FY-2025, which is below its 5-year CAGR of 31.03%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Dynacons Systems & Solutions Ltd?

Dynacons Systems & Solutions Ltd Return on capital employed is 46.57% for FY-2025, which is above its 5-year historical median of 37.06%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Dynacons Systems & Solutions Ltd?

Dynacons Systems & Solutions Ltd Return on Asset is 10.65%, which is above its 5-year historical median of 9.53%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Dynacons Systems & Solutions Ltd?

Dynacons Systems & Solutions Ltd Return on equity is 37.5% for FY-2025, which is in line with its 5-year historical median of 37.5%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Dynacons Systems & Solutions Ltd?

Dynacons Systems & Solutions Ltd Cash conversion cycle is -2734 days, below its 5-year historical median of -1778 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.86	2.3
ROE	37.5	37.5
ROCE	46.57	37.06
Cash Conversion Cycle	-2734 days	-1778 days

Q.6 Gross Profit margin of Dynacons Systems & Solutions Ltd?

Dynacons Systems & Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.8% for FY-2025, which is above its 5-year median of 5.7%, indicating increasing margins.

Q.7 Operating Profit Margin of Dynacons Systems & Solutions Ltd?

Dynacons Systems & Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.31% for FY-2025, which is above its 5-year median of 6.79% indicating increasing margins.

Q.8 Net Profit Margin of Dynacons Systems & Solutions Ltd?

Dynacons Systems & Solutions Ltd Net Profit Margin is 5.72% for FY-2025, is above with its 5-year median of 4.15%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	7.8	5.7
Operating Profit Margin	8.31	6.79
Net Profit Margin	5.72	4.15

Q.9 Debt to Equity ratio of Dynacons Systems & Solutions Ltd?

Dynacons Systems & Solutions Ltd Debt-to-Equity ratio is 0.23, which is above with the industry average of 0.11, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Dynacons Systems & Solutions Ltd?

Dynacons Systems & Solutions Ltd Debt to cash flow from operations is 0.81, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Dynacons Systems & Solutions Ltd?

Promoters hold 60.89% of the Dynacons Systems & Solutions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Dynacons Systems & Solutions Ltd vs industry peers?

Dynacons Systems & Solutions Ltd revenue CAGR is 31.03%, compared to the industry median CAGR of 10.86%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	23.7	10.9
Gross Profit Growth	33.8	19
Operating Profit Growth	34.6	NAN
Net Profit Growth	33.3	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.86	0.5
ROE	37.5	5.83
ROCE	46.57	6.79
Cash Conversion Cycle (days)	-2734.15	47

Valuation & price assessment

Q.1 Stock return of Dynacons Systems & Solutions Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 54.3% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	54.3%	68.6%	41.1%	3.1%

Q.3 Valuation ratios of Dynacons Systems & Solutions 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	16.55	18.97	47.37
Price to Book	4.69	5.50	2.63
Price to Sales	1.03	0.88	4.79
EV to EBITDA	9.45	11.32	16.48

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