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Check Before You Invest : Veljan Denison Ltd

BSE: 505232 NSE: ISIN: INE232E01013
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Compressors / Pumps

Snapshot

Q.1 Which industry/sub-sector does Veljan Denison Ltd belong to?
Veljan Denison Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Compressors / Pumps segment.
Q.2 Is Veljan Denison Ltd a good quality company?
Veljan Denison Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Veljan Denison Ltd undervalued or overvalued?
Veljan Denison Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Veljan Denison Ltd a good buy now?
Veljan Denison 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

Q.1 Revenue growth of Veljan Denison Ltd?
Veljan Denison Ltd revenue growth is 14% for FY-2025 , which is above its 5 year CAGR of 11.3% , indicating faster growth.
Q.2 Gross Profit margin of Veljan Denison Ltd?
Veljan Denison Ltd Gross profit margin which is the profit after deduction of direct costs, is 25.3% for FY-2025 , which is in line with its 5 year median of 25.3% , indicating stable margins.
Q.3 Operating Profit Margin of Veljan Denison Ltd?
Veljan Denison Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.63% for FY-2025 , which is in line with its 5 year median of 23.63% indicating stable margins.
Q.4 Net Profit Margin of Veljan Denison Ltd?
Veljan Denison Ltd Net Profit Margin is 15.87% for FY-2025 , is in line with with its 5 year median of 15.87%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 25.3 25.3
Operating Profit Margin 23.63 23.63
Net Profit Margin 15.87 15.87
Q.5 Return on Asset of Veljan Denison Ltd?
Veljan Denison Ltd Return on Asset is 9.21%, which is above its 5 year historical median of 8.66%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Veljan Denison Ltd?
Veljan Denison Ltd Return on equity is 10.7% for FY-2025 , which is above its historical median of 10.29%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Veljan Denison Ltd?
Veljan Denison Ltd Return on capital employed is 14.33% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Veljan Denison Ltd?
Veljan Denison Ltd Cash conversion cycle is 212 days, below its historical median of 217 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.58 0.53
ROE 10.7 10.29
ROCE 14.33 13.6
Cash Conversion Cycle 212 days 217 days
Q.9 Debt to Equity ratio of Veljan Denison Ltd?
Veljan Denison Ltd Debt-to-Equity ratio is 0.04 , which is lower with the industry average of 0.07 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Veljan Denison Ltd?
Veljan Denison Ltd Debt to cash flow from operations is 0.5 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Veljan Denison Ltd?
Promoters hold 74.98% of the Veljan Denison Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Veljan Denison Ltd vs industry peers?
Veljan Denison Ltd revenue CAGR is 11.33% , compared to the industry median CAGR of 14.24% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 141.6 1,124.1
Gross Profit 35.9 125
Operating Profit 33 162
Net Profit 22 61
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.58 1
ROE 10.7 15
ROCE 14.33 19.99
Cash Conversion Cycle (days) 211.63 92

Valuation & price assessment

Q.1 Stock return of Veljan Denison Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 12.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 12.3% 21.9% 16.9% -8.8%
Q.3 Valuation ratios of Veljan Denison Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 18.27 18.58 38.00
Price to Book 1.89 1.16 5.26
Price to Sales 3.05 2.48 3.25
EV to EBITDA 10.34 9.10 22.07

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