Understanding the Current Rating
The 'Hold' rating assigned to D.P. Abhushan Ltd indicates a balanced stance for investors, suggesting that the stock is fairly valued at present and may offer moderate returns relative to its risk profile. This rating is derived from a comprehensive assessment of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall investment thesis and helps investors gauge the stock’s potential in the current market environment.
Quality Assessment
As of 24 December 2025, D.P. Abhushan Ltd holds an average quality grade. The company demonstrates a strong ability to service its debt, with a low Debt to EBITDA ratio of 1.46 times, indicating prudent financial management and manageable leverage. Furthermore, the firm has reported positive results for 11 consecutive quarters, underscoring consistent operational performance. Notably, quarterly Profit Before Tax (PBT) excluding other income stands at ₹69.22 crores, reflecting a robust growth rate of 108.06%. Operating profit (PBDIT) reached a high of ₹75.71 crores, while Profit After Tax (PAT) peaked at ₹51.46 crores. These figures highlight the company’s capacity to generate sustainable earnings and maintain operational efficiency.
Valuation Perspective
The valuation grade for D.P. Abhushan Ltd is considered fair. The stock trades at a discount relative to its peers’ historical valuations, supported by an Enterprise Value to Capital Employed ratio of 5.2. The company’s Return on Capital Employed (ROCE) stands at an impressive 30.8%, signalling effective utilisation of capital to generate profits. Despite the stock’s modest return of 0.25% over the past year, profits have surged by 80.9%, resulting in a low Price/Earnings to Growth (PEG) ratio of 0.3. This suggests that the stock may be undervalued relative to its earnings growth potential, offering a reasonable entry point for investors seeking value with growth prospects.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend
The financial trend for D.P. Abhushan Ltd is positive, reflecting steady growth and improving profitability. Net sales have expanded at an annual rate of 37.09%, while operating profit has grown even faster at 43.64%. This robust growth trajectory is supported by the company’s ability to consistently deliver positive quarterly results, which is a strong indicator of operational resilience and effective management. The stock’s year-to-date return of 2.24% and six-month gain of 4.38% further demonstrate moderate market confidence in the company’s financial health.
Technical Outlook
From a technical perspective, the stock is currently exhibiting a sideways trend. This suggests that while there is no strong directional momentum, the stock price is maintaining a relatively stable range. The one-day gain of 3.01% and one-week increase of 6.06% indicate short-term positive sentiment, although the one-month and three-month returns show slight declines of 3.02% and 0.35% respectively. Investors should monitor technical signals closely for potential breakout or breakdown scenarios, but the current sideways movement supports the 'Hold' rating as the stock consolidates.
Additional Considerations
Despite the company’s solid fundamentals and positive financial trends, domestic mutual funds currently hold no stake in D.P. Abhushan Ltd. Given that mutual funds typically conduct thorough on-the-ground research, their absence may reflect caution regarding the stock’s price or business model. This factor adds a layer of complexity for investors, suggesting that while the stock is fundamentally sound, market participants remain watchful.
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What the Hold Rating Means for Investors
For investors, the 'Hold' rating on D.P. Abhushan Ltd suggests maintaining existing positions rather than initiating new ones or exiting holdings. The stock’s fair valuation combined with positive financial trends and stable technicals indicates that it is neither significantly undervalued nor overvalued at present. Investors should consider this rating as a signal to monitor the stock closely for any changes in fundamentals or market conditions that could warrant a reassessment.
Given the company’s strong earnings growth and reasonable valuation metrics, there is potential for upside if operational momentum continues. However, the sideways technical trend and lack of institutional backing advise caution. Investors with a medium to long-term horizon may find value in holding the stock while awaiting clearer signals of sustained growth or market re-rating.
Summary
In summary, D.P. Abhushan Ltd’s current 'Hold' rating by MarketsMOJO, updated on 24 December 2025, reflects a balanced investment outlook. The company’s average quality, fair valuation, positive financial trend, and sideways technical stance collectively support this recommendation. As of today, the stock presents a stable profile with moderate growth prospects, making it suitable for investors seeking steady exposure in the Gems, Jewellery and Watches sector without aggressive risk-taking.
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