Valuation Metrics and Market Position
At present, Divyadhan Recy. exhibits a price-to-earnings (PE) ratio of approximately 32.1, which is notably high compared to many industry peers. Its price-to-book value stands at 1.42, indicating that the market values the company at over one and a third times its net asset value. The enterprise value to EBIT ratio is 32.6, while the EV to EBITDA ratio is 19.1, both reflecting elevated valuation multiples. These figures collectively underpin the recent upgrade of its valuation grade to "very expensive."
Return on capital employed (ROCE) and return on equity (ROE) are modest, at 4.07% and 4.41% respectively, signalling relatively low profitability and efficiency in generating returns from capital invested. The absence of a dividend...
Read More





