Why is DEE Development Engineers Ltd ?
1
Poor Management Efficiency with a low ROCE of 7.70%
- The company has been able to generate a Return on Capital Employed (avg) of 7.70% signifying low profitability per unit of total capital (equity and debt)
2
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.69 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.69 times
- The company has been able to generate a Return on Equity (avg) of 7.19% signifying low profitability per unit of shareholders funds
3
Healthy long term growth as Operating profit has grown by an annual rate 54.83%
4
The company has declared Positive results for the last 5 consecutive quarters
- ROCE(HY) Highest at 9.67%
- PBT LESS OI(Q) At Rs 33.86 cr has Grown at 55.0% (vs previous 4Q average)
- NET SALES(Q) At Rs 361.57 cr has Grown at 35.6% (vs previous 4Q average)
5
With ROCE of 9.1, it has a Very Expensive valuation with a 3.4 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 132.02%, its profits have risen by 82.4% ; the PEG ratio of the company is 0.7
How much should you hold?
- Overall Portfolio exposure to DEE Development should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is DEE Development for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
DEE Development
132.02%
2.37
55.68%
Sensex
-7.55%
-0.58
13.06%
Quality key factors
Factor
Value
Sales Growth (5y)
20.33%
EBIT Growth (5y)
54.83%
EBIT to Interest (avg)
1.92
Debt to EBITDA (avg)
3.74
Net Debt to Equity (avg)
0.70
Sales to Capital Employed (avg)
0.73
Tax Ratio
19.83%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
14.89%
ROCE (avg)
7.18%
ROE (avg)
7.19%
Valuation Key Factors 
Factor
Value
P/E Ratio
58
Industry P/E
36
Price to Book Value
5.15
EV to EBIT
37.80
EV to EBITDA
27.23
EV to Capital Employed
3.44
EV to Sales
4.56
PEG Ratio
0.70
Dividend Yield
NA
ROCE (Latest)
9.11%
ROE (Latest)
8.94%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Dow Theory
Bullish
Bullish
OBV
Bullish
Bullish
Technical Movement
24What is working for the Company
ROCE(HY)
Highest at 9.67%
PBT LESS OI(Q)
At Rs 33.86 cr has Grown at 55.0% (vs previous 4Q average
NET SALES(Q)
At Rs 361.57 cr has Grown at 35.6% (vs previous 4Q average
PBDIT(Q)
Highest at Rs 63.64 cr.
PAT(Q)
At Rs 26.35 cr has Grown at 24.4% (vs previous 4Q average
-6What is not working for the Company
INTEREST(Latest six months)
At Rs 30.98 cr has Grown at 23.03%
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.98 times
Loading Valuation Snapshot...
Here's what is working for DEE Development
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 33.86 cr has Grown at 55.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 21.85 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 361.57 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 361.57 cr has Grown at 35.6% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 266.70 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 63.64 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 26.35 cr has Grown at 24.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 21.18 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for DEE Development
Interest - Latest six months
At Rs 30.98 cr has Grown at 23.03%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 2.98 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






