Why is DEE Development Engineers Ltd ?
1
Poor Management Efficiency with a low ROCE of 7.46%
- The company has been able to generate a Return on Capital Employed (avg) of 7.46% 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 3.28 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.28 times
- The company has been able to generate a Return on Equity (avg) of 5.88% signifying low profitability per unit of shareholders funds
3
Healthy long term growth as Operating profit has grown by an annual rate 53.79%
4
The company has declared Positive results for the last 4 consecutive quarters
- PBT LESS OI(Q) At Rs 18.84 cr has Grown at 45.0% (vs previous 4Q average)
- PAT(Q) At Rs 22.15 cr has Grown at 79.9% (vs previous 4Q average)
- NET SALES(Q) Highest at Rs 286.67 cr
5
With ROCE of 7.5, it has a Very Attractive valuation with a 1.5 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 -19.87%, its profits have risen by 66%
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, Low Return
Absolute
Risk Adjusted
Volatility
DEE Development
-19.87%
-0.37
53.80%
Sensex
7.97%
0.69
11.53%
Quality key factors
Factor
Value
Sales Growth (5y)
17.90%
EBIT Growth (5y)
53.79%
EBIT to Interest (avg)
1.71
Debt to EBITDA (avg)
4.08
Net Debt to Equity (avg)
0.58
Sales to Capital Employed (avg)
0.70
Tax Ratio
19.55%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
15.64%
ROCE (avg)
5.94%
ROE (avg)
5.88%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
32
Price to Book Value
1.77
EV to EBIT
14.15
EV to EBITDA
10.33
EV to Capital Employed
1.49
EV to Sales
1.85
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
7.46%
ROE (Latest)
5.88%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
21What is working for the Company
PBT LESS OI(Q)
At Rs 18.84 cr has Grown at 45.0% (vs previous 4Q average
PAT(Q)
At Rs 22.15 cr has Grown at 79.9% (vs previous 4Q average
NET SALES(Q)
Highest at Rs 286.67 cr
-5What is not working for the Company
INTEREST(Latest six months)
At Rs 28.81 cr has Grown at 23.75%
Loading Valuation Snapshot...
Here's what is working for DEE Development
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 18.84 cr has Grown at 45.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 12.99 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 22.15 cr has Grown at 79.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 12.31 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 286.67 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 286.67 cr has Grown at 21.7% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 235.53 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for DEE Development
Interest - Latest six months
At Rs 28.81 cr has Grown at 23.75%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
Highest at Rs 5.63 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






