Diamond Power Infrastructure Ltd (DIACABS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Diamond Power

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Why is Diamond Power Infrastructure Ltd ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 115.96% and Operating profit at -221.64% over the last 5 years
The company has a negative book value of Rs 604.20 crore
The company has been able to generate a Return on Equity (avg) of 2.97% signifying low profitability per unit of shareholders funds

With a growth in Net Profit of 2.71%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 11 consecutive quarters
ROCE(HY) Highest at 10.40%
NET SALES(Q) At Rs 689.88 cr has Grown at 44.5% (vs previous 4Q average)
PAT(Q) At Rs 58.45 cr has Grown at 47.9% (vs previous 4Q average)

Risky - Negative Book Value

The company has a negative book value of Rs. -604.2 cr
Over the past year, while the stock has generated a return of 142.50%, its profits have risen by 416.5% ; the PEG ratio of the company is 0.3
The stock is trading risky as compared to its average historical valuations

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Diamond Power should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Diamond Power for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Diamond Power

142.5%

2.97

48.02%

Sensex

-10.5%

-0.78

13.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

115.96%

EBIT Growth (5y)

156.25%

EBIT to Interest (avg)

-4.68

Debt to EBITDA (avg)

13.61

Net Debt to Equity (avg)

-4.03

Sales to Capital Employed (avg)

-2.63

Tax Ratio

3.01%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

15.52%

ROCE (avg)

-11.22%

ROE (avg)

2.97%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

112

Industry P/E

Price to Book Value

-36.41

EV to EBIT

104.16

EV to EBITDA

90.60

EV to Capital Employed

13.36

EV to Sales

10.63

PEG Ratio

0.32

Dividend Yield

ROCE (Latest)

10.55%

ROE (Latest)

Negative BV

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

29What is working for the Company

ROCE(HY)

Highest at 10.40%

NET SALES(Q)

At Rs 689.88 cr has Grown at 44.5% (vs previous 4Q average

PAT(Q)

At Rs 58.45 cr has Grown at 47.9% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Lowest at -4.20 times

PBT LESS OI(Q)

At Rs 51.01 cr has Grown at 32.5% (vs previous 4Q average

EPS(Q)

Highest at Rs 1.11

-9What is not working for the Company

INTEREST(Latest six months)

At Rs 28.60 cr has Grown at 36.71%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.11 times

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Here's what is working for Diamond Power

Net Sales - Quarterly

At Rs 689.88 cr has Grown at 44.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 477.53 Cr

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 58.45 cr has Grown at 47.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 39.52 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 51.01 cr has Grown at 32.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 38.49 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 1.11

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at -4.20 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Diamond Power

Interest - Latest six months

At Rs 28.60 cr has Grown at 36.71%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 4.11 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 7.68 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income