Dynamatic Technologies Ltd (DYNAMATECH) 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

Centum Electron

Kennametal India

GMM Pfaudler

Dynamatic Tech.

Praj Industries

Jupiter Wagons

Lloyds Engineeri

Titagarh Rail

Texmaco Rail

Elecon Engg.Co

Aequs

Why is Dynamatic Technologies Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.38%

Poor long term growth as Net Sales has grown by an annual rate of 6.64% and Operating profit at 13.57% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.69 times

Positive results in Dec 25

OPERATING PROFIT TO INTEREST(Q) Highest at 3.56 times
DEBT-EQUITY RATIO(HY) Lowest at 0.78 times
NET SALES(Q) Highest at Rs 424.87 cr

With ROCE of 6.8, it has a Very Expensive valuation with a 6 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 78.31%, its profits have risen by 19.4% ; the PEG ratio of the company is 7.9

High Institutional Holdings at 25.63%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 78.31% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dynamatic Tech. 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 Dynamatic Tech. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Dynamatic Tech.

78.31%

1.89

41.40%

Sensex

-1.36%

-0.10

13.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.64%

EBIT Growth (5y)

13.57%

EBIT to Interest (avg)

1.61

Debt to EBITDA (avg)

3.95

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

1.12

Tax Ratio

33.69%

Dividend Payout Ratio

3.16%

Pledged Shares

Institutional Holding

25.63%

ROCE (avg)

8.15%

ROE (avg)

6.62%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

153

Industry P/E

Price to Book Value

9.65

EV to EBIT

81.34

EV to EBITDA

46.10

EV to Capital Employed

6.04

EV to Sales

5.05

PEG Ratio

7.89

Dividend Yield

0.04%

ROCE (Latest)

6.81%

ROE (Latest)

4.66%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bullish

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

18What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 3.56 times

DEBT-EQUITY RATIO(HY)

Lowest at 0.78 times

NET SALES(Q)

Highest at Rs 424.87 cr

PBDIT(Q)

Highest at Rs 50.05 cr.

PBT LESS OI(Q)

Highest at Rs 16.33 cr.

PAT(Q)

Highest at Rs 16.14 cr.

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.73 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 45.78 cr

Loading Valuation Snapshot...

Here's what is working for Dynamatic Tech.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 16.33 cr has Grown at 104.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 8.00 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 16.14 cr has Grown at 81.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 8.91 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 3.56 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 424.87 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 50.05 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 16.33 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 16.14 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.78 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 Dynamatic Tech.

Inventory Turnover Ratio- Half Yearly

Lowest at 3.73 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 45.78 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents