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 3.17 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.17 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) Highest at Rs 361.57 cr
5
Stock is technically in a Bullish range
- The technical trend has improved from Mildly Bullish on 05-May-26 and has generated 24.8% returns since then
- Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST, DOW and OBV
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
111.67%
2.21
59.14%
Sensex
-3.04%
-0.49
12.94%
Quality key factors
Factor
Value
Sales Growth (5y)
21.88%
EBIT Growth (5y)
49.94%
EBIT to Interest (avg)
2.02
Debt to EBITDA (avg)
3.74
Net Debt to Equity (avg)
0.70
Sales to Capital Employed (avg)
0.73
Tax Ratio
20.31%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
12.96%
ROCE (avg)
7.18%
ROE (avg)
7.19%
Valuation Key Factors 
Factor
Value
P/E Ratio
57
Industry P/E
41
Price to Book Value
5.32
EV to EBIT
35.88
EV to EBITDA
26.12
EV to Capital Employed
3.54
EV to Sales
4.42
PEG Ratio
1.39
Dividend Yield
NA
ROCE (Latest)
9.11%
ROE (Latest)
8.94%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Dow Theory
Mildly Bearish
Bullish
OBV
No Trend
No Trend
Technical Movement
14What is working for the Company
NET SALES(Latest six months)
At Rs 656.03 cr has Grown at 28.60%
ROCE(HY)
Highest at 9.67%
PAT(9M)
Higher at Rs 64.65 Cr
-10What is not working for the Company
INTEREST(9M)
At Rs 48.14 cr has Grown at 30.07%
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.98 times
OPERATING PROFIT TO INTEREST (Q)
Lowest at 2.90 times
PBT LESS OI(Q)
At Rs 17.57 cr has Fallen at -13.8% (vs previous 4Q average
PAT(Q)
At Rs 16.15 cr has Fallen at -18.8% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for DEE Development
Net Sales - Latest six months
At Rs 656.03 cr has Grown at 28.60%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for DEE Development
Operating Profit to Interest - Quarterly
Lowest at 2.90 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 17.57 cr has Fallen at -13.8% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 20.39 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 16.15 cr has Fallen at -18.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 19.89 CrMOJO Watch
Near term PAT trend is very negative
PAT (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
Interest - Nine Monthly
At Rs 48.14 cr has Grown at 30.07%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)