Why is Dredging Corporation of India Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 1.70%
- Poor long term growth as Net Sales has grown by an annual rate of 9.61% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 10.50 times
2
With a growth in Operating Profit of 321.29%, the company declared Very Positive results in Mar 26
- OPERATING PROFIT TO INTEREST(Q) Highest at 5.97 times
- NET SALES(Q) Highest at Rs 478.23 cr
- PBDIT(Q) Highest at Rs 142.95 cr.
3
Stock is technically in a Bullish range
- The technical trend has improved from Mildly Bullish on 20-May-26 and has generated -1.17% returns since then
- Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and OBV
4
With ROCE of 0.9, it has a Fair valuation with a 1.9 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 45.97%, its profits have risen by 110.5% ; the PEG ratio of the company is 5.6
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Dredging Corpn. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Dredging Corpn.
62.64%
0.79
58.33%
Sensex
-3.09%
-0.50
12.94%
Quality key factors
Factor
Value
Sales Growth (5y)
13.06%
EBIT Growth (5y)
20.53%
EBIT to Interest (avg)
1.00
Debt to EBITDA (avg)
3.16
Net Debt to Equity (avg)
0.88
Sales to Capital Employed (avg)
0.55
Tax Ratio
4.72%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
7.74%
ROCE (avg)
-0.42%
ROE (avg)
1.03%
Valuation Key Factors 
Factor
Value
P/E Ratio
76
Industry P/E
7
Price to Book Value
2.63
EV to EBIT
38.65
EV to EBITDA
15.16
EV to Capital Employed
1.87
EV to Sales
3.01
PEG Ratio
0.37
Dividend Yield
NA
ROCE (Latest)
0.90%
ROE (Latest)
3.47%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
19What is working for the Company
PBT LESS OI(Q)
At Rs 10.47 cr has Grown at 5070.4% (vs previous 4Q average
PAT(Q)
At Rs 11.24 cr has Grown at 842.6% (vs previous 4Q average
OPERATING PROFIT TO INTEREST(Q)
Highest at 6.26 times
-2What is not working for the Company
DEBT-EQUITY RATIO(HY)
Highest at 0.95 times
Loading Valuation Snapshot...
Here's what is working for Dredging Corpn.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 10.47 cr has Grown at 5070.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 0.20 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 11.24 cr has Grown at 842.6% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 1.19 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 6.26 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Here's what is not working for Dredging Corpn.
Debt-Equity Ratio - Half Yearly
Highest at 0.95 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio