D & H India (517514)

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Profit growth of 43.79% with sales growth of 12.23% shows strong earnings momentum
• PEG of 0.70 suggests the valuation is reasonable relative to growth
• Piotroski F-Score of 7/9 indicates decent financial health
• ROE of 17.22% is respectable for a small industrial business
• Stock at ₹155.75 is closer to its 52-week low than its high, offering a possible entry point if earnings hold

Concerns

• P/E of 19.57 and P/B of 3.97 leave little room for error
• Dividend yield is 0.00%, so all returns depend on capital appreciation
• Debt-to-equity and promoter holding are not disclosed, creating transparency risk
• Market cap of ₹128 Cr is small, and the stock is down sharply from its 52-week high of ₹304.80

AI Analysis

At ₹155.75, D & H India is a microcap industrial products company with a market cap of only ₹128 crore. I like small businesses that are growing profitably, and the recent numbers deserve attention. Sales are up 12.23%, while profit has jumped 43.79%. The PEG ratio of 0.70 suggests the market’s asking price is not absurd if that profit growth can continue. The Piotroski F-score of 7 out of 9 is another encouraging sign—the company’s underlying financial health appears reasonable. Return on equity of 17.22% is respectable, though return on capital employed of 13.47% is a more sober operational measure. With debt-to-equity not disclosed, I cannot confidently judge the balance sheet. Now for the caution. At ₹155.75, the stock is trading at 19.57 times earnings and 3.97 times book value. Book value is ₹39.25, so the market is paying a large premium for the franchise. There is no dividend; the investor must rely entirely on reinvestment and eventual capital appreciation. The stock is also far below its 52-week high of ₹304.80, after a fall of nearly half. In a ₹128 crore company with promoter holding not available, that kind of decline can be either an opportunity or a warning. Graham would remind me that the margin of safety comes from facts, not hopes. I would not build a big position based on one strong quarter. But with a low PEG, a healthy F-score, and a profitable small business, D & H India deserves a place on the watch list. I would wait for further proof that growth is durable and management is friendly to minority shareholders before committing serious capital.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer