DEE Development (DEEDEV)
Fast GrowerFairStock Score: 52/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹631.95 |
| Market Cap | ₹4,754.76 Cr |
| P/E Ratio | 54.67 |
| ROCE | 9.39% |
| ROE | 8.09% |
| Dividend Yield | 0% |
| Profit Growth | 47.4% |
| Debt/Equity | 0.87 |
| Sales Growth | 38.8% |
| Promoter Holding | 70.18% |
| 52-Week Range | ₹183 — ₹760 |
| Sector | Industrial Manufacturing |
| Book Value | ₹127.16 |
Strengths
- Sales growth of 76.96% and profit growth of 262.27% show strong positive momentum
- Piotroski F-Score of 7/9 indicates solid financial health
- Promoter holding of 70.18% aligns management interests with minority shareholders
- Debt/Equity of 0.70 is manageable for an industrial products company
- PEG ratio of 0.14 suggests near-term growth is not fully priced in
Concerns
- ROE of 8.09% and ROCE of 9.39% are mediocre, implying weak economic moat and capital efficiency
- P/E of 24.21 and P/B of 3.81 look rich given the modest returns on capital
- Zero dividend yield means shareholders rely entirely on uncertain future appreciation
- Latest quarter annualized net profit of roughly ₹76 Cr does not comfortably support a ₹2,039 Cr market cap
AI Analysis
At ₹431.85, DEE Development wears the mask of a fast grower, but I must look beyond the headline. Sales grew 76.96% and profit jumped 262.27%, and a PEG of 0.14 screams cheap if that growth is durable. Yet Graham taught me to test quality first, and here the moat is not obvious. Return on equity is only 8.09%, and ROCE 9.39%—hardly the kind of economic engine that justifies a P/E of 24.21 or a P/B of 3.81 against book value of ₹113.32. The balance sheet is not frightening; debt/equity of 0.70 is manageable, and a Piotroski score of 7/9 suggests the company is not cooking the books. But no dividend means the shareholder must be compensated through future growth and reinvestment. Latest quarter sales of ₹287 Cr and net profit of ₹19 Cr, annualized, still leave the stock priced for perfection. The 52-week range of ₹183-₹760 shows how volatile and momentum-driven this can be. Promoter holding of 70.18% is a positive for alignment, but at this valuation I need evidence that the 76.96% growth is not a one-time order bump or cyclical peak. If it sustains, the stock is a compounder; if not, the current price leaves little margin of safety. I would wait for a better price or proof of improving returns on capital before putting my money to work.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer