Denta Water (DENTA)
Fast GrowerFairStock Score: 24/100 — RISKY
Score breakdown: P/E: 3/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹295.75 |
| Market Cap | ₹789.65 Cr |
| P/E Ratio | 12.97 |
| ROCE | 25.17% |
| ROE | —% |
| Dividend Yield | 0.85% |
| Profit Growth | -39.78% |
| Debt/Equity | 0.03 |
| Sales Growth | -12.67% |
| Promoter Holding | 71.91% |
| 52-Week Range | ₹222 — ₹444.5 |
| Sector | Other Utilities |
| Book Value | ₹171.81 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
Whenever I look at a business, I ask whether it earns a durable return on capital and whether the price gives me a margin of safety. Denta Water fails the first test in a convincing way. Water supply and management is an essential service, but I see no proprietary product or pricing power. ROCE is 25.17% today, but with sales growth at 4.23% and profit down 4.68%, that high return is not translating into compounding. A 10.21 P/E and 1.82 P/B look tolerable, yet book value is only ₹163.45 versus a price of ₹298.10, so I am paying twice book for a business with no growth engine. The balance sheet is clean: D/E 0.03, and promoters own 71.91%, so interests are aligned. Still, the F-Score of 4 out of 9 tells me fundamentals have weakened. The PEG of 2.41 is not in my favour, and the FairStock Score of 34/100 warns me against forced optimism. Last quarter, Denta generated ₹54 Cr in sales and ₹14 Cr in profit; these numbers show the company can make money, but a single quarter does not build a moat. I would rather miss this opportunity than buy a slow grower at a fair price while earnings shrink. Let me wait for evidence of a durable order book and margin expansion before acting.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer