Divyadhan Recy. (DIVYADHAN)

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

Key Financials

Strengths

• Promoter holding is high at 69.94%, aligning owner interest with minority shareholders if managed prudently.
• Sales growth of 14.99% shows some demand traction in the business.
• ROCE of 9.07% is positive, indicating capital employed is generating some return.
• Latest quarter sales of ₹36 Cr are significant relative to the ₹31 Cr market cap, giving the company a sizeable revenue base if margins recover.

Concerns

• P/E of 447.57 with profit growth of -103.52% points to nearly vanished earnings.
• Latest quarter net profit of ₹-0 Cr and zero dividend mean there is no current return for shareholders.
• Piotroski F-Score of 4/9 suggests weak financial health.
• Lack of book value, ROE, and debt-equity data prevents any credible margin-of-safety calculation; PEG of 29.86 makes the valuation difficult to justify.

AI Analysis

At ₹39.45, Divyadhan Recy has a market cap of just ₹31 Cr. My first rule is never lose money, so a P/E of 447.57 immediately puts me on guard. The company earned almost nothing—profit growth is -103.52%, and the latest quarter shows net profit of ₹-0 Cr. That is not an earnings power story; it is a story of a business whose margins have collapsed. Sales are growing 14.99%, so there is revenue momentum, but growth without profit is a treadmill, not an investment. ROCE of 9.07% is modest and provides little cushion. With the Piotroski F-Score at 4/9, the financial health is weak. The promoter holding of 69.94% is high, which can be good if they are stewards, but it also means minority shareholders have limited influence. There is no dividend, no book value, no ROE, no debt-equity data available—so I cannot compute a Graham intrinsic value or establish a margin of safety. A PEG of 29.86 confirms that the market price is far ahead of any reasonable near-term earnings growth. In Graham's language, price is what you pay, value is what you get. Here, I cannot see what I am getting. The 52-week range of ₹18.25 to ₹58.10 shows the stock has been speculative. This looks like a possible turnaround situation—sales are holding up but profitability has collapsed. I would not buy today; I would wait for evidence of sustained margin recovery, positive net profit, and better disclosure before even putting it on the watch list. In the meantime, this is a pass.

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