D.P. Abhushan (DPABHUSHAN)

FairStock Score: 70/100 — STEADY

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

Key Financials

Strengths

• ROE of 55.25% and ROCE of 33.64% indicate exceptional capital efficiency.
• Debt/Equity of 0.45 shows the high returns are not built on excessive leverage.
• Profit growth of 96.44% with P/E of 14.53 gives a PEG of 0.27, attractive if growth sustains.
• Piotroski F-Score of 7/9 and promoter holding of 74.88% suggest alignment and earnings quality.
• Latest quarter net profit of ₹73 Cr on sales of ₹1,222 Cr points to strong current momentum.

Concerns

• P/B of 7.50 leaves limited asset-based margin of safety.
• Zero dividend yield means no income cushion while waiting for growth.
• Sales growth of just 12.75% versus profit growth of 96.44% raises doubts about sustainability.
• Stock is down from its 52-week high of ₹1,719.90, indicating possible de-rating or demand pressure.

AI Analysis

Let me look at D.P. Abhushan the way I always do: what does the business earn on capital, and what am I paying for that earning power? The numbers are striking. Return on equity is 55.25% and ROCE is 33.64%, with debt/equity of just 0.45. That is not a leveraged house of cards; that is a high-return franchise. The Piotroski score of 7 out of 9 also suggests the reported earnings quality is respectable. Promoters own 74.88%, so their money is beside mine. At ₹1,138, the P/E is 14.53, and with 96.44% profit growth, the PEG ratio is only 0.27. That looks cheap if the growth is durable. But Graham would warn me: a price-to-book of 7.50 is not a margin of safety. I am paying for future compounding, not assets. Zero dividend yield means no cash return while I wait. And I cannot ignore the mismatch: sales grew only 12.75% while profit jumped 96.44%. That kind of divergence is usually margin expansion or operating leverage, which can reverse. The latest quarter shows sales of ₹1,222 Cr and net profit of ₹73 Cr, which annualises to roughly ₹292 Cr, far above the trailing profit implied by the current P/E. That tells me the market is already pricing in momentum. The stock has fallen from ₹1,719.90 to ₹1,138.10, giving some cushion, but I would not call it deeply undervalued. This is a fast grower with excellent returns and reasonable leverage, but I would want several more quarters of proof before treating 96% profit growth as the new normal.

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