Divine Power (DPEL)

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

Key Financials

Strengths

• Promoter holding of 63.20% shows strong skin in the game.
• Sales growth of 24.70% and latest quarter sales of ₹180 Cr indicate healthy demand.
• Piotroski F-Score of 7/9 suggests the company is not in immediate financial distress.
• ROCE of 14.57% reflects acceptable capital efficiency for a capital-intensive cable business.

Concerns

• P/E of 78.23 with only 5.33% profit growth and PEG of 5.21 implies severe overvaluation.
• Net margin is razor thin at roughly 2.8% (₹5 Cr profit on ₹180 Cr sales), indicating weak pricing power.
• Zero dividend yield means shareholders get no income compensation for the risk.
• FairStock Score of 14/100 flags the stock as risky; book value, ROE, and debt/equity are undisclosed, limiting deeper analysis.

AI Analysis

At first glance, Divine Power looks like a business growing revenue. Sales are up 24.70%, and the latest quarter shows ₹180 Cr in sales. But when I look for a franchise with durable economics, I want profits to follow sales. Here net profit grew only 5.33%, and the latest quarter's net profit of ₹5 Cr on ₹180 Cr sales is a hair-thin margin around 2.8%. That suggests a low-priced, low-moat business in the cable industry—what Graham would call a commodity-like operation with limited pricing power. The P/E of 78.23 and PEG ratio of 5.21 are entirely unjustified by this profit growth. Mr. Market is paying a fantastic multiple for ordinary economics. With no dividend yield and no reported book value or ROE, I have very little margin of safety. The promoter holding of 63.20% is positive, and the Piotroski F-score of 7/9 hints at decent financial health. ROCE of 14.57% is acceptable but not outstanding. But in a cyclical industry like cables, the 52-week range from ₹124 to ₹599 tells me this stock can swing violently with sentiment. I would not mistake a rising price for a rising business. At this price, I am paying 78 times earnings for low single-digit profit growth. Benjamin Graham would say price is what you pay, value is what you get. Here, value is unclear and risk is high. FairStock Score 14/100 says risky, and I agree. I want either a much lower price or much better evidence that growth is converting into shareholder earnings. Until then, this is a 'too hard' pile for me.

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