Dangee Dums Limited

Consumer Cyclical — Restaurants · NSE

₹3.10+₹0.02 (+0.65%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Dangee Dums Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Dangee Dums Limited engages in the manufacturing and trading of bakery and confectionery products in India.

IndustryRestaurants

SectorConsumer Cyclical

Employees58

Annual revenue₹29 Cr

How does it make money?

Turns over ₹29 Cr a year. Of every ₹100 of sales, about ₹-5 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 58 employees supports ₹49.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin18.7%

Net margin-4.8%

Revenue / employee₹49.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 2.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE2.0%

ROE-9.7%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +13% while net margin moved +96% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+13%

Margin effect+96%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 6.0 points over the period

Quality vs. Valuation

Company Quality

31/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

39/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

3.26x

EV/EBITDA

13.0x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 12% over 3 years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 28.7% to 18.7% over 3 years.
Return on equity is falling
ROE has dropped from -3.7% to -9.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 6.2% to 2.0% — often a sign of competition or overexpansion.
Short-term liquidity is tight
Current ratio of 0.43 — near-term obligations exceed near-term assets.

Red Flags

6 items require attention · 4 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 1.58x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.3x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 10.0 points, from 28.7% to 18.7%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 0.5x to 0.3x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.43 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 28.7% to 18.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 4.2% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from -3.7% to -9.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 17%✓ 18.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 0.3x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 4.2% CAGR
Latest reported year was 12.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹48 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

3.26x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-0.09

Loss-making

Negative earnings per share — the business is losing money

ROE

-9.7%

Weak

Weak capital efficiency

ROCE

2.0%

Weak

Low return on total capital employed

Debt/Equity

1.58x

High

High leverage

Revenue Growth (YoY)

12.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-167.3%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹3.1

Operating Margin

-2.4%

Weak

Thin margins leave little room for error

Net Margin

-4.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.43

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3.0 / 2.9

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

43.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹26 Cr	₹25 Cr	₹27 Cr	₹29 Cr	+4.2%
EBITDA	₹7 Cr	₹6 Cr	₹5 Cr	₹5 Cr	-9.6%
EBITDA Margin	28.7%	23.4%	20.3%	18.7%	—
PAT (Net Profit)	-₹1 Cr	-₹1 Cr	-₹1 Cr	-₹1 Cr	—
EPS	₹-0.04	₹-0.06	₹-0.03	—	—
ROE	-3.7%	-5.4%	-3.3%	-9.7%	—
ROCE	6.2%	4.5%	3.0%	2.0%	—
Total Debt	₹26 Cr	₹21 Cr	₹18 Cr	₹23 Cr	-4.3%
Free Cash Flow	₹5 Cr	₹5 Cr	₹4 Cr	₹1 Cr	-46.4%

🟢 Revenue has grown at 4.2% a year over 3 years.

🔴 EBITDA has shrunk at 9.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 28.7% to 18.7% over 3 years (-10.0 pts).

🔴 ROE has fallen from -3.7% to -9.7% over 3 years (-6.0 pts).

🔴 ROCE has fallen from 6.2% to 2.0% over 3 years (-4.2 pts).

🟢 Total Debt has shrunk at 4.3% a year over 3 years.

🔴 Free Cash Flow has shrunk at 46.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹40 Cr

Total Liabilities

₹26 Cr

Total Debt

₹23 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹3 Cr

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

With Dangee Dums Up 19%, Insider Buyers Count Their Returns

Simply Wall Street, 27 Sept

Dangee Dums Share Price Forecast: 3 Year Outlook to 2030

Univest, 16 Jul

Dangee Dums Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Volume Gainers, September 24, 2026 at 12:00 PM IST

HDFC Sky, 24 Sept

The Dangee Dums Bull Case

Univest, 09 Sept

VADILENT Stock Price and Chart — NSE:VADILENT

TradingView, 18 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak6.2/20

🔴Financial HealthStretched7.2/20

🔴GrowthWeak7.6/20

🔴ProfitabilityWeak2.5/15

🔴ValuationDemanding5.1/15

🔴RiskHigh3.9/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 17%18.7%
✗Debt / EBITDA falls below 3x4.2x
✗Interest cover stays above 3x0.3x
✓Revenue growth stays above 4% a year4.2% CAGR
✓Free cash flow remains positive₹1 Cr