De Nora India Limited

Industrials — Electrical Equipment & Parts · NSE

₹706.80+₹9.70 (+1.39%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 De Nora India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

De Nora India Limited manufactures, sells, and services electrolytic products in India and internationally.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees45

Annual revenue₹122 Cr

How does it make money?

Turns over ₹122 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 45 employees supports ₹2.70 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin2.7%

Net margin7.5%

Revenue / employee₹2.70 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?Little sign of one

Returns on capital of 4.2% 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.

ROCE4.2%

ROE7.0%

Peer median ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +68% while net margin moved -73% 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+68%

Margin effect-73%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 4.2% is below 10% — capital is not working hard
✗ ROCE has fallen by 22.4 points — returns are eroding
✗ EBITDA margin of 2.7% is thin — little cushion if costs rise
• Net margin of 10.6% is reasonable
• Revenue has compounded at 18.8% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

67/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

30.8x

3Y Median

43.2x

40 monthly readings · mean 98.3x · range 19.2x–284.1x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 29% below its 3y median of 43.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 65% below the peer median of 88.8x.

vs. its own history

Cheap

43.2x median over 40 months · -29%

vs. sector peers

Cheap

88.8x median of 3 peers · -65%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

30.8x

P/B

2.90x

EV/EBITDA

107.9x

PEG

—

Dividend Yield

0.57%

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 30.8x the stock trades 29% below its own median of 43.2x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 36.8% to 2.7% over 3 years.
Return on equity is falling
ROE has dropped from 19.9% to 7.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 26.6% to 4.2% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 34.1 points, from 36.8% to 2.7%.
🟡Profit is decliningFinancial
Net profit is down 55% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 29% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 65% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 36.8% to 2.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 19.9% to 7.0%. 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.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

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

1Revenue growth stays above 14% a year✓ 18.8% CAGR
Latest reported year was -16.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 2.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹8 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 4.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 43.2x✓ 30.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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

3 good · 5 neutral · 3 weak

Market Cap

₹375 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.8x

Fair

Fairly valued against the generic band

P/B Ratio

2.90x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹22.92

Profitable

Profitable on a per-share basis

ROE

7.0%

Weak

Weak capital efficiency

ROCE

4.2%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-16.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

96.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.57%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹8 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹706.8

Operating Margin

15.8%

Good

Healthy core-business profitability

Net Margin

10.6%

Good

Strong bottom-line conversion

Current Ratio

4.02

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.17

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

739.2 / 792.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

13.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹73 Cr	₹74 Cr	₹69 Cr	₹122 Cr	+18.8%
EBITDA	₹27 Cr	₹19 Cr	-₹5 Cr	₹3 Cr	-50.1%
EBITDA Margin	36.8%	25.5%	-7.7%	2.7%	—
PAT (Net Profit)	₹20 Cr	₹19 Cr	₹2 Cr	₹9 Cr	-23.6%
EPS	₹38.19	₹35.8	₹3.19	₹17.06	-23.6%
ROE	19.9%	15.9%	1.4%	7.0%	—
ROCE	26.6%	17.5%	-2.3%	4.2%	—
Free Cash Flow	₹11 Cr	₹9 Cr	-₹0 Cr	₹8 Cr	-8.3%

🟢 Revenue has grown at 18.8% a year over 3 years.

🔴 EBITDA has shrunk at 50.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 36.8% to 2.7% over 3 years (-34.1 pts).

🔴 PAT (Net Profit) has shrunk at 23.6% a year over 3 years.

🔴 EPS has shrunk at 23.6% a year over 3 years.

🔴 ROE has fallen from 19.9% to 7.0% over 3 years (-12.9 pts).

🔴 ROCE has fallen from 26.6% to 4.2% over 3 years (-22.4 pts).

🔴 Free Cash Flow has shrunk at 8.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹160 Cr

Total Liabilities

₹30 Cr

Total Debt

—

Cash & Equivalents

₹17 Cr

Operating Cash Flow

₹12 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.8%

Insider Holding

58.9%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

16 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

2 positive3 mixed1 general

De Nora India (NSE:DENORA): What Does the Q2 FY27 Share Capital Audit Show?

Kalkine India, 13 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Is It Smart To Buy De Nora India Limited (NSE:DENORA) Before It Goes Ex-Dividend?

Simply Wall Street, 12 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Why Is De Nora India Share Price Falling Key Reasons 2026

Univest, 22 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

De Nora India FY26: Net Profit Surges to ₹905.54 Lakhs, Board Recommends 40% Dividend

scanx.trade, 05 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

De Nora India Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

DE Nora India reports standalone net loss of Rs 0.64 crore in the March 2026 quarter

Business Standard, 05 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Revenue growth is negative (-16.0%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong17.3/20

🔴GrowthWeak8.9/20

🟡ProfitabilityModerate6.9/15

🟡ValuationFair9.5/15

🔴RiskHigh4.4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 14% a year18.8% CAGR
✓EBITDA margin holds above 1%2.7%
✓Free cash flow remains positive₹8 Cr
✗ROCE stays above 8%4.2%
✓Valuation vs its own median of 43.2x30.8x today