Dev Labtech Venture Limited

Consumer Cyclical — Luxury Goods · BSE

₹32.35+₹2.94 (+10.00%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:02 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Dev Labtech Venture Limited engages in the manufacturing, processing, and sale of lab-grown diamonds (LGDs) and natural diamonds in India.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees30

Annual revenue₹59 Cr

How does it make money?

Turns over ₹59 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 30 employees supports ₹1.96 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin19.1%

Net margin16.3%

Revenue / employee₹1.96 Cr

Who are its competitors?

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

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%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Some evidence

ROCE of 18.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE18.6%

ROE20.8%

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 +96% while net margin moved +379% 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+96%

Margin effect+379%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.05 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

77/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

32.0x

3Y Median

58.1x

40 monthly readings · mean 61.9x · range 34.4x–118.7x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 45% below its 3y median of 58.1x. 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 54% below the peer median of 69.2x.

vs. its own history

Cheap

58.1x median over 40 months · -45%

vs. sector peers

Cheap

69.2x median of 4 peers · -54%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

32.0x

P/B

3.01x

EV/EBITDA

13.9x

PEG

0.29

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 6.4% to 19.1% over 3 years.
Return on equity is rising
ROE has improved from 5.4% to 18.8%.
Return on capital is rising
ROCE has improved from 7.6% to 18.6%.
Valuation below its historical average
At 32.0x the stock trades 45% below its own median of 58.1x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 187% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 1629% against revenue growth of 96% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 882% against revenue growth of 96% — stock may not be moving.

Red Flags

6 items require attention · 5 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 187% over 3 years, from ₹1 Cr to ₹3 Cr.
🔴High leverageFinancial
Debt/Equity of 6.36x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 1629% against revenue up 96% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 882% against revenue up 96% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 43% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 6.4% to 19.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 45% 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 54% 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?

Leverage amplifies any setback
Debt/Equity of 6.36x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 1629% against revenue up 96%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
5 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 19% a year✓ 25.1% CAGR
Latest reported year was 258.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 19.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 18.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹154 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.0x

Fair

Fairly valued against the generic band

P/B Ratio

3.01x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.01

Profitable

Profitable on a per-share basis

ROE

20.8%

Strong

Strong capital efficiency

ROCE

18.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

6.36x

High

High leverage

Revenue Growth (YoY)

258.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

329.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹32.35

ROA

6.0%

Average

Average asset productivity

Operating Margin

8.2%

Average

Average margins

Net Margin

5.7%

Average

Average bottom-line conversion

Current Ratio

1.46

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.05

Defensive

Steadier than the market

52W Range Position

100%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

21.9 / 19.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

80.3

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹30 Cr	₹43 Cr	₹52 Cr	₹59 Cr	+25.1%
EBITDA	₹2 Cr	₹3 Cr	₹3 Cr	₹11 Cr	+80.6%
EBITDA Margin	6.4%	6.7%	5.9%	19.1%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹10 Cr	+111.0%
EPS	₹0.43	₹0.41	₹0.27	—	—
ROE	5.4%	5.2%	3.1%	18.8%	—
ROCE	7.6%	7.2%	4.6%	18.6%	—
Total Debt	₹1 Cr	₹1 Cr	₹1 Cr	₹3 Cr	+42.0%
Free Cash Flow	-₹10 Cr	-₹11 Cr	-₹14 Cr	-₹2 Cr	—

🟢 Revenue has grown at 25.1% a year over 3 years.

🟢 EBITDA has grown at 80.6% a year over 3 years.

🟢 EBITDA Margin has risen from 6.4% to 19.1% over 3 years (+12.8 pts).

🟢 PAT (Net Profit) has grown at 111.0% a year over 3 years.

🟢 ROE has risen from 5.4% to 18.8% over 3 years (+13.4 pts).

🟢 ROCE has risen from 7.6% to 18.6% over 3 years (+11.0 pts).

🔴 Total Debt has grown at 42.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹165 Cr

Total Liabilities

₹114 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.0%

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 mixed5 general

Dev Labtech Venture Share Price rise: fundamentals view

Univest, 15 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Dev Labtech Venture issues EGM notice for ₹17.81 crore warrant issue

scanx.trade, 14 Oct

Dev Labtech Venture Upper Circuit Streak: Day 2 Price and Data

Univest, 16 Oct

Dev Labtech Venture Retains 100% Wholly Owned US Subsidiary, Reversing Strike-Off Decision

Sahi, 11 Aug

52 Week High Shares BSE | 52 Week High Today | Shares Trading 52 Week High BSE

Livemint, 16 Oct

Dev Labtech Venture Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🔴Financial HealthStretched8.9/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong11.8/15

🟡ValuationFair9.5/15

🔴RiskHigh3.9/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 5 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 19% a year25.1% CAGR
✓EBITDA margin holds above 17%19.1%
✗Free cash flow remains positive-₹2 Cr
✓Debt / EBITDA stays below 2x0.3x
✓ROCE stays above 16%18.6%