D & H India Limited

Industrials — Tools & Accessories · BSE

₹190.90+₹5.90 (+3.19%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

D & H India Limited engages in manufacturing of welding electrodes in India. It offers SMAW/MMAW consumables, tig and mig wires, flux cored wires, submerged arc welding fluxes and wires, and low heat input/repair and maintenance welding electrode.

IndustryTools & Accessories

SectorIndustrials

Employees127

Annual revenue₹253 Cr

How does it make money?

Turns over ₹253 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 127 employees supports ₹1.99 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.99 Cr

Who are its competitors?

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

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +82% while net margin moved +9% 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+82%

Margin effect+9%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

• ROE of 10.8% is moderate

Quality vs. Valuation

Company Quality

65/ 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

22.1x

3Y Median

28.8x

40 monthly readings · mean 35.8x · range 12.5x–82.2x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 23% below its 3y median of 28.8x. 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 75% below the peer median of 88.8x.

vs. its own history

Cheap

28.8x median over 40 months · -23%

vs. sector peers

Cheap

88.8x median of 3 peers · -75%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.6x

PEG

0.86

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 64% over 3 years, from ₹28 Cr to ₹47 Cr.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 22% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 23% 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 75% 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?

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 17% a year✓ 22.1% CAGR
Latest reported year was 24.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

9 / 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

6 good · 5 neutral · 0 weak

Market Cap

₹195 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.1x

Fair

Fairly valued against the generic band

P/B Ratio

2.23x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.65

Profitable

Profitable on a per-share basis

ROE

10.8%

Moderate

Moderate capital efficiency

ROCE

16.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.60x

Low

Conservative leverage

Revenue Growth (YoY)

24.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

10.9%

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

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

4.3%

Weak

Thin margins leave little room for error

Net Margin

3.4%

Average

Average bottom-line conversion

Current Ratio

1.95

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-1.34

Defensive

Steadier than the market

52W Range Position

38%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

194.4 / 182.4

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹139 Cr	₹158 Cr	₹209 Cr	₹253 Cr	+22.1%
EBITDA	₹9 Cr	₹10 Cr	₹15 Cr	₹20 Cr	+28.1%
EBITDA Margin	6.8%	6.1%	7.4%	7.8%	—
PAT (Net Profit)	₹4 Cr	₹3 Cr	₹5 Cr	₹8 Cr	+25.7%
EPS	₹5.28	₹3.09	₹5.85	₹9.95	+23.5%
ROE	11.2%	6.5%	11.0%	10.8%	—
ROCE	16.2%	13.2%	17.1%	16.2%	—
Total Debt	₹28 Cr	₹38 Cr	₹53 Cr	₹47 Cr	+18.0%
Free Cash Flow	-₹0 Cr	-₹14 Cr	-₹16 Cr	₹11 Cr	—

🟢 Revenue has grown at 22.1% a year over 3 years.

🟢 EBITDA has grown at 28.1% a year over 3 years.

🟢 EBITDA Margin has risen from 6.8% to 7.8% over 3 years (+1.0 pts).

🟢 PAT (Net Profit) has grown at 25.7% a year over 3 years.

🟢 EPS has grown at 23.5% a year over 3 years.

🟡 ROE has held roughly flat at 10.8% over 3 years.

🟡 ROCE has held roughly flat at 16.2% over 3 years.

🔴 Total Debt has grown at 18.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹151 Cr

Total Liabilities

₹73 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

₹22 Cr

Capex

-₹12 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.8%

Corporate Actions

Ex-Dividend Date

22 Sept 2015

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

6 general

D&H India withdraws ₹32.57 crore preferential warrant issue

scanx.trade, 15 Oct

D&H India Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 01 Oct

D&H India Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Jio eyes bigger slice of $1.4 trillion digital economy, commanding over 60% of India’s wireless data traffic

Deccan Herald, 15 Oct

D&H India Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

D and H Rights Issue 2026 Date, Price, Allotment, Ratio

IPO Watch, 28 Jan

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality

WeakProfitability · Risk

Points for each in the Score ↑

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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑