Diamond Power Infrastructure Limited

Industrials — Specialty Industrial Machinery · NSE

₹361.50−₹12.25 (−3.28%)

DalalBaazaar Score

27 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with both sales and profits growing well. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 Diamond Power Infrastructure Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Diamond Power Infrastructure Limited engages in the manufacturing and sale of cables and conductors in India.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Annual revenue₹1,874 Cr

How does it make money?

Turns over ₹1,874 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation.

EBITDA margin12.2%

Net margin8.4%

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., 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%

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?Little sign of one

Returns on capital of 10.5% 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.

ROCE10.5%

Peer median ROE17.1%

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 +13322% while net margin moved -103% 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+13322%

Margin effect-103%

DalalBaazaar Score

27/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

29/ 100

Weak

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

Valuation

30/ 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.

Historical Valuation

Current P/E

96.9x

2Y Median

279.8x

28 monthly readings · mean 299.7x · range 115.8x–529.0x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 65% below its 2y median of 279.8x. 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 46% above the peer median of 66.2x.

vs. its own history

Cheap

279.8x median over 28 months · -65%

vs. sector peers

Expensive

66.2x median of 4 peers · +46%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

P/E (Trailing)

96.9x

P/B

—

EV/EBITDA

105.2x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -167.8% to 12.2% over 3 years.
Valuation below its historical average
At 96.9x the stock trades 65% below its own median of 279.8x.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Negative shareholders' equity
Liabilities exceed assets — this is a solvency question that sits above every other consideration here.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹162 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -167.8% to 12.2%. 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 65% 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.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 11.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 46% above the peer median. That premium needs a reason that persists, or it closes.
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
Small 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 309% a year✓ 412.0% CAGR
Latest reported year was 127.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 11.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹162 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 4x✓ 5.6x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ 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 · 4 neutral · 4 weak

Market Cap

₹21,620 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

96.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹3.73

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

10.5%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

127.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

208.3%

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

-₹162 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹361.5

Operating Margin

9.5%

Average

Average margins

Net Margin

8.7%

Average

Average bottom-line conversion

Current Ratio

2.04

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.83

Market-like

Moves roughly in line with the market

52W Range Position

85%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

365.5 / 358.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14 Cr	₹335 Cr	₹1,108 Cr	₹1,874 Cr	+412.0%
EBITDA	-₹23 Cr	₹43 Cr	₹67 Cr	₹229 Cr	—
EBITDA Margin	-167.8%	13.0%	6.1%	12.2%	—
PAT (Net Profit)	-₹43 Cr	₹17 Cr	₹34 Cr	₹158 Cr	—
EPS	₹-0.81	₹0.32	₹0.65	₹3	—
ROCE	-3.1%	1.8%	3.5%	10.5%	—
Total Debt	₹2,343 Cr	₹2,355 Cr	₹463 Cr	₹2,537 Cr	+2.7%
Free Cash Flow	₹440 Cr	₹10 Cr	-₹51 Cr	-₹162 Cr	—

🟢 Revenue has grown at 412.0% a year over 3 years.

🟢 EBITDA has turned positive, from -₹23 Cr to ₹229 Cr.

🟢 EBITDA Margin has risen from -167.8% to 12.2% over 3 years (+180.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹43 Cr to ₹158 Cr.

🟢 EPS has turned positive, from ₹-0.81 to ₹3.

🟢 ROCE has risen from -3.1% to 10.5% over 3 years (+13.6 pts).

🔴 Total Debt has grown at 2.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹440 Cr to -₹162 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,404 Cr

Total Liabilities

₹3,008 Cr

Total Debt

₹2,537 Cr

Cash & Equivalents

₹36 Cr

Operating Cash Flow

-₹80 Cr

Capex

-₹81 Cr

Shareholding (proxy)

Institutional Holding

10.9%

Insider Holding

77.7%

Corporate Actions

Ex-Dividend Date

26 Sept 2013

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive2 mixed3 general

Diamond Power Infrastructure closes ₹1,614 Cr QIP at ₹227 per share

scanx.trade, 18 Oct

Diamond Power Infrastructure Share Price rises 2.08% today

Univest, 12 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.

DIACABS Forecast — Price Target — Prediction for 2027

TradingView, 10 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Diamond Power Infra | Stock Share Price Live

MarketSmith India, 05 May

Diamond Power Infrastructure shares rally 10% to hit upper circuit as firm bags order worth ₹436 crore

Upstox, 05 JulOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Diamond Power Infra zooms 100% in 6 months; hits new high on huge volumes

Business Standard, 21 Jul

Watch Items

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.

DalalBaazaar Thesis

🔴Business QualityWeak6/20

🔴Financial HealthStretched1/20

🟢GrowthStrong13/20

🔴ProfitabilityWeak1.5/15

🔴ValuationDemanding4.5/15

🔴RiskHigh0.5/10

Avoid until solvency is resolved

Diamond Power Infrastructure Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 309% a year412.0% CAGR
✓EBITDA margin holds above 10%12.2%
✗Debt / EBITDA falls below 3x11.1x
✗Free cash flow remains positive-₹162 Cr
✓Interest cover stays above 4x5.6x