D-Link (India) Limited

Technology — Communication Equipment · NSE

₹422.00+₹1.85 (+0.44%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, 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, 6:10 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 D-Link (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-Link (India) Limited engages in the marketing and distribution of D-Link branded networking products for small and medium businesses, residential users, and service providers in India and internationally.

IndustryCommunication Equipment

SectorTechnology

Employees249

Annual revenue₹1,566 Cr

How does it make money?

Turns over ₹1,566 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 249 employees supports ₹6.29 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin8.7%

Net margin6.6%

Revenue / employee₹6.29 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 27.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 20.6% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE27.4%

ROE20.6%

Peer median ROE32.0%

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 +33% 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+33%

Margin effect-9%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 9.9% is steady
✗ Profit CAGR of only 6.4%

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

62/ 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

14.0x

3Y Median

15.4x

40 monthly readings · mean 16.3x · range 11.2x–24.7x

Sector Median

16.5x

median of 4 sector peers

🟡Currently trading close to its 3y median of 15.4x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 16% below the peer median of 16.5x.

vs. its own history

Fair

15.4x median over 40 months · -9%

vs. sector peers

Fair

16.5x median of 4 peers · -16%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.0x

P/B

2.96x

EV/EBITDA

10.9x

PEG

2.18

Dividend Yield

6.16%

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 161% over 3 years.
High return on capital employed
ROCE of 27.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 47% over 3 years — worth checking what it funded.
Return on capital is falling
ROCE has declined from 30.4% to 27.4% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.93x — earnings must service borrowings before shareholders see anything.
🟡Debt is increasingFinancial
Total debt is up 47% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.4% 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.
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 2.93x. Interest is payable whether or not the business has a good year.
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

1EBITDA margin holds above 7%✓ 8.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.9% CAGR
Latest reported year was 30.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹13 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 27.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

8 good · 2 neutral · 1 weak

Market Cap

₹1,498 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.0x

Cheap

Cheap against the generic band

P/B Ratio

2.96x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹30.22

Profitable

Profitable on a per-share basis

ROE

20.6%

Strong

Strong capital efficiency

ROCE

27.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.93x

High

High leverage

Revenue Growth (YoY)

30.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

13.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

6.16%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹13 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹422

Operating Margin

7.2%

Average

Average margins

Net Margin

6.4%

Average

Average bottom-line conversion

Current Ratio

2.56

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

417.3 / 428.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,180 Cr	₹1,235 Cr	₹1,384 Cr	₹1,566 Cr	+9.9%
EBITDA	₹119 Cr	₹123 Cr	₹137 Cr	₹136 Cr	+4.8%
EBITDA Margin	10.0%	9.9%	9.9%	8.7%	—
PAT (Net Profit)	₹86 Cr	₹93 Cr	₹104 Cr	₹104 Cr	+6.4%
EPS	₹24.32	₹26.09	₹29.37	₹29.31	+6.4%
ROE	22.8%	21.3%	21.9%	20.6%	—
ROCE	30.4%	28.6%	29.4%	27.4%	—
Total Debt	₹10 Cr	₹8 Cr	₹4 Cr	₹15 Cr	+13.7%
Free Cash Flow	₹5 Cr	₹120 Cr	₹90 Cr	₹13 Cr	+37.6%

🟢 Revenue has grown at 9.9% a year over 3 years.

🟢 EBITDA has grown at 4.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 10.0% to 8.7% over 3 years (-1.3 pts).

🟢 PAT (Net Profit) has grown at 6.4% a year over 3 years.

🟢 EPS has grown at 6.4% a year over 3 years.

🔴 ROE has fallen from 22.8% to 20.6% over 3 years (-2.2 pts).

🔴 ROCE has fallen from 30.4% to 27.4% over 3 years (-3.0 pts).

🔴 Total Debt has grown at 13.7% a year over 3 years.

🟢 Free Cash Flow has grown at 37.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹811 Cr

Total Liabilities

₹306 Cr

Total Debt

₹15 Cr

Cash & Equivalents

₹31 Cr

Operating Cash Flow

₹15 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.6%

Insider Holding

58.2%

Corporate Actions

Dividend Rate

₹26

Ex-Dividend Date

10 Jul 2026

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

2 positive2 mixed2 general

The Market Doesn't Like What It Sees From D-Link (India) Limited's (NSE:DLINKINDIA) Earnings Yet

Simply Wall Street, 01 FebResults

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

D-Link India Reports Q1 Net Profit Of ₹27.4 Crore, Up From ₹24 Crore Last Year

Sahi, 01 AugResults

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

D-Link (India) Share Price Forecast: 3 Year Outlook to 2030

Univest, 16 Jul

D-Link India Ltd is Rated Sell by MarketsMOJO

MarketsMojo, 15 Oct

D-Link (India) FY26 Results: Revenue at ₹1,55,901.66 Lakhs; Board Recommends ₹27.50/Share Dividend

scanx.trade, 09 MayCapital return

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

Highest-Ever Dividend: This IT Networking Stock Declares Record Rs 27.50 Dividend; Check Record Date

Dalal Street Investment Journal, 08 JulCapital return

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

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate11.1/20

🟢Financial HealthStrong13.9/20

🟡GrowthModest10.4/20

🟢ProfitabilityStrong11.5/15

🟢ValuationAttractive10.7/15

🟡RiskModerate5.3/10

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

✓EBITDA margin holds above 7%8.7%
✓Revenue growth stays above 7% a year9.9% CAGR
✓Free cash flow remains positive₹13 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 24%27.4%