D. P. Abhushan Limited

Consumer Cyclical — Luxury Goods · NSE

₹2,295.00−₹97.50 (−4.08%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently 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. P. Abhushan Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

D. P. Abhushan Limited manufactures, sells, and trades gold, diamond, platinum, silver jewellery, and other precious metals in India. It also offers bars; gold and silver coins. The company was founded in 1940 and is based in Ratlam, India.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees847

Annual revenue₹4,046 Cr

How does it make money?

Turns over ₹4,046 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 847 employees supports ₹4.78 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin7.6%

Net margin5.2%

Revenue / employee₹4.78 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 45.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 33.5% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE45.8%

ROE33.5%

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +105% while net margin moved +128% 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+105%

Margin effect+128%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.52 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

71/ 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

21.9x

3Y Median

32.6x

40 monthly readings · mean 38.7x · range 15.9x–67.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 33% below its 3y median of 32.6x. 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 68% below the peer median of 69.2x.

vs. its own history

Cheap

32.6x median over 40 months · -33%

vs. sector peers

Cheap

69.2x median of 4 peers · -68%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

21.9x

P/B

8.27x

EV/EBITDA

17.9x

PEG

0.33

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 3.9% to 7.6% over 3 years.
Return on equity is rising
ROE has improved from 25.0% to 33.5%.
Return on capital is rising
ROCE has improved from 33.9% to 45.8%.
High return on capital employed
ROCE of 45.8% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 21.9x the stock trades 33% below its own median of 32.6x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 140% 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 151% against revenue growth of 105% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 190% against revenue growth of 105% — stock may not be moving.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 140% over 3 years, from ₹126 Cr to ₹304 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 190% against revenue up 105% — stock may not be moving.
🟡Receivables growing faster than salesFinancial
Receivables up 151% against revenue up 105% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 45.8% 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 3.9% to 7.6%. 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 33% 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 68% 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?

Sales are being booked faster than collected
Receivables are up 151% against revenue up 105%. 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
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.
Several serious flags at once
4 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 20% a year✓ 27.0% CAGR
Latest reported year was 58.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹104 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 43%✓ 45.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 3 neutral · 2 weak

Market Cap

₹5,239 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.9x

Fair

Fairly valued against the generic band

P/B Ratio

8.27x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹105.01

Profitable

Profitable on a per-share basis

ROE

33.5%

Strong

Strong capital efficiency

ROCE

45.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.48x

Low

Conservative leverage

Revenue Growth (YoY)

58.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

75.5%

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

-₹104 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹2,295

Operating Margin

10.7%

Average

Average margins

Net Margin

5.5%

Average

Average bottom-line conversion

Current Ratio

2.14

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.52

Defensive

Steadier than the market

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

1917.2 / 1623.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

83.1

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,975 Cr	₹2,340 Cr	₹3,311 Cr	₹4,046 Cr	+27.0%
EBITDA	₹77 Cr	₹101 Cr	₹174 Cr	₹309 Cr	+59.3%
EBITDA Margin	3.9%	4.3%	5.3%	7.6%	—
PAT (Net Profit)	₹45 Cr	₹62 Cr	₹113 Cr	₹212 Cr	+67.2%
EPS	₹20.36	₹27.8	₹49.98	₹92.84	+65.8%
ROE	25.0%	25.9%	27.9%	33.5%	—
ROCE	33.9%	37.3%	38.8%	45.8%	—
Total Debt	₹126 Cr	₹173 Cr	₹184 Cr	₹304 Cr	+33.9%
Free Cash Flow	₹60 Cr	-₹4 Cr	-₹44 Cr	-₹104 Cr	—

🟢 Revenue has grown at 27.0% a year over 3 years.

🟢 EBITDA has grown at 59.3% a year over 3 years.

🟢 EBITDA Margin has risen from 3.9% to 7.6% over 3 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 67.2% a year over 3 years.

🟢 EPS has grown at 65.8% a year over 3 years.

🟢 ROE has risen from 25.0% to 33.5% over 3 years (+8.5 pts).

🟢 ROCE has risen from 33.9% to 45.8% over 3 years (+11.8 pts).

🔴 Total Debt has grown at 33.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹60 Cr to -₹104 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,143 Cr

Total Liabilities

₹510 Cr

Total Debt

₹304 Cr

Cash & Equivalents

₹20 Cr

Operating Cash Flow

-₹97 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.2%

Insider Holding

81.0%

Corporate Actions

Ex-Dividend Date

22 Sept 2023

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 positive5 general

D.P. Abhushan Share Price Near 52-Week High, Valuation View

Univest, 14 Oct

With EPS Growth And More, D. P. Abhushan (NSE:DPABHUSHAN) Makes An Interesting Case

Simply Wall Street, 24 Sept

D.P. Abhushan Q1 Net Profit Rises To ₹64.4 Crore; First Dahod Store Planned

Sahi, 20 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

D.P. Abhushan Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Compare with

Equitymaster, 15 Oct

D P Abhushan passes all 5 resolutions at 9th AGM with 73.12% participation

scanx.trade, 26 Sept

Watch Items

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 QualityAdequate12.4/20

🟢Financial HealthStrong13/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong11.8/15

🟡ValuationFair9.1/15

🟡RiskModerate4.5/10

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. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 20% a year27.0% CAGR
✓EBITDA margin holds above 6%7.6%
✗Free cash flow remains positive-₹104 Cr
✓Debt / EBITDA stays below 2x1.0x
✓ROCE stays above 43%45.8%