D.P. Wires Limited

Industrials — Metal Fabrication · NSE

₹205.35+₹4.45 (+2.22%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. 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, 6:08 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. Wires 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. Wires Limited manufactures and supplies steel wires, plastic pipes, and plastic films for oil and gas, power, environment, civil, energy, automobile, infrastructure, and other industries in India and internationally.

IndustryMetal Fabrication

SectorIndustrials

Employees48

Annual revenue₹479 Cr

How does it make money?

Turns over ₹479 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 48 employees supports ₹9.99 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin5.8%

Net margin3.7%

Revenue / employee₹9.99 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

What is its competitive advantage?Little sign of one

Returns on capital of 9.3% 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.

ROCE9.3%

ROE6.6%

Peer median ROE18.7%

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 -60% while net margin moved +8% 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-60%

Margin effect+8%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 26.6% a year
✗ Profit has declined at 24.6% a year

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

58/ 100

Fair

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

17.0x

3Y Median

16.1x

40 monthly readings · mean 15.4x · range 8.3x–23.5x

Sector Median

12.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 16.1x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 40% above the peer median of 12.2x.

vs. its own history

Fair

16.1x median over 40 months · +6%

vs. sector peers

Expensive

12.2x median of 4 peers · +40%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

17.0x

P/B

1.20x

EV/EBITDA

10.6x

PEG

0.53

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 21.4% to 6.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 29.6% to 9.3% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 57% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

A premium to the sector to defend
It trades 40% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 21.4% to 6.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 4%✓ 5.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹27 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 9.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 16.1x✓ 17.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

4 good · 6 neutral · 1 weak

Market Cap

₹318 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.0x

Fair

Fairly valued against the generic band

P/B Ratio

1.20x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹12.08

Profitable

Profitable on a per-share basis

ROE

6.6%

Weak

Weak capital efficiency

ROCE

9.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.93x

Moderate

Moderate leverage

Revenue Growth (YoY)

3.7%

Modest

Modest growth

Profit Growth (YoY)

31.9%

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

₹27 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹205.35

Operating Margin

2.8%

Weak

Thin margins leave little room for error

Net Margin

3.9%

Average

Average bottom-line conversion

Current Ratio

6.73

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.38

Defensive

Steadier than the market

52W Range Position

63%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

187.2 / 169.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

65.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,214 Cr	₹997 Cr	₹620 Cr	₹479 Cr	-26.6%
EBITDA	₹64 Cr	₹56 Cr	₹35 Cr	₹28 Cr	-24.2%
EBITDA Margin	5.2%	5.6%	5.7%	5.8%	—
PAT (Net Profit)	₹41 Cr	₹36 Cr	₹22 Cr	₹18 Cr	-24.6%
EPS	₹26.46	₹23.43	₹14.33	₹11.34	-24.6%
ROE	21.4%	16.1%	8.9%	6.6%	—
ROCE	29.6%	22.7%	12.6%	9.3%	—
Total Debt	₹2 Cr	₹1 Cr	₹28 Cr	₹2 Cr	+4.8%
Free Cash Flow	₹38 Cr	₹19 Cr	₹51 Cr	₹27 Cr	-10.9%

🔴 Revenue has shrunk at 26.6% a year over 3 years.

🔴 EBITDA has shrunk at 24.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 5.8% over 3 years.

🔴 PAT (Net Profit) has shrunk at 24.6% a year over 3 years.

🔴 EPS has shrunk at 24.6% a year over 3 years.

🔴 ROE has fallen from 21.4% to 6.6% over 3 years (-14.8 pts).

🔴 ROCE has fallen from 29.6% to 9.3% over 3 years (-20.3 pts).

🔴 Total Debt has grown at 4.8% a year over 3 years.

🔴 Free Cash Flow has shrunk at 10.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹289 Cr

Total Liabilities

₹23 Cr

Total Debt

₹2 Cr

Cash & Equivalents

₹28 Cr

Operating Cash Flow

₹28 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.5%

Corporate Actions

Ex-Dividend Date

22 Sept 2023

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

1 mixed5 general

D.P. Wires Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 05 Oct

D P Wires Share Price and Technical Setup

Kalkine India, 06 Oct

Compare LLOYDS STEEL IND. with

Equitymaster, 14 Oct

Amitabh Bachchan Sells DP Wires Stake for Rs 2.48 Crore

Rediff MoneyWiz, 24 Jun

D P Wires rises after Amitabh Bachchan trims stake via open market transaction

Business Standard, 24 Jun

DP Wires discloses voting results for 28th AGM resolutions

scanx.trade, 30 SeptResults

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

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak5.9/20

🟢Financial HealthStrong16.6/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak4.6/15

🟢ValuationAttractive10.6/15

🟡RiskModerate6.2/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation.

This thesis breaks if

✓EBITDA margin holds above 4%5.8%
✓Free cash flow remains positive₹27 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 8%9.3%
✓Valuation vs its own median of 16.1x17.0x today