DRS Dilip Roadlines Limited

Sector n/a · NSE

₹117.00−₹3.00 (−2.50%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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

The 60-second version of DRS Dilip Roadlines Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

How does it make money?

Turns over ₹182 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation.

EBITDA margin5.2%

Net margin1.6%

What is its competitive advantage?Some evidence

ROCE of 15.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.0%

ROE10.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 2 years revenue moved -5% while net margin moved -32% 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-5%

Margin effect-32%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.4% a year
✗ Profit has declined at 19.6% a year
✗ Profit fell 38.3% in the latest year

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

35/ 100

Expensive

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

19.0x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 64% over 2 years.
Cash generation is improving
Free cash flow is up 69% over 2 years.
Return on capital is rising
ROCE has improved from 12.0% to 15.0%.
Very low debt
Debt/Equity of 0.23x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention1

Short-term liquidity is tight
Current ratio of 0.44 — near-term obligations exceed near-term assets.

Red Flags

2 items require attention · 2 watch

🟡Profit is decliningFinancial
Net profit is down 35% over 2 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.44 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 64% over 2 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹13 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

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 3%✓ 5.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹13 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 12%✓ 15.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹176 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

10.7%

Moderate

Moderate capital efficiency

ROCE

15.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

-3.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-38.3%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹13 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹117

Gross Margin

16.1%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.44

Tight

Tight short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

104.6 / 106.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (3-Year)

Metric	FY22	FY23	FY24	2Y CAGR
Revenue	₹191 Cr	₹189 Cr	₹182 Cr	-2.4%
EBITDA	₹12 Cr	₹9 Cr	₹10 Cr	-12.2%
EBITDA Margin	6.5%	5.0%	5.2%	—
PAT (Net Profit)	₹5 Cr	₹5 Cr	₹3 Cr	-19.6%
EPS	₹3.08	₹3.23	—	—
ROE	8.9%	19.5%	10.7%	—
ROCE	12.0%	23.6%	15.0%	—
Total Debt	₹18 Cr	₹6 Cr	₹6 Cr	-40.3%
Free Cash Flow	₹8 Cr	₹6 Cr	₹13 Cr	+29.9%

🔴 Revenue has shrunk at 2.4% a year over 2 years.

🔴 EBITDA has shrunk at 12.2% a year over 2 years.

🔴 EBITDA Margin has fallen from 6.5% to 5.2% over 2 years (-1.2 pts).

🔴 PAT (Net Profit) has shrunk at 19.6% a year over 2 years.

🟢 ROE has risen from 8.9% to 10.7% over 2 years (+1.8 pts).

🟢 ROCE has risen from 12.0% to 15.0% over 2 years (+3.0 pts).

🟢 Total Debt has shrunk at 40.3% a year over 2 years.

🟢 Free Cash Flow has grown at 29.9% a year over 2 years.

Balance Sheet & Cash Flow — FY2024

Total Assets

₹70 Cr

Total Liabilities

₹42 Cr

Total Debt

₹6 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹14 Cr

Capex

-₹1 Cr

Recent News

6 general

DRS Dilip Roadlines Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 11 Sept

DRS Dilip Roadlines Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

DRS Dilip Roadlines Limited (DRSDILIP) Leadership & Management Team Analysis

Simply Wall Street, 09 Aug

Packers and movers directed to pay ₹4 lakh for goods damaged in transit

The Hindu, 17 Aug

GICL Stock Price and Chart — NSE:GICL

TradingView, 22 Dec

Beware of frauds, deal with only original Agarwal Packers and Movers

The Times of India, 29 Jan

Watch Items

Revenue growth is negative (-3.8%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate11.5/20

🟢Financial HealthStrong15.1/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak6.5/15

🟡ValuationFair7.5/15

🟡RiskModerate5/10

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.

This thesis breaks if

✓EBITDA margin holds above 3%5.2%
✓Free cash flow remains positive₹13 Cr
✓Debt / EBITDA stays below 2x0.7x
✓ROCE stays above 12%15.0%