Dynamic Industries Limited

Basic Materials — Specialty Chemicals · BSE

₹115.45−₹3.60 (−3.02%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:44 pm

Understanding the Business

Company site ↗

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

What does this company do?

Dynamic Industries Limited engages in the manufacture and trade of dyes, chemicals, and pigments in India and internationally. It offers acid, direct, synthetic organic, and solvent dyes for textile, leather, and paper applications, as well as dye stuffs.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees74

Annual revenue₹71 Cr

How does it make money?

Turns over ₹71 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 74 employees supports ₹96.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹96.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 6.1% 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.

Peer median ROE22.3%

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 +57% while net margin moved +2% 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+57%

Margin effect+2%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.7% is weak

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

74/ 100

Cheap

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

19.8x

3Y Median

20.8x

40 monthly readings · mean 22.3x · range 16.0x–32.7x

Sector Median

40.4x

median of 4 sector peers

🟡Currently trading close to its 3y median of 20.8x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 51% below the peer median of 40.4x.

vs. its own history

Fair

20.8x median over 40 months · -5%

vs. sector peers

Cheap

40.4x median of 4 peers · -51%

vs. generic bands

Fair

15x–35x

EV/EBITDA

7.9x

PEG

1.17

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 6.0% to 8.7% over 3 years.
Cash generation is improving
Free cash flow is up 224% over 3 years.
Return on capital is rising
ROCE has improved from 3.4% to 6.1%.
Very low debt
Debt/Equity of 0.28x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 464% over 3 years, from ₹2 Cr to ₹14 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.0% to 8.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 51% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹4 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?

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
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

1Revenue growth stays above 12% a year✓ 16.3% CAGR
Latest reported year was -3.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 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 · 3 neutral · 4 weak

Market Cap

₹35 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.8x

Fair

Fairly valued against the generic band

P/B Ratio

0.70x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.84

Profitable

Profitable on a per-share basis

ROE

3.7%

Weak

Weak capital efficiency

ROCE

6.1%

Weak

Low return on total capital employed

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

-3.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-6.9%

Falling

Profits are shrinking

Dividend Yield

0.87%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.8%

Average

Average margins

Net Margin

2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

127.7 / 117.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

32.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹45 Cr	₹36 Cr	₹72 Cr	₹71 Cr	+16.3%
EBITDA	₹3 Cr	₹1 Cr	₹5 Cr	₹6 Cr	+31.4%
EBITDA Margin	6.0%	3.7%	7.6%	8.7%	—
PAT (Net Profit)	₹1 Cr	-₹0 Cr	₹2 Cr	₹2 Cr	+16.9%
EPS	₹3.77	₹-0.99	₹5.24	₹6.02	+16.9%
ROE	2.4%	-0.6%	3.3%	3.7%	—
ROCE	3.4%	-0.2%	5.7%	6.1%	—
Total Debt	₹2 Cr	₹15 Cr	₹17 Cr	₹14 Cr	+78.0%
Free Cash Flow	₹1 Cr	-₹13 Cr	-₹1 Cr	₹4 Cr	+47.9%

🟢 Revenue has grown at 16.3% a year over 3 years.

🟢 EBITDA has grown at 31.4% a year over 3 years.

🟢 EBITDA Margin has risen from 6.0% to 8.7% over 3 years (+2.7 pts).

🟢 PAT (Net Profit) has grown at 16.9% a year over 3 years.

🟢 EPS has grown at 16.9% a year over 3 years.

🟢 ROE has risen from 2.4% to 3.7% over 3 years (+1.2 pts).

🟢 ROCE has risen from 3.4% to 6.1% over 3 years (+2.7 pts).

🔴 Total Debt has grown at 78.0% a year over 3 years.

🟢 Free Cash Flow has grown at 47.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹77 Cr

Total Liabilities

₹27 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.7%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

11 Sept 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive1 mixed4 general

Dynamic Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 28 Aug

Dynamic Services & Security (DYNAMIC) Share Price Falls 8.50% Today

Univest, 08 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

3 Wireless Non-US Stocks to Watch Despite Industry Roadblocks

The Globe and Mail, 15 Oct

Dynamic Cables: Best Stock in Its Sector? Key Metrics

Univest, 25 Sept

Dividend stocks alert! Last chance to qualify- Kalyan Jewellers, Aarti Industries, Blue Jet, Bajaj Healthcare, others

Livemint, 11 SeptCapital return

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

Comfortable Decline: How Canada Chooses Stability Over Dynamic Prosperity | Reports & Briefings | May 25, 2026

Information Technology and Innovation Foundation, 25 May

Watch Items

Revenue growth is negative (-3.4%) 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.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

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.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑