Dynemic Products Limited

Basic Materials — Specialty Chemicals · NSE

₹250.00+₹10.98 (+4.59%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

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

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Dynemic Products Limited, together with its subsidiaries, engages in the manufacture and sale of dyes and dye intermediates in India.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees464

Annual revenue₹372 Cr

How does it make money?

Turns over ₹372 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 464 employees supports ₹80.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹80.1 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 12.6% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +29% while net margin moved -627% 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+29%

Margin effect-627%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.11 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

77/ 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

15.3x

2Y Median

28.3x

28 monthly readings · mean 59.7x · range 13.9x–144.2x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 46% below its 2y median of 28.3x. 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 62% below the peer median of 40.4x.

vs. its own history

Cheap

28.3x median over 28 months · -46%

vs. sector peers

Cheap

40.4x median of 4 peers · -62%

vs. generic bands

Fair

15x–35x

EV/EBITDA

7.6x

PEG

1.91

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 8.1% to 13.5% over 3 years.
Debt is being paid down
Total debt is down 51% over 3 years.
Cash generation is improving
Free cash flow is up 28% over 3 years.
Return on equity is rising
ROE has improved from -1.6% to 8.1%.
Return on capital is rising
ROCE has improved from 2.5% to 12.6%.
Very low debt
Debt/Equity of 0.30x 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 watch

🟡Receivables growing faster than salesFinancial
Receivables up 51% against revenue up 29% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.1% to 13.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 51% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 46% 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 62% 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 ₹30 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?

Sales are being booked faster than collected
Receivables are up 51% against revenue up 29%. 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
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 11%✓ 13.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 8.8% CAGR
Latest reported year was -8.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹30 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 12.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 6 neutral · 1 weak

Market Cap

₹311 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.3x

Fair

Fairly valued against the generic band

P/B Ratio

1.27x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹16.35

Profitable

Profitable on a per-share basis

ROE

8.1%

Moderate

Moderate capital efficiency

ROCE

12.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

-8.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

8.0%

Modest

Slow profit growth

Dividend Yield

0.60%

Modest

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

Free Cash Flow

₹30 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

9.4%

Average

Average margins

Net Margin

5.5%

Average

Average bottom-line conversion

Current Ratio

1.14

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.11

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

230.0 / 234.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

67.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹289 Cr	₹280 Cr	₹361 Cr	₹372 Cr	+8.8%
EBITDA	₹23 Cr	₹33 Cr	₹45 Cr	₹50 Cr	+28.8%
EBITDA Margin	8.1%	11.7%	12.6%	13.5%	—
PAT (Net Profit)	-₹3 Cr	₹4 Cr	₹15 Cr	₹20 Cr	—
EPS	₹-2.65	₹3.05	₹12.46	₹16.04	—
ROE	-1.6%	1.8%	6.7%	8.1%	—
ROCE	2.5%	5.5%	11.6%	12.6%	—
Total Debt	₹148 Cr	₹115 Cr	₹96 Cr	₹73 Cr	-21.1%
Free Cash Flow	₹24 Cr	₹27 Cr	₹24 Cr	₹30 Cr	+8.5%

🟢 Revenue has grown at 8.8% a year over 3 years.

🟢 EBITDA has grown at 28.8% a year over 3 years.

🟢 EBITDA Margin has risen from 8.1% to 13.5% over 3 years (+5.3 pts).

🟢 PAT (Net Profit) has turned positive, from -₹3 Cr to ₹20 Cr.

🟢 EPS has turned positive, from ₹-2.65 to ₹16.04.

🟢 ROE has risen from -1.6% to 8.1% over 3 years (+9.7 pts).

🟢 ROCE has risen from 2.5% to 12.6% over 3 years (+10.0 pts).

🟢 Total Debt has shrunk at 21.1% a year over 3 years.

🟢 Free Cash Flow has grown at 8.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹413 Cr

Total Liabilities

₹167 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹34 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

38.4%

Corporate Actions

Dividend Rate

₹1.5

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 mixed1 negative4 general

Dynemic Products: Best Stock in Its Sector? Key Metrics

Univest, 25 Sept

Dynemic Products (NSE: DYNPRO): 5 Signals to Track

Kalkine India, 10 Sept

Dynemic Products CFO Ankit Shah resigns citing personal reasons

scanx.trade, 30 SeptManagement

🔴Potentially negativeA senior departure, and an auditor's resignation especially, is worth understanding before anything else in this report.

Dynemic Products Share Price: Good Buy After Q1 FY27 Results?

Univest, 10 SeptResults

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

Dynemic Products vs Nifty 50: Share Price Performance Compared

Univest, 17 Sept

Dynemic Products Ltd. Peer Comparison – Compare with Others

Value Research, 09 Sept

Watch Items

Revenue growth is negative (-8.5%) 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 · Valuation

MiddlingBusiness Quality · Growth · Profitability

WeakRisk

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.

All 5 tripwires holding · see Key things to watch ↑