Prevest Denpro Limited

Healthcare — Medical Instruments & Supplies · BSE

₹409.00+₹19.20 (+4.93%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Prevest Denpro Limited, together with its subsidiaries, engages in the manufacturing and marketing of dental materials and allied products.

IndustryMedical Instruments & Supplies

SectorHealthcare

Employees139

Annual revenue₹71 Cr

How does it make money?

Turns over ₹71 Cr a year. Of every ₹100 of sales, about ₹29 reaches shareholders as profit, with ₹42 left at the operating level before interest, tax and depreciation. Each of its 139 employees supports ₹51.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹51.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, CIPLA LTD, DR. REDDY S LABORATORIES, APOLLO HOSPITALS ENTER. L. 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 21.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 16.4% against a peer median of 14.5% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE14.5%

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 +42% 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+42%

Margin effect-8%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.59 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

75/ 100

Good

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

Valuation

70/ 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

22.6x

3Y Median

33.1x

40 monthly readings · mean 33.2x · range 22.3x–49.8x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 32% below its 3y median of 33.1x. 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 32% below the peer median of 33.3x.

vs. its own history

Cheap

33.1x median over 40 months · -32%

vs. sector peers

Cheap

33.3x median of 4 peers · -32%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.1x

PEG

2.44

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 21.9% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 43.4% to 41.8% over 3 years.
Return on equity is falling
ROE has dropped from 21.6% to 16.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 1066.2% to 21.9% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Receivables growing faster than salesFinancial
Receivables up 102% against revenue up 42% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 127% against revenue up 42% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.9% 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.
Priced below its own history
The stock trades 32% 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 32% 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?

Margins are being competed away
EBITDA margin has fallen from 43.4% to 41.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 102% against revenue up 42%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 21.6% to 16.4%. 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.
Several serious flags at once
2 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 9% a year✓ 12.5% CAGR
Latest reported year was 20.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 40%✓ 41.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹13 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 19%✓ 21.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 33.1x✓ 22.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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 · 5 neutral · 0 weak

Market Cap

₹491 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.6x

Fair

Fairly valued against the generic band

P/B Ratio

3.93x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹18.1

Profitable

Profitable on a per-share basis

ROE

16.4%

Strong

Strong capital efficiency

ROCE

21.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

20.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

28.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.24%

Modest

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

Free Cash Flow

₹13 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

32.7%

Good

Healthy core-business profitability

Net Margin

28.9%

Good

Strong bottom-line conversion

Current Ratio

14.91

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.59

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

385.8 / 387.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

65.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹50 Cr	₹56 Cr	₹62 Cr	₹71 Cr	+12.5%
EBITDA	₹22 Cr	₹23 Cr	₹26 Cr	₹30 Cr	+11.1%
EBITDA Margin	43.4%	40.6%	42.2%	41.8%	—
PAT (Net Profit)	₹16 Cr	₹16 Cr	₹18 Cr	₹20 Cr	+9.3%
EPS	₹13.09	₹13.45	₹15.13	₹17.07	+9.3%
ROE	21.6%	18.2%	17.2%	16.4%	—
ROCE	1066.2%	24.0%	22.8%	21.9%	—
Free Cash Flow	-₹3 Cr	₹8 Cr	₹13 Cr	₹13 Cr	—

🟢 Revenue has grown at 12.5% a year over 3 years.

🟢 EBITDA has grown at 11.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 43.4% to 41.8% over 3 years (-1.6 pts).

🟢 PAT (Net Profit) has grown at 9.3% a year over 3 years.

🟢 EPS has grown at 9.3% a year over 3 years.

🔴 ROE has fallen from 21.6% to 16.4% over 3 years (-5.2 pts).

🔴 ROCE has fallen from 1066.2% to 21.9% over 3 years (-1044.3 pts).

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹13 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹133 Cr

Total Liabilities

₹8 Cr

Total Debt

—

Cash & Equivalents

₹73 Cr

Operating Cash Flow

₹15 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.2%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

04 Sept 2026

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%
DR. REDDY S LABORATORIES	31.0x	8.8%
APOLLO HOSPITALS ENTER. L	54.3x	22.0%

Recent News

2 positive4 general

Latest Shareholding Pattern of PREVEST DENPRO

Equitymaster, 17 Oct

Prevest Denpro Ltd is Rated Sell

MarketsMojo, 14 Oct

Prevest Denpro reports 28% PAT surge in Q1FY27, declares dividend

scanx.trade, 11 AugCapital return

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

Prevest Denpro Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 03 Sept

Prevest Denpro consolidated net profit rises 27.89% in the June 2026 quarter

Business Standard, 12 AugResults

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

Prevest Denpro Limited Share Price

Upstox, 14 Dec

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

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

All 5 tripwires holding · see Key things to watch ↑