BSE: 0 | NSE: DIVYADHAN | Textile - Manmade Fibres |
Past 10 year's financial track record analysis by Moneyworks4me indicates that Divyadhan Recycling Industries Ltd is a average quality company.
The key valuation ratios of Divyadhan Recycling Industries Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Divyadhan Recycling Industries Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|
| ROCE % ⓘ | 7.6% | 10% | 25.2% | 24% | - |
| Value Creation Index ⓘ | -0.5 | -0.3 | 0.8 | 0.7 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | |||||
| Sales ⓘ | 41.4 | 57.8 | 57.3 | 56.1 | 56 |
| Sales YoY Gr. | - | 39.6% | -0.8% | -2.1% | - |
| Adj EPS ⓘ | 0.2 | 0.5 | 2.2 | 2.3 | 1.7 |
| YoY Gr. | - | 134.8% | 303.7% | 3.7% | - |
| BVPS (₹) ⓘ | 5.9 | 6.4 | 8.6 | 12.3 | 29.6 |
| Adj Net Profit ⓘ | 0.2 | 0.5 | 2.1 | 2.4 | 2 |
| Cash Flow from Ops. ⓘ | 4.1 | 3.8 | 4.4 | 2.2 | - |
| Debt/CF from Ops. ⓘ | 2.5 | 2.1 | 1.2 | 2.8 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | NA | NA | 10.7% | -2.1% | ||||
| Adj EPS ⓘ | NA | NA | 114.2% | 3.7% | ||||
| BVPSⓘ | NA | NA | 27.9% | 42.6% | ||||
| Share Price | - | - | - | - | ||||
Performance Ratio Colour Code Guide ⓘ
| Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|
| Return on Equity % ⓘ | 3.9 | 8.7 | 28.7 | 22.2 | 7.9 |
| Op. Profit Mgn % ⓘ | -1 | 1.6 | 7.4 | 4.8 | NAN |
| Net Profit Mgn % ⓘ | 0.6 | 0.9 | 3.7 | 4.2 | 4.2 |
| Debt to Equity ⓘ | 1.8 | 1.3 | 0.6 | 0.5 | - |
| Working Cap Days ⓘ | 0 | 43 | 42 | 56 | 0 |
| Cash Conv. Cycle ⓘ | 0 | 19 | 15 | 25 | 0 |
Sales growth is growing at healthy rate in last 3 years 10.69%
Net Profit is growing at healthy rate in last 3 years 114.19%
Debt to equity has declined versus last 3 years average to 0.47
Return on Equity has declined versus last 3 years average to 7.90%
Sales growth is not so good in last 4 quarters at 0.00%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 1.7 | - |
| TTM Sales (₹ Cr.) | 56.1 | - |
| BVPS (₹.) ⓘ | 29.6 | - |
| Reserves (₹ Cr.) ⓘ | 28 | - |
| P/BV ⓘ | 2.81 | - |
| PE ⓘ | 50.12 | - |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 0.00 / 0.00 |
| All Time Low / High (₹) | - / - |
| Market Cap (₹ Cr.) | 119 |
| Equity (₹ Cr.) | 14.3 |
| Face Value (₹) | 10 |
| Industry PE ⓘ | 23.4 |
| PARTICULARS | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|
| Sales | 41 | 58 | 57 | 56 |
| Operating Expenses ⓘ | 42 | 57 | 53 | 53 |
| Manufacturing Costs | 3 | 3 | 3 | 4 |
| Material Costs | 34 | 50 | 47 | 46 |
| Employee Cost | 1 | 1 | 1 | 1 |
| Other Costs ⓘ | 3 | 3 | 2 | 3 |
| Operating Profit ⓘ | 0 | 1 | 4 | 3 |
| Operating Profit Margin (%) | -1.0% | 1.6% | 7.4% | 4.8% |
| Other Income ⓘ | 3 | 2 | 1 | 3 |
| Interest ⓘ | 1 | 1 | 1 | 1 |
| Depreciation ⓘ | 1 | 1 | 2 | 2 |
| Exceptional Items ⓘ | 0 | 0 | 0 | 0 |
| Profit Before Tax ⓘ | 0 | 1 | 3 | 3 |
| Tax ⓘ | 0 | 0 | 1 | 1 |
| Profit After Tax | 0 | 1 | 2 | 2 |
| PAT Margin (%) | 0.6% | 0.9% | 3.8% | 4.2% |
| Adjusted EPS (₹) | 0.2 | 0.5 | 2.2 | 2.3 |
| Dividend Payout Ratio (%) | 0% | 0% | 0% | 0% |
| PARTICULARS | Mar'21 | Mar'22 | Mar'23 | Mar'24 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Shareholders Fund | 6 | 6 | 9 | 13 | ||||||
| Share Capital ⓘ | 5 | 5 | 5 | 5 | ||||||
| Reserves ⓘ | 1 | 1 | 4 | 8 | ||||||
| Minority Interest | 0 | 0 | 0 | 0 | ||||||
| Debt | 10 | 8 | 5 | 5 | ||||||
| Long Term Debt | 7 | 5 | 2 | 0 | ||||||
| Short Term Debt | 4 | 3 | 3 | 5 | ||||||
| Trade Payables | 3 | 2 | 3 | 3 | ||||||
| Others Liabilities ⓘ | 2 | 1 | 2 | 3 | ||||||
| Total Liabilities ⓘ | 21 | 18 | 19 | 24 | ||||||
Fixed Assets | ||||||||||
| Gross Block | 16 | 17 | 18 | 20 | ||||||
| Accumulated Depreciation | 3 | 5 | 6 | 8 | ||||||
| Net Fixed Assetsⓘ | 13 | 12 | 12 | 12 | ||||||
| CWIP ⓘ | 0 | 0 | 0 | 0 | ||||||
| Investmentsⓘ | 0 | 0 | 0 | 0 | ||||||
| Inventories | 5 | 2 | 5 | 5 | ||||||
| Trade Receivables | 2 | 2 | 2 | 3 | ||||||
| Cash Equivalents | 0 | 0 | 0 | 2 | ||||||
| Others Assetsⓘ | 1 | 2 | 1 | 2 | ||||||
| Total Assets ⓘ | 21 | 18 | 19 | 24 | ||||||
| PARTICULARS | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 4 | 4 | 4 | 2 |
| PBT ⓘ | 0 | 1 | 3 | 3 |
| Adjustment ⓘ | 2 | 2 | 2 | 2 |
| Changes in Working Capital ⓘ | 2 | 1 | 0 | -3 |
| Tax Paid ⓘ | 0 | 0 | -1 | -1 |
| Cash Flow From Investing Activity ⓘ | -1 | -1 | -1 | -2 |
| Capex | -1 | -1 | -1 | -2 |
| Net Investments | 0 | 0 | 0 | 0 |
| Others ⓘ | 0 | 0 | 0 | 0 |
| Cash Flow From Financing Activityⓘ | -3 | -3 | -3 | 2 |
| Net Proceeds from Shares ⓘ | 0 | 0 | 0 | 2 |
| Net Proceeds from Borrowing ⓘ | 0 | -2 | -2 | -2 |
| Interest Paid ⓘ | -1 | -1 | -1 | -1 |
| Dividend Paid ⓘ | 0 | 0 | 0 | 0 |
| Others ⓘ | -2 | 0 | 0 | 3 |
| Net Cash Flow ⓘ | 0 | 0 | 0 | 2 |
| PARTICULARS | Mar'21 | Mar'22 | Mar'23 | Mar'24 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | 3.98 | 8.8 | 29.37 | 22.27 | ||||||
| ROCE (%) | 7.57 | 9.97 | 25.22 | 23.96 | ||||||
| Asset Turnover Ratio | 1.99 | 3 | 3.09 | 2.58 | ||||||
| PAT to CFO Conversion(x) | N/A | 4 | 2 | 1 | Working Capital Days | |||||
| Receivable Days | 18 | 13 | 13 | 17 | ||||||
| Inventory Days | 44 | 23 | 22 | 31 | ||||||
| Payable Days | 31 | 19 | 22 | 26 | ||||||
Divyadhan Recycling Industries Limited was incorporated as a private limited company with the name of ‘Divyadhan Consultants Private Limited’ under the Companies Act, 1956 vide certificate of incorporation dated May 03, 2010 issued by Registrar of Companies, Mumbai. Further in year, 2023 the name of the company was changed from ‘Divyadhan Consultants Private Limited’ to ‘Divyadhan Recycling Industries Private Limited’, pursuant to which the ROC, Mumbai has issued a Certificate of Incorporation dated November 10, 2023. Subsequently the company was converted into public company namely, Divyadhan Recycling Industries Limited, pursuant to shareholders’ resolution dated December 13, 2023 vide new Certificate of Incorporation dated March 02, 2024.
Divyadhan Recycling Industries is into the business of manufacturing of Recycled Polyester Staple Fibre (R-PSF) and Recycled Pellets. The recycled fibre and pellets are produced from post-consumer PET bottles also known as Polyethylene Terephthalate bottles. The company started its operations in the financial year 2018-19, by manufacturing Recycled Polyester Staple Fibre (R-PSF) at their manufacturing facility based in Baddi, Himachal Pradesh with a capacity of 8030 Metric tons per annum. Further, in November 2023, the company also started manufacturing of Recycled Pellets. However, the company is in the trial stage of manufacturing the recycled pellets.
The promoters of the company acquired the company from initial promoters (subscribers to the memorandum of association) in the year 2013-14, since then till FY 2015 - 2016, the company was looking for better opportunities to acquire land and building, plant and machinery to start its manufacturing facility. In the year 2015 - 16, the company came across and acquired a distressed asset from the Axis Bank under SARFESI Act, 2002 and it took almost 2 years to get all the necessary approvals and sanctions from many departments in such as pollution board, electricity department, fire and water department to get the manufacturing facility operational and commence its production. In the year 2018-19, the company finally started its operations.
The company produces Hollow and Solid Recycled Polyester Staple Fibre, which gives good resilience properties and is used to make premium pillows, cushions and quilts. The recycled fibre is supplied to various industries such as Packaging, home furnishing and Textiles. Its hollow structure adds to its insulating properties, making it suitable for use in a wide range of products including clothing, home furnishings, automotive components, non-woven fabrics, and insulation materials. The recycled pellets are used to manufacture food grade and non-food grade bottles. FSSAI has issued latest instructions dated June 15, 2022, for acceptance criteria for recycled PET for food packaging. Further, the company is currently catering to non-food industries requiring recycled bottles for their packaging.
Business area of the company
The company is engaged in the manufacturing of Recycled Polyester Fiber and Recycled Pellets.
Products of the company
History and milestones
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