(1/16)
About:
Established in 1998 DGTL develops and produces mission-critical products and instrumentation for defence and aerospace industries.
It has proven in-house design & development capabilities and experience of more than 3 decades in the same space.
About:
Established in 1998 DGTL develops and produces mission-critical products and instrumentation for defence and aerospace industries.
It has proven in-house design & development capabilities and experience of more than 3 decades in the same space.
(2/16)
Segment Overview:
Indian defence and aerospace segment is expected to reach USD 70 Billion by 2030.
The Indian defence market represents accessible cumulative revenue generation opportunity of $306.95 Billion between 2021 and 2030.
Segment Overview:
Indian defence and aerospace segment is expected to reach USD 70 Billion by 2030.
The Indian defence market represents accessible cumulative revenue generation opportunity of $306.95 Billion between 2021 and 2030.
(3/16)
Govt Initiatives:
• Increase in capital allocation by 5.3%
• SPV formed to focus on design, development & production of major defence equipment
• Govt released Defence Acquisition Procedure 2020 (DAP)
to transform India into a global manufacturing hub
Govt Initiatives:
• Increase in capital allocation by 5.3%
• SPV formed to focus on design, development & production of major defence equipment
• Govt released Defence Acquisition Procedure 2020 (DAP)
to transform India into a global manufacturing hub
(4/16)
Growth Drivers:
• India expects to enhance its share in the global space economy from less than 2% at the moment to 10%
• Increased use of space launch vehicle for satellites & testing applications, inception of space tourism & development of satellite internet system
Growth Drivers:
• India expects to enhance its share in the global space economy from less than 2% at the moment to 10%
• Increased use of space launch vehicle for satellites & testing applications, inception of space tourism & development of satellite internet system
(5/16)
• ISRO’s announcement to provide ~70% mandate of all upcoming space missions to private players over five years
• The Indian space sector could ride the global space industry, projected to generate $1 Trillion revenues by 2040
• ISRO’s announcement to provide ~70% mandate of all upcoming space missions to private players over five years
• The Indian space sector could ride the global space industry, projected to generate $1 Trillion revenues by 2040
(6/16)
Key strengths:
• Established track record:
They have established healthy relations with their key customers such as BEL, HAL, ISRO & DRDO.
This helps in maintaining healthy in-hand order book and would continue supporting business risk profile over the medium term.
Key strengths:
• Established track record:
They have established healthy relations with their key customers such as BEL, HAL, ISRO & DRDO.
This helps in maintaining healthy in-hand order book and would continue supporting business risk profile over the medium term.
(7/16)
• Comfortable financial risk profile:
The group's net worth and gearing are ₹592 crore and 0. 02 times which is healthy.
Debt protection metrics continue to remain comfortable with interest coverage of 17.2 times and NCATD of 0.62 times.
• Comfortable financial risk profile:
The group's net worth and gearing are ₹592 crore and 0. 02 times which is healthy.
Debt protection metrics continue to remain comfortable with interest coverage of 17.2 times and NCATD of 0.62 times.
(8/16)
Weaknesses:
• Working-capital-intensive operations:
Business of DPIL continues to remain working capital intensive, marked by its high cash conversion cycle days of around 579 days.
The same is due to high inventory levels and elongated debtor days.
Weaknesses:
• Working-capital-intensive operations:
Business of DPIL continues to remain working capital intensive, marked by its high cash conversion cycle days of around 579 days.
The same is due to high inventory levels and elongated debtor days.
(9/16)
• Susceptibility to changes in sourcing policies of key customers:
Majority of revenue is from various PSUs such as DRDO, ISRO, HAL. This renders the group's revenue profile vulnerable to any significant change in the GOI's policies regarding defence & space programs.
• Susceptibility to changes in sourcing policies of key customers:
Majority of revenue is from various PSUs such as DRDO, ISRO, HAL. This renders the group's revenue profile vulnerable to any significant change in the GOI's policies regarding defence & space programs.
(10/16)
• Liquidity:
DPIL has adequate liquidity, marked by sufficient cash accruals as against repayment of term loan obligations and moderate current ratio. Average month end bank limit utilization for the last 12 months remains moderate at around 50%.
• Liquidity:
DPIL has adequate liquidity, marked by sufficient cash accruals as against repayment of term loan obligations and moderate current ratio. Average month end bank limit utilization for the last 12 months remains moderate at around 50%.
(11/16)
• Product Portfolio:
Radars, Underwater electronics/communications/other systems, Electronic warfare suite, BrahMos programme, Avionics, small satellites, ATE for defence and aerospace systems, Commercial off the shelf (COTS)
• Product Portfolio:
Radars, Underwater electronics/communications/other systems, Electronic warfare suite, BrahMos programme, Avionics, small satellites, ATE for defence and aerospace systems, Commercial off the shelf (COTS)
(12/16)
Financial Ratios:
• Stock P/E: 68.2 times
• Market Cap: ₹7,216 cr
• RoCE: 31.7%
• RoE: 24%
• Sales Growth 3 years: 33.4%
• Int Coverage: 17.2
• PEG: 0.42
• NPM Last year: 30.2%
• Debt: ₹14cr
• OPM: 34%
Financial Ratios:
• Stock P/E: 68.2 times
• Market Cap: ₹7,216 cr
• RoCE: 31.7%
• RoE: 24%
• Sales Growth 3 years: 33.4%
• Int Coverage: 17.2
• PEG: 0.42
• NPM Last year: 30.2%
• Debt: ₹14cr
• OPM: 34%
(13/16)
H1 Performance:
• Order book as on 30th Sep at Rs 837cr
• EBITDA CAGR of 73% over FY19-FY22
• Order inflow in H1 of ₹517cr, grew 3x YoY
• Record Revenue; grew 62% YoY to ₹156cr EBITDA
• New Manufacturing facility is expected to be commenced from Q3 FY23
H1 Performance:
• Order book as on 30th Sep at Rs 837cr
• EBITDA CAGR of 73% over FY19-FY22
• Order inflow in H1 of ₹517cr, grew 3x YoY
• Record Revenue; grew 62% YoY to ₹156cr EBITDA
• New Manufacturing facility is expected to be commenced from Q3 FY23
(14/16)
Future target:
• Expects to be a major participant for Rs20-30bn worth of contracts in the next 3-4 years
• Targeting larger opportunities in Radar, EW and Satellite business
• Efficient execution to promote operating leverage; strong Gross and EBITDA margins
Future target:
• Expects to be a major participant for Rs20-30bn worth of contracts in the next 3-4 years
• Targeting larger opportunities in Radar, EW and Satellite business
• Efficient execution to promote operating leverage; strong Gross and EBITDA margins
(15/16)
Shareholding:
• Promoters: 45.67%
• FIIs: 1.6%
• DIIs: 9.24%
• Public: 43.40%
Shareholding:
• Promoters: 45.67%
• FIIs: 1.6%
• DIIs: 9.24%
• Public: 43.40%
(16/16)
What do you think is the major weakness that might play in the short term for the company?
@caniravkaria @kuttrapali26 @chartmojo
What do you think is the major weakness that might play in the short term for the company?
@caniravkaria @kuttrapali26 @chartmojo
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