BSE:505232

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Executive Summary

Veljan Denison Limited develops, manufactures, and sells pneumatic and hydraulic products, and components and systems in India.


Snowflake Analysis

Flawless balance sheet average dividend payer.

Share Price & News

How has Veljan Denison's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 505232 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

505232

3.2%

IN Machinery

2.9%

IN Market


1 Year Return

4.6%

505232

-17.8%

IN Machinery

-4.9%

IN Market

Return vs Industry: 505232 exceeded the Indian Machinery industry which returned -17.6% over the past year.

Return vs Market: 505232 exceeded the Indian Market which returned -5.3% over the past year.


Shareholder returns

505232IndustryMarket
7 Day-0.3%3.2%2.9%
30 Day-0.1%3.6%5.8%
90 Day11.8%21.5%18.5%
1 Year7.2%4.6%-16.2%-17.8%-3.0%-4.9%
3 Year-42.4%-45.0%-25.8%-28.9%1.5%-3.3%
5 Year1.8%-6.0%-4.1%-10.0%26.8%17.0%

Price Volatility Vs. Market

How volatile is Veljan Denison's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Veljan Denison undervalued compared to its fair value and its price relative to the market?

11.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 505232 (₹767.15) is trading above our estimate of fair value (₹645.66)

Significantly Below Fair Value: 505232 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 505232 is good value based on its PE Ratio (11.7x) compared to the Machinery industry average (12.8x).

PE vs Market: 505232 is good value based on its PE Ratio (11.7x) compared to the Indian market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 505232's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 505232 is overvalued based on its PB Ratio (1.2x) compared to the IN Machinery industry average (1x).


Next Steps

Future Growth

How is Veljan Denison forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.0%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Veljan Denison has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Veljan Denison performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 505232 has high quality earnings.

Growing Profit Margin: 505232's current net profit margins (16.2%) are lower than last year (18.7%).


Past Earnings Growth Analysis

Earnings Trend: 505232's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: 505232's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 505232 had negative earnings growth (-14.7%) over the past year, making it difficult to compare to the Machinery industry average (-8%).


Return on Equity

High ROE: 505232's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is Veljan Denison's financial position?


Financial Position Analysis

Short Term Liabilities: 505232's short term assets (₹1.2B) exceed its short term liabilities (₹250.1M).

Long Term Liabilities: 505232's short term assets (₹1.2B) exceed its long term liabilities (₹30.5M).


Debt to Equity History and Analysis

Debt Level: 505232's debt to equity ratio (1.1%) is considered satisfactory.

Reducing Debt: 505232's debt to equity ratio has reduced from 28.3% to 1.1% over the past 5 years.

Debt Coverage: 505232's debt is well covered by operating cash flow (1658.3%).

Interest Coverage: 505232 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Veljan Denison current dividend yield, its reliability and sustainability?

1.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 505232's dividend (1.3%) is higher than the bottom 25% of dividend payers in the Indian market (0.68%).

High Dividend: 505232's dividend (1.3%) is low compared to the top 25% of dividend payers in the Indian market (2.75%).


Stability and Growth of Payments

Stable Dividend: 505232's dividends per share have been stable in the past 10 years.

Growing Dividend: 505232's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.3%), 505232's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Velamati Chandrasekhara Rao (81yo)

5.5yrs

Tenure

₹8,684,428

Compensation

Mr. Velamati Chandrasekhara Janardan Rao serves as Managing Director of Veljan Denison Limited. Mr. Rao previously served as the Managing Director of Veljan Denison Limited from January 1, 2015 to August 2 ...


CEO Compensation Analysis

Compensation vs Market: Velamati Chandrasekhara's total compensation ($USD116.10K) is above average for companies of similar size in the Indian market ($USD49.45K).

Compensation vs Earnings: Velamati Chandrasekhara's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Velamati Chandrasekhara Rao
Chairman & MD5.5yrs₹8.68m13.77% 238.4m
G. Rao
Chief Financial Officer0.67yrno datano data
Bellamkonda Narahari
Company Secretary & Compliance Officer2.42yrsno datano data

2.4yrs

Average Tenure

Experienced Management: 505232's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Velamati Chandrasekhara Rao
Chairman & MD5.5yrs₹8.68m13.77% 238.4m
Vangala Pattabhi
Independent Non-Executive Director17yrs₹947.57kno data
Uma Uppaluri
Director6yrs₹847.57k4.93% 85.3m
B. Srinivasan
Independent Non-Executive Director6.92yrs₹947.57kno data

7.9yrs

Average Tenure

78yo

Average Age

Experienced Board: 505232's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Veljan Denison Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Veljan Denison Limited
  • Ticker: 505232
  • Exchange: BSE
  • Founded: 1973
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹1.732b
  • Shares outstanding: 2.25m
  • Website: https://www.veljan.in

Number of Employees


Location

  • Veljan Denison Limited
  • Plot No. A18 & 19, APIE
  • Balanagar
  • Hyderabad
  • Andhra Pradesh
  • 500037
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
505232BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2005

Biography

Veljan Denison Limited develops, manufactures, and sells pneumatic and hydraulic products, and components and systems in India. The company offers vane pumps and motors; gear pumps; hydraulic valves; system savers; hydraulic cylinders; power packs and manifolds; and hydraulic filters and mobile directional control valves. It also provides marine equipment, such as steering gear systems, fin stabilizer systems, hydraulic power units, control systems, test facilities, and other accessories. Veljan Denison Limited also exports its vane pumps and motors. The company was formerly known as Denison Hydraulics India Limited and changed its name to Veljan Denison Limited in April 2010. Veljan Denison Limited was incorporated in 1973 and is headquartered in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 12:42
End of Day Share Price2020/07/08 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.