Veljan Denison Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Veljan Denison Ltd trades at ₹1,730, in a confirmed uptrend and 4 weeks into that stage. That is +42.4% against its own 200-day average. It sits at 92% of a 52-week range of ₹992 to ₹1,790. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 8 straight weeks.

Today the stock is in a confirmed uptrend — week 4 of stage 2, confirmed. At ₹1,730 it trades +42.4% versus its 200-day average and sits at 92% of its 52-week range (₹992–₹1,790).

Against the market, two honest reads. Cumulative: over the last 4 months the stock moved +74% while the NIFTY 500 moved +0% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 8 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 75th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Veljan Denison Ltd trades at 30.4× P/E, at the pricey end of its own range (75th percentile). Its long-run median P/E is 22.8×, measured across 3.1 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 30.4× is at the pricey end of its own range (75th percentile), against a long-run median of 22.8× measured over 3.1 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources do not share enough overlapping reported history to be compared. A figure nobody could check is not used to price growth — the gap is a decision, not missing data.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Veljan Denison Ltd reads as consistent on its fundamental arc. Consistent — revenue and profit growth have stayed positive through the window, with ROCE at 15.0% and holding. The read is built from 9 quarters across 3 curves, on partial evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

50.2/100 — rank 3 of 5 in Compressors · 68% evidence confidence

Veljan Denison Ltd scores 50.2 out of 100 against the 5 companies it is compared with in Compressors, ranking 3. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 14.4 + 13.5 + 9.8 + 12.5 = 50.2. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Veljan Denison Ltd reported ₹45.9 Cr of revenue in the Mar 26 quarter, +10.7% year on year. Over 3 years it has compounded at 10.7% a year. The last full year, FY26, came in at ₹164 Cr. The last four reported quarters add to ₹164 Cr.

Veljan Denison Ltd reported ₹45.9 Cr of revenue in the Mar 26 quarter, +10.7% year on year. Over 3 years it has compounded at 10.7% a year. The last full year, FY26, came in at ₹164 Cr. The last four reported quarters add to ₹164 Cr.

FY26 revenue came in at ₹164 Cr (+5.1% on the year), capping 3 years at 10.7% compound. The latest quarter (Mar 26) printed ₹45.9 Cr, +10.7% year on year.

Pace check: the last four quarters averaged +5.5% growth against the decade's 10.7% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +5.4% over the last 4 quarters against +9.2%/yr over the last 8 — rolling over; TTM profit +8.8% vs +8.5%/yr — stabilising.

→ Revenue grew — did margins hold as it scaled? Next: 22.5% this quarter (−0.2 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Veljan Denison Ltd's operating margin is 22.5% in the Mar 26 quarter, −0.2 percentage points against the same quarter a year ago. Across 4 fiscal years the operating margin has ranged 21.0% to 24.0%. The current quarter sits inside that band.

Veljan Denison Ltd's operating margin is 22.5% in the Mar 26 quarter, −0.2 percentage points against the same quarter a year ago. Across 4 fiscal years the operating margin has ranged 21.0% to 24.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 22.5%, −0.2 pp against the same quarter a year ago. Across 4 fiscal years the operating margin has ranged 21.0%–24.0%.

🚨 Why the margin moved: operating margin went −0.2 pp year on year while gross margin went −10.4 pp — the loss came mostly from the gross line: input costs and pricing.

→ Margins slipped — did that reach the bottom line? Next: profit +12.6% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Veljan Denison Ltd earned ₹6.8 Cr of net profit in the Mar 26 quarter, +12.6% year on year. Full-year FY26 profit was ₹26.0 Cr. The 3-year compound rate is 17.6%. That is 14.8% of the quarter's revenue. The same quarter a year earlier earned ₹6.0 Cr.

Veljan Denison Ltd earned ₹6.8 Cr of net profit in the Mar 26 quarter, +12.6% year on year. Full-year FY26 profit was ₹26.0 Cr. The 3-year compound rate is 17.6%. That is 14.8% of the quarter's revenue. The same quarter a year earlier earned ₹6.0 Cr.

Mar 26 profit was ₹6.8 Cr, +12.6% year on year. On the full year, FY26 printed ₹26.0 Cr (+8.3%), and the 3-year compound rate is 17.6%.

Why profit moved: revenue contributed +10.7% and the margin −0.2 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +10.9% vs revenue +5.5%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 92% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 92% of Veljan Denison Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹32.0 Cr of operating cash against ₹26.0 Cr of profit. After ₹7.0 Cr of capital spending, ₹25.0 Cr was left as free cash.

FY26: operating cash of ₹32.0 Cr against reported profit of ₹26.0 Cr, leaving free cash of ₹25.0 Cr after ₹7.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 92% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 92%: the cash cycle held roughly steady between FY23 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: the bigger cash user is investment — capital spending ran 1.7× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹31.0 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Veljan Denison Ltd's cash conversion cycle runs 466 days in FY26, up from 464 days in FY23. Capital spending ran ₹31.0 Cr over the last 3 years. At FY26 sales of ₹164 Cr each day of that cycle holds about ₹0.4 Cr, so roughly ₹209 Cr sits inside the business at any moment.

FY26: debtors at 81 days, inventory at 447 days — roughly 14.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 466 days, looser than FY23's 464.

The full loop: cash goes out to suppliers and production on day 0; stock waits 447 days to sell; customers pay about 81 days after that; and suppliers themselves are paid at 63 days — netting out to the 466-day cycle.

In money terms: at FY26 sales of ₹164 Cr, each day of the cycle holds about ₹0.4 Cr — so the 466-day loop keeps roughly ₹209 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹31.0 Cr over the last 3 fiscal years against ₹18.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹2.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 15% and the ROIC − WACC spread is +0.4 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.⚠ unverified

Veljan Denison Ltd earns a ROCE of 15% in FY26. That is up from a trough of 15% in FY24. Return on invested capital clears the cost of that capital by +0.4 percentage points, so growth here adds value rather than only size. The wiring behind it is 15.9% net margin on 0.58× asset turns.

FY26 ROCE is 15%, recovered from a FY24 trough of 15% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 15.9% net margin × 0.58× asset turns × 1.13× balance-sheet leverage ≈ 10.4% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 12.4% − 12.0% = a +0.4 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.00.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.⚠ unverified

Veljan Denison Ltd carries total debt of ₹1.0 Cr against shareholder equity of ₹251 Cr as of Mar 26, a debt-to-equity of 0.00 — effectively unlevered. On the annual view that ratio went from 0.04 in FY22 to 0.00 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹1.0 Cr against shareholder equity of ₹251 Cr — a debt-to-equity of 0.00. On the annual view, debt-to-equity went from 0.04 (FY22) to 0.00 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: the register is quiet.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Veljan Denison Ltd moved a full percentage point over the last two years — the register is quiet. Domestic institutions moved +0.0 points over the same window, to 0.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: +0.0 points over 8 quarters to 75.0%; Domestic institutions: +0.0 points over 8 quarters to 0.0%.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Veljan Denison Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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