Dredging Corporation of India Ltd (DREDGECORP) — share price & stock analysis

Market cap

₹3,050 Cr

P/E

642×

ROE

0.4%

vs own 10-yr valuation

97th pctile

Book value / share

₹439

EPS (TTM)

₹1.7

10-yr median P/E

60.5×

Revenue (FY26)

₹1,208 Cr

Profit after tax (FY26)

₹5 Cr

Weinstein stage

Stage 2 (32 weeks)

Data as of

1 July 2026

5 of the 6 things we track are currently moving the right way — nearly everything is pulling in the same direction.

Where the levels actually stand: ROCE 4% — weak; real debt (0.88× equity); margins near the top of their band. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double.

The price has risen while profits fell

Since Jun 2016, the stock is up 152% while earnings per share fell 59%. The difference is re-rating — investors paying more for the same rupee of profit.pricettm_eps

That works until it doesn’t: from here, earnings have to do the lifting, because the multiple has already done its part.

Today’s P/E of 642× means the market is paying up — this is the expensive end of its own 10-year history (97th percentile).pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots (the window starts at the first stable snapshot — earlier IPO-era share-count revisions are excluded, since they are not earnings events); between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (60.5×).

The price is in a confirmed uptrend — 32 weeks and counting

Stock prices move through four repeating stages: basing (1), advancing (2), topping (3) and declining (4). This one is in Stage 2: advancing, 32 weeks in, confirmed.stage

The price sits above its rising 200-day average (₹938 today) and its strength against the index is still improving — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 40 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Out of the loss years — profitable again, still below its best

Over 12 years, sales went from ₹770 Cr to ₹1,208 Cr (about 4% a year), and profit from ₹38.0 Cr to ₹5.0 Cr.revenuenet_profit

The books show real losses in FY21 and FY23 and FY25 (worst: ₹−196 Cr). Everything about today’s cheap-looking numbers must be read against that history — the recovery is what you are buying.net_profit

Sales have gone quiet — growth has stalled

Mar 26 sales were ₹478 Cr, up 4% on the same quarter last year.revenue

Margins are widening — 17% → 30% in a year

Of every ₹100 of sales, the company keeps ₹29.9 as operating profit (a year ago it kept ₹16.6).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at −4.5% in FY21 and has been rebuilt to 20.5% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

The gross margin barely moved (100% → 100%), so the change came from running costs — the business is getting more efficient as it scales.gpm_pctopm_pct

Profit exploded 314% — mostly from keeping more of each sale

Mar 26 profit after tax was ₹87.0 Cr, up 314% year on year.net_profit

The profits are real — they turn into cash

Over the last 3 profitable years, the business reported ₹42.0 Cr of profit and collected ₹538 Cr of operating cash — about 1281% conversion (2 loss years excluded — a negative denominator would flatter the ratio).operating_cash_flownet_profit

When cash tracks profit this closely, the earnings need no asterisk.

The cash cycle is tightening — money comes home faster

One rupee now takes about 71 days to go out the door as materials and come back as collected cash — down from 81 days the year before.cash_conversion_cycle

The biggest mover: customers paying faster (81 → 71 days).debtor_days

Building hard — new capacity is under construction

The productive asset base has gone from ₹2,188 Cr (FY14) to ₹1,207 Cr, with another ₹894 Cr of capacity under construction right now.fixed_assetscwip

Work-in-progress is 74% of the existing asset base — that is a serious bet on future demand. Capacity like this shows up in sales with a lag; it is tomorrow’s growth being paid for today.cwip

The build is bigger than the cash engine: investing outflows (₹1,135 Cr) exceeded operating cash (₹445 Cr) over the last 3 years — the difference comes from debt or shareholders.investing_cash_flowoperating_cash_flow

Carrying real debt

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹88.borrowings

Every ₹100 kept in the business earns just ₹4

Return on capital employed is 4.0% (a year ago: 0.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

Rising returns on capital while growing is the rarest combination in investing — it means the new projects earn more than the old ones.roce_pct

Institutions sold for years — and have been buying back since

Promoters hold 73.5%, essentially unchanged. Foreign funds own 0.4%, domestic funds 8.3%.promoters_pctfiis_pctdiis_pct

Domestic funds tell the real story: they sold from 7.1% down to 5.1% (Jun 24), and have been buying back since — now 8.3%. A completed round trip like that usually means the doubts got answered.diis_pct

The data doesn’t make the case yet

The numbers say be careful, and the price already assumes the good news continues.

Best thing in the data: profit rising (₹21.0 Cr → ₹87.0 Cr).net_profit

One dissent worth hearing: our technicals lens reads positive — “bullish MA stacking (Price > DMA50 > DMA200)”. When a lens disagrees with the committee, it is usually pointing at the thing that breaks first.

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data