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Veljan Denison Ltd logo

Veljan Denison Ltd

NSE: BSE: 505232

₹1040.30

(3.14%)

Mon, 25 May 2026, 07:09 am

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Veljan Denison Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (6.6x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Veljan Denison's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Veljan Denison's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • Veljan Denison is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Veljan Denison is profitable, therefore cash runway is not a concern.
  • Veljan Denison is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (1658.3%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 77x debt.
  • Veljan Denison's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (28.3% vs 1.1% today).
  • Veljan Denison earns more interest than it pays, coverage of interest payments is not a concern.
  • Veljan Denison's level of debt (1.1%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Veljan Denison board of directors is about average.
  • Velamati Chandrasekhara's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the Veljan Denison management team is about average.
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Cons

  • Velamati Chandrasekhara's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Veljan Denison is not covered by any analysts.
    • Veljan Denison has significant price volatility in the past 3 months.

    past

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    Pros

    • Veljan Denison's year on year earnings growth rate has been positive over the past 5 years.
    • Veljan Denison used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.
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    Cons

    • Veljan Denison's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • Veljan Denison's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Veljan Denison has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Veljan Denison's 1-year earnings growth is negative, it can't be compared to the IN Machinery industry average.

    value

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    Pros

    • 505232 outperformed the Machinery industry which returned -23.7% over the past year.
    • 505232 outperformed the Market in India which returned -14.5% over the past year.
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    Cons

    • Veljan Denison's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Veljan Denison's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Veljan Denison is overvalued based on assets compared to the IN Machinery industry average.
    • Veljan Denison is overvalued based on earnings compared to the IN Machinery industry average.
    • Veljan Denison is overvalued based on earnings compared to the India market.
    • BSE:505232 is up 6.7% underperforming the Machinery industry which returned 8.3% over the past month.
    • BSE:505232 is up 6.7% underperforming the market in India which returned 8% over the past month.