DHP India Ltd - Regulators and Fittings

Results for quarter ending Sep 23 : https://www.bseindia.com/xml-data/corpfiling/AttachLive/1bdce2ac-245c-4555-b7e7-19b5d21235cd.pdf

Revenue from Sales is 11.2Cr which is lesser than last quarter.
Interestingly, there’s other income of 24Cr!! This has boosted the overall results for the quarter and stock is reacting accordingly.

Can someone please explain this increase in other income?

Probably increase in Mutual Fund investments.

This is nothing but a jugglery made to boost profits & equity by selling old investments and re-investing more than realized cash to same asset class. Operating results otherwise are pathetic where the core business seems to have saturated with consecutively poor sales and profits.

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HI Lakshmi Narasimhan,

I really look forward to your analysis after the results. So will you be holding it or booking out entirely?

Hi LN, Many industries are are going through a rough phase, whether its Consumer Durables, footwear or textile. DHP seems a small cap with no comparable it seems. pls suggest if there are any peers that we can compare this with to judge the performance better…

You being an old investor in this counter so pls correct but few positives i could note were:

  • Some Mutual fund investments sold at a profit (though non core); maybe deployed at opportune time
  • Inventories seem to be going down (cash flow statement)
  • Remaining Equity investments seem to have done well considering the income from sale of 26Cr worth; while the value has gone down by only 13.2 Cr

  1. The September Quarter is usually the best Quarter in terms of Revenue for DHP. This time it’s the complete opposite. That’s a little concerning.

  2. There was absolutely no need to pad up the poor results by generating “Other Income” from Sale of Mutual Funds. Energy is best spent Managing the Business, not the P&L.

  3. All businesses go through difficult phases and that’s okay. What’s not okay is communicating nothing back to Shareholders, in order help them understand reasons behind the hardship. In fact, I’d say it’s a little insulting.


With 9 Cr turnover and ever decreasing trend in sales and margins, there is nothing much to analyze in the stock. P/B value is gradually testing for sub parity levels. With more and more juggleries in mutual funds without any uptick in its core business, this may happen sooner than we think.


Hi LNB : Considering DHP is export oriented business, majorly EU & South America. And these countries are facing tough economic scenarios specially in EU (like Germany & many others). Do you think, this can be the reason for de growth in sales for DHP. I think, even the company doesnt give the bifurcated figures geography wise.

PS : Holding for more than a decade. Totally biased. Can add more or sell out.

Shipments to US used to be more than combined exports to EU & South America. Facts not from company’s channel, but from other available free data sources. Will be interesting if someone with access to its recent data can share it here for the benefit of many others who feel trapped at higher prices.

Absolutely no clue what has caused the slump in its exports as their products are largely used as consumables in an ever-growing industry which is relatively more resilient to recessions. I see it more a hold / partial sell on rise call than to add now, even if the company is sitting on 150 Cr cash which is 60% of its market cap.


As per export data, I could only see one customer - Fairview Fittings USA getting more than 90% of realized sales value since 2 years. Hence that reason along with better opportunities in market made me exit the company sometime around last year. I might be wrong if the export data I received had any human alterations.
I might take a reentry if any change in business direction from management.

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Current recession in USA and Europe is the main reason for decrease in sales. Many companies exporting to these regions are also facing the issue. I would say, better to wait and see what the company can do once the recession problem goes away. Have patience.


So pathetic to see the stock struggling to gain any traction even with ~70% of its market cap held in Mutual Funds and at the best times of bull market.

Although I feel lucky to have divested some portion into better growth stocks when it rallied in late ‘22, I feel sorry for the company as it continues to elude investors’ attention even with its rock-solid cash position. Any slight improvement in its operational results can send its price soaring back to '22 highs. Hope 2024 will turn out to be a good year for the company.


Another quarter of terrible results. Net loss. The silver lining is that the management didn’t try to pad up the results by selling Mutual Funds.

I’m disappointed once again with the total lack of communication around why the business is facing this difficulty and what steps are being taken to overcome it.


Will be talking to someone there. What are the questions I can ask them during my discussion?

Thank you.

  1. Is the company going through a particularly difficult phase? Or is it an industry wide issue?

  2. What measures are being taken to course through this phase?

And a general request would be to have a regular communication with investors. Concall works best.

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Company sales are not able to catch up with their investment returns.162 cr capital invested in MFs can soon get drained paying employee salaries and overheads. Shutting down the business and promoters taking early retirement can save them all the wealth earned last 10 years.


Some excerpts from my conversation:

  • The revenue drop is one off and it should improve going forward.
  • They are not planning to sell-off the mutual funds anytime in the near future and continue to hold it.
  • About conducting conference calls, the feedback is taken and they will think about it.

Let’s see if the results improve from here.


Hey, Many thanks for the updates.
What is the reason for this one off, was it higher inventory bought earlier by customer ? And now replenishment will start ?