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.

1 Like

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.

1 Like

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.

1 Like

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.

1 Like