WEBSITE BSE:544331 NSE: DAVIN Inc. Year: 2023 Industry: Retailing My Bucket: Add Stock
Last updated: 11:30
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1. Business Overview
Davin Sons Retail Ltd. (DAVIN) operates in the retailing sector in India. Its core business involves sourcing various consumer goods, managing inventory, and selling these products directly to end-consumers through its retail channels. The company's business model relies on attracting customers to its retail points (which may include physical stores like supermarkets, hypermarkets, specialty stores, or online platforms), offering a range of products, and generating revenue through sales. Profitability is derived from the difference between the selling price of goods and their procurement, operational, and marketing costs.
2. Key Segments / Revenue Mix
Without specific company data, the exact key segments or revenue mix for Davin Sons Retail Ltd. cannot be determined. Typically, a retail company in India might segment its business by:
Product Categories: e.g., apparel, groceries, electronics, home goods, general merchandise.
Store Formats: e.g., large format stores (hypermarkets), small format stores (supermarkets, convenience stores), specialty stores.
Sales Channels: e.g., physical brick-and-mortar stores, e-commerce, omni-channel operations.
A diversified retailer might have revenue contributions from multiple such categories.
3. Industry & Positioning
The Indian retail industry is characterized by its vast size, significant growth potential, and increasing formalization. It is highly competitive, comprising a mix of unorganized local kirana stores, regional and national organized retail chains, and a rapidly growing e-commerce segment. Competition is intense across price points and product categories. Without specific information, Davin Sons Retail Ltd.'s exact positioning is unknown, but it would likely compete on factors such as price, product assortment, store experience, location, brand loyalty, or online presence against both established national players and emerging online retailers.
4. Competitive Advantage (Moat)
Given no specific information on Davin Sons Retail Ltd., any competitive advantage is speculative. Potential moats for a retailer could include:
Brand Recognition & Trust: A strong, established brand that fosters customer loyalty.
Scale & Supply Chain Efficiency: The ability to achieve cost advantages through bulk purchasing, efficient logistics, and inventory management.
Strong Store Network/Real Estate: Prime store locations or extensive geographical reach that creates convenience and visibility.
Operational Excellence: Efficient in-store operations, customer service, and cost control.
Data & Technology: Effective use of customer data for personalization and efficient technology for inventory and supply chain management, particularly for omni-channel retailers.
Whether Davin Sons Retail Ltd. possesses any of these durable advantages would depend on its specific strategy and execution.
5. Growth Drivers
Key factors that could drive growth for Davin Sons Retail Ltd. over the next 3-5 years include:
Rising Disposable Incomes: Increasing affluence among Indian consumers leading to higher discretionary spending.
Urbanization and Tier 2/3 City Expansion: Growth opportunities by expanding into underserved urban and semi-urban markets.
Shift from Unorganized to Organized Retail: Consumers increasingly preferring the convenience, assortment, and experience offered by organized retailers.
Digital Adoption & Omni-channel Strategy: Leveraging e-commerce and integrating online and offline channels to reach a wider customer base and enhance shopping experience.
Favorable Demographics: India's young population and growing middle class represent a large consumer base.
6. Risks
Davin Sons Retail Ltd. faces several business risks common to the retail sector:
Intense Competition: From both traditional unorganized retailers, established national chains, and aggressive e-commerce players, leading to price wars and margin pressure.
Economic Downturns: A slowdown in the economy can directly impact consumer spending, particularly on discretionary items.
Supply Chain Disruptions & Inventory Management: Risks associated with sourcing, logistics, and managing inventory effectively to avoid stockouts or excess stock.
Rising Operational Costs: Increases in real estate rentals, labor costs, and utility expenses can erode profitability.
Changing Consumer Preferences: The need to continuously adapt product assortments and retail strategies to evolving tastes and trends.
Regulatory Changes: Potential changes in retail policies, e-commerce regulations, or labor laws.
Technological Obsolescence: Failure to adapt to new retail technologies and digital trends could lead to loss of competitive edge.
7. Management & Ownership
The name "Davin Sons" suggests a potential family-promoted or founded business, which is common in India. In such structures, promoters often hold significant ownership stakes and play a crucial role in strategic decision-making and day-to-day operations. The quality of management would depend on their experience, strategic vision, execution capabilities, and commitment to corporate governance. Without specific details, it is difficult to assess the quality of management or the precise ownership structure.
8. Outlook
Davin Sons Retail Ltd. operates in a dynamic and high-growth Indian retail market. The bull case hinges on the company's ability to effectively capitalize on India's rising consumption, increasing urbanization, and the ongoing formalization of retail. Success would require a strong execution strategy, including an optimal product mix, competitive pricing, efficient supply chain management, and potentially a robust omni-channel presence. The bear case involves significant challenges from fierce competition across all formats and channels, potential economic headwinds impacting consumer spending, and the risk of failing to adapt to rapidly evolving consumer preferences and technological advancements. Its long-term success will largely depend on its ability to differentiate itself and operate efficiently within this competitive landscape.
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Market Cap ₹17 Cr.
Stock P/E 10.5
P/B 1.1
Current Price ₹33.2
Book Value ₹ 29.2
Face Value 10
52W High ₹61.1
Dividend Yield 0%
52W Low ₹ 0
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) |
|---|
| Net Sales |
| Other Income |
| Total Income |
| Total Expenditure |
| Operating Profit |
| Interest |
| Depreciation |
| Exceptional Income / Expenses |
| Profit Before Tax |
| Provision for Tax |
| Profit After Tax |
| Adjustments |
| Profit After Adjustments |
| Adjusted Earnings Per Share |
| #(Fig in Cr.) | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|
| Net Sales | 0 | 4 | 13 | 14 | |
| Other Income | 0 | 0 | 0 | 0 | |
| Total Income | 0 | 4 | 13 | 14 | |
| Total Expenditure | 0 | 3 | 11 | 11 | |
| Operating Profit | 0 | 1 | 2 | 3 | |
| Interest | 0 | 0 | 0 | 0 | |
| Depreciation | 0 | 0 | 0 | 0 | |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | |
| Profit Before Tax | 0 | 1 | 2 | 2 | |
| Provision for Tax | 0 | 0 | 1 | 1 | |
| Profit After Tax | 0 | 1 | 2 | 2 | |
| Adjustments | 0 | 0 | 0 | 0 | |
| Profit After Adjustments | 0 | 1 | 2 | 2 | |
| Adjusted Earnings Per Share | 0 | 2.9 | 4.5 | 3.2 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 8% | 0% | 0% | 0% |
| Operating Profit CAGR | 50% | 0% | 0% | 0% |
| PAT CAGR | 0% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 68% | NA% | NA% | NA% |
| ROE Average | 15% | 55% | 41% | 41% |
| ROCE Average | 22% | 46% | 35% | 35% |
| #(Fig in Cr.) | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Shareholder's Funds | 0 | 1 | 6 | 16 |
| Minority's Interest | 0 | 0 | 0 | 0 |
| Borrowings | 0 | 1 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | -0 | 0 |
| Total Current Liabilities | 0 | 2 | 3 | 3 |
| Total Liabilities | 0 | 5 | 9 | 19 |
| Fixed Assets | 0 | 0 | 0 | 1 |
| Other Non-Current Assets | 0 | 0 | 0 | 0 |
| Total Current Assets | 0 | 4 | 8 | 18 |
| Total Assets | 0 | 5 | 9 | 19 |
| #(Fig in Cr.) | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 0 | 0 | 1 | 1 |
| Cash Flow from Operating Activities | -0 | -0 | -1 | -1 |
| Cash Flow from Investing Activities | 0 | -0 | -0 | -1 |
| Cash Flow from Financing Activities | 0 | 1 | 2 | 9 |
| Net Cash Inflow / Outflow | 0 | 1 | 0 | 7 |
| Closing Cash & Cash Equivalent | 0 | 1 | 1 | 7 |
| # | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Earnings Per Share (Rs) | 0 | 2.87 | 4.47 | 3.16 |
| CEPS(Rs) | 0 | 2.9 | 4.78 | 3.41 |
| DPS(Rs) | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 0.56 | 5.51 | 15.15 | 30.33 |
| Core EBITDA Margin(%) | 0 | 18.02 | 17.44 | 18.57 |
| EBIT Margin(%) | 0 | 19.97 | 16.62 | 18.06 |
| Pre Tax Margin(%) | 0 | 19.95 | 16.46 | 16.58 |
| PAT Margin (%) | 0 | 14.78 | 12.25 | 12.29 |
| Cash Profit Margin (%) | 0 | 14.96 | 13.08 | 13.28 |
| ROA(%) | 0 | 24.57 | 24.52 | 11.77 |
| ROE(%) | 0 | 99.45 | 49.39 | 15.46 |
| ROCE(%) | 0 | 63.24 | 54.5 | 21.56 |
| Receivable days | 0 | 192.26 | 83.62 | 124.65 |
| Inventory Days | 0 | 112.24 | 52.98 | 78.61 |
| Payable days | 0 | 117.06 | 79.52 | 63.61 |
| PER(x) | 0 | 0 | 0 | 6.17 |
| Price/Book(x) | 0 | 0 | 0 | 0.64 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0 | 0.22 | 0.25 | 0.28 |
| EV/Core EBITDA(x) | 0 | 1.09 | 1.44 | 1.45 |
| Net Sales Growth(%) | 0 | 0 | 249.52 | 1.01 |
| EBIT Growth(%) | 0 | 0 | 190.75 | 9.76 |
| PAT Growth(%) | 0 | 0 | 189.74 | 1.35 |
| EPS Growth(%) | 0 | 0 | 56.03 | -29.39 |
| Debt/Equity(x) | 0 | 1.18 | 0.04 | 0.06 |
| Current Ratio(x) | 0 | 1.96 | 2.67 | 5.48 |
| Quick Ratio(x) | 0 | 1.42 | 1.79 | 4.53 |
| Interest Cover(x) | 0 | 850.33 | 109.07 | 12.25 |
| Total Debt/Mcap(x) | 0 | 0 | 0 | 0.09 |
| # | Mar 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|
| Promoter | 63.18 | 63.18 | 49.68 |
| FII | 0 | 0 | 0 |
| DII | 0 | 0 | 0 |
| Public | 36.82 | 36.82 | 50.32 |
| Others | 0 | 0 | 0 |
| Total | 100 | 100 | 100 |
| # | Mar 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|
| Promoter | 0.33 | 0.33 | 0.33 |
| FII | 0 | 0 | 0 |
| DII | 0 | 0 | 0 |
| Public | 0.19 | 0.19 | 0.33 |
| Others | 0 | 0 | 0 |
| Total | 0.53 | 0.53 | 0.66 |
* The pros and cons are machine generated.
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