Dynemic Products Limited (DYNPRO) AI Stock Analysis

Dynemic Products Limited

(NSE:DYNPRO)

Select Model

Rating:54Neutral

Price Target:INR 241.00▲(5.38% Upside)

Action:reiterated

Date:09/06/26

Dynemic Products earns a below-average score driven primarily by inconsistent profitability. While the balance sheet has strengthened impressively through aggressive debt reduction and operating cash flow has stayed positive even through a loss year, net margins remain in the low-to-mid single digits, ROE is a modest 8.1%, and gross margins swing severely with raw material costs. Revenue growth also decelerated sharply to ~3.1% in FY2026. Technically, the stock is in a neutral consolidation — trading just below all major moving averages with slightly negative MACD momentum and a neutral RSI — offering no directional support. The most supportive element is valuation: a P/E of 14.3 is inexpensive, though earned on depressed profits and with no dividend to cushion returns. Sustained margin expansion and a return to stronger revenue growth are the key catalysts needed to re-rate the stock. Weights were set at 55% financial performance, 25% technicals and 20% valuation, with earnings call and corporate events excluded for lack of data and their weight redistributed proportionally.

Positive Factors

Lower LeverageThe substantial reduction in leverage, alongside equity growth from 1.56B to 2.45B, strengthens financial resilience. Lower debt dependence should improve capacity to absorb chemical-cycle volatility and fund operations over the next several quarters.

Negative Factors

Margin VolatilityLarge swings in gross margin indicate exposure to raw-material costs, pricing pressure and product mix. This limits earnings predictability and could prevent the recent profit recovery from translating into consistently stronger returns across the chemical cycle.

Dynemic Products Limited (DYNPRO) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 2.87B
Dividend Yield: 0.66%
Average Volume (3M): 960
Price to Earnings (P/E): 14.0
Beta (1Y): 1.07
Revenue Growth: 9.37%
EPS Growth: 25.43%
Country: India
Employees: 464
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Dynemic Products Limited Business Overview & Revenue Model

Company Description

Established in 1990 and headquartered in Ahmedabad, India, Dynemic Products Limited specializes in the manufacturing and sale of a diverse range of dyes and dye intermediates. Its extensive product catalog includes food colors, predominantly utilized...

How the Company Makes Money

Dynemic Products Limited makes money primarily by manufacturing and selling dyes, dye intermediates, and specialty chemicals to business customers (B2B). Revenue is generated from (1) sale of finished dyes/colorants, where the company earns a margin...

Dynemic Products Limited Financial Statement Overview

Summary

Financials reflect a mid-stage turnaround. The clear strength is deleveraging — debt-to-equity fell from 1.02x (FY2022) to 0.30x (FY2026) as debt dropped to ₹727M and equity grew to ₹2.45B, materially reducing financial risk (Balance Sheet: 58). Cash flow is steady, with operating cash flow positive throughout — even in the loss-making FY2023 — and free cash flow of ₹213M in FY2026 converting ~84% of net income, though debt coverage from operations remains modest at ~17% (Cash Flow: 55). The weakest link is the income statement (45): despite revenue growth from ₹2.01B to ₹3.79B, profitability has been erratic — a net loss in FY2023, a 1.3% margin in FY2024, and only ~5.3% in FY2026 versus 14.1% in FY2021. Gross margins have swung wildly (5.9% to 47.4%) on raw material volatility, ROE remains subdued at 8.1%, and FY2026 revenue growth decelerated sharply to ~3.1% from 29%.

Income Statement

45Neutral

Balance Sheet

58Neutral

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.69B	3.79B	3.61B	2.80B	2.89B	2.43B
Gross Profit	1.53B	1.42B	1.71B	623.96M	170.28M	564.46M
EBITDA	520.49M	527.05M	483.00M	304.02M	240.32M	409.07M
Net Income	203.24M	199.43M	150.00M	36.18M	-29.40M	142.98M
Balance Sheet
Total Assets	0	4.13B	4.16B	4.00B	4.12B	4.15B
Cash, Cash Equivalents and Short-Term Investments	12.06M	11.23M	23.82M	17.71M	19.89M	22.94M
Total Debt	0	727.42M	958.75M	1.15B	1.48B	1.74B
Total Liabilities	-2.45B	1.67B	1.92B	1.97B	2.29B	2.44B
Stockholders Equity	2.45B	2.45B	2.24B	2.03B	1.83B	1.70B
Cash Flow
Free Cash Flow	205.61M	212.51M	215.16M	274.90M	238.39M	-146.44M
Operating Cash Flow	229.10M	252.54M	284.31M	302.74M	247.68M	396.86M
Investing Cash Flow	-11.19M	-12.20M	-59.26M	-6.45M	-7.94M	-549.24M
Financing Cash Flow	-216.37M	-234.20M	-243.97M	-304.25M	-262.22M	122.37M

Dynemic Products Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price228.70

Price Trends

50DMA230.44Negative

100DMA234.32Negative

200DMA230.84Negative

Market Momentum

MACD-0.20Positive

RSI47.57Neutral

STOCH27.32Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DYNPRO, the sentiment is Negative. The current price of 228.70 is below the 20-day moving average (MA) of 231.16, below the 50-day MA of 230.44, and below the 200-day MA of 230.84, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 27.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DYNPRO.

Dynemic Products Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:DYNPRO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PODDARMENT	60Neutral	INR 2.79B	18.11	―	1.53%	3.55%	-21.35%
IN:ASAHISONG	59Neutral	INR 4.36B	12.53	―	0.41%	-0.60%	96.35%
IN:BODALCHEM	57Neutral	INR 20.74B	30.19	―	―	27.57%	135.05%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:DYNPRO	54Neutral	INR 2.84B	14.01	―	0.66%	9.37%	25.43%
IN:SRD	54Neutral	INR 2.50B	13.67	―	0.13%	12.41%	51.78%

* General Sector Average

Performance Comparison

IN:DYNPRO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:DYNPRO	Dynemic Products Limited	228.70	-72.38	-24.04%
IN:ASAHISONG	Asahi Songwon Colors Ltd.	370.00	86.70	30.60%
IN:BODALCHEM	Bodal Chemicals Limited	164.70	102.36	164.20%
IN:SUDARCOLOR	Heubach Colorants India Limited	370.95	-146.90	-28.37%
IN:PODDARMENT	Poddar Pigments Limited	262.80	-8.53	-3.14%
IN:SRD	Shankar Lal Rampal Dye-Chem Ltd.	39.02	-28.64	-42.33%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 06, 2026

Dynemic Products Limited AI Stock Analysis