Danlaw Technologies India

Futuristic Company which offers a range of products and services, including interior electronics, lighting, HVAC controls and fleet services support with intelligent telematics solutions.

Danlaw Technologies India is a companintelligent telematics solutions that specializes in connected cars and automotive electronics. It offers a range of products and services, including interior electronics, lighting, HVAC controls, switches, door locks, and more. Danlaw also provides testing and validation, software development, and cutting-edge technology solutions.

Products and Services

• Telematics Control Unit (TCU) - 2G: Generates real-time vehicle alerts, collects GPS data, processes it, and sends it to a back-end server for vehicle diagnostics and tracking.

• Telematics Control Unit (TCU) - 4G: A high-end, compact vehicle tracking and fleet management device.

• Data Logger: An IoT device that securely collects and transmits vehicle and sensor data via cellular or Bluetooth™ connection.

• Body Control Products: Responsible for monitoring and controlling various electronic accessories in a vehicle, such as door locks, turn signals, and interior lighting.

• Diagnostic Tool: An advanced PC application used for ECU diagnostics and flashing, supporting live data monitoring and parameter adjustments.

• Danlaw Cloud Support: Collects and transmits crucial fleet information, such as vehicle location, speed, engine diagnostics, and more, to the cloud for efficient fleet management.

Danlaw partners with Darby to deliver seamless customer experiences. Their intelligent telematics solutions provide insights into customer driving habits, enabling personalized insurance premiums and enhanced customer experiences.

Financial Overview (As of Recent Updates)

• Market Cap: ₹981 Crore

• P/E Ratio: 44.5 (Industry P/E: 77.10) - Lowest in Peer Group

• Promoter Holding: 61.90% (Increased from 49.93% in June 2023)

• Cash Flow from Operations: ₹24 Crore

• Price to Sales Ratio: 4.63

• Net Profit (Annualized): ₹22.20 Crore

Financial Performance

• Sales: Increased from ₹28 Crore to ₹211 Crore (Mar 2021 to Mar 2024, TTM ₹212 Crore)

• Net Profit: Rose from (-₹3 Crore) to ₹22 Crore (Mar 2021 to Mar 2024, TTM ₹22 Crore)

• EPS: Increased from (-₹7.26) to ₹45.64 (Mar 2021 to Mar 2024, TTM ₹45.24)

• Market Price: Rose from ₹309 to ₹1926 (Mar 2021 to Mar 2024, CMP ₹2013)

Recent Collaborations

• PikeTec Collaboration: Danlaw partnered with PikeTec to deliver TPT (Testing and Programming Tool) software and services to the North American market, focusing on enhancing safety and quality in automotive software systems.

• Maspatechnologies Acquisition: Danlaw acquired Maspatechnologies, significantly enhancing its subsidiary Rapita Systems’ capabilities, particularly in multicore automotive systems.

These collaborations align with Danlaw's strategy to expand its technological footprint and improve its offerings in the automotive electronics and connected car sectors.

Expansions

Danlaw continues to strengthen its portfolio with key collaborations and has expanded into sectors like HVAC controls, interior electronics, and automotive lighting, while also offering testing, validation, and software development services.

Prospects

• The company has reduced debt.

• It has delivered impressive profit growth of 135% CAGR over the last 5 years.

• Danlaw maintains a strong return on equity: 30.5% over the last 3 years.

• Median sales growth of 26.2% over the past 10 years.

Challenges

• The stock is trading at 17 times its book value.

• Despite reporting consistent profits, the company has not paid out dividends.

• There may be concerns about capitalizing interest costs.

Chart

Technical Analysis

On the weekly chart, consolidation seems completed, with the stock trading above 20-days, 50-days and 200-day SMAs and price already approaching all-time high. The performance is likely to continue the trend. (This is not a recommendation and please refer the disclaimer also)

Conclusion

Danlaw Technologies India shows strong performance and growth potential across all its business segments. Ongoing expansions are expected to further enhance future results. However, limited information from conference calls could be a concern. Overall, Danlaw is well-positioned in the market, and as public awareness of road safety and fleet services grows, the company is likely to continue its robust performance.

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