Divyadhan Recycling Industries (NSE:DIVYADHAN) Beneish M-Score: -1.70 (As of Aug. 31, 2026)

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NSE:DIVYADHAN Divyadhan Recycling Industries Ltd NSE:DIVYADHAN
17 GF Score
Price ₹41.90
! 4 Warning Signs
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What is Divyadhan Recycling Industries Beneish M-Score?

Divyadhan Recycling Industries NSE:DIVYADHAN -9.70% 17 Beneish M-Score is -1.70 as of Aug. 31, 2026. GuruFocus rates NSE:DIVYADHAN with a GF Score™ of 17/100. The stock has 4 warning signs investors should review. Among 1,003 Manufacturing - Apparel & Accessories companies, Divyadhan Recycling Industries ranks worse than 82.35% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.7 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Divyadhan Recycling Industries's Beneish M-Score or its related term are showing as below:

NSE:DIVYADHAN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.64   Med: -2.67   Max: -1.7
Current: -1.7

During the past 5 years, the highest Beneish M-Score of Divyadhan Recycling Industries was -1.70. The lowest was -3.64. And the median was -2.67.

Divyadhan Recycling Industries Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Divyadhan Recycling Industries's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Divyadhan Recycling Industries Beneish M-Score Chart

Divyadhan Recycling Industries Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
Beneish M-Score
0.00 0.00 -3.64 0.00 -1.70

Divyadhan Recycling Industries Semi-Annual Data
Mar21 Mar22 Mar23 Mar24 Mar25
Beneish M-Score 0.00 0.00 -3.64 0.00 -1.70

Divyadhan Recycling Industries Beneish M-Score Competitor Comparison

For the Textile Manufacturing subindustry, Divyadhan Recycling Industries's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Divyadhan Recycling Industries Beneish M-Score vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Divyadhan Recycling Industries's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Divyadhan Recycling Industries's Beneish M-Score falls into.


NSE:DIVYADHAN
17GF Score
Divyadhan Recycling Industries Ltd NSE:DIVYADHAN
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Divyadhan Recycling Industries Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Divyadhan Recycling Industries for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.263+0.528 * 0.8173+0.404 * -1.25+0.892 * 1.0597+0.115 * 0.7735
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.0848+4.679 * 0.317201-0.327 * 0.3347
=-1.70

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar25) TTM:Last Year (Mar24) TTM:
Total Receivables was ₹45.6 Mil.
Revenue was ₹594.8 Mil.
Gross Profit was ₹67.5 Mil.
Total Current Assets was ₹208.6 Mil.
Total Assets was ₹420.3 Mil.
Property, Plant and Equipment(Net PPE) was ₹211.7 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹12.8 Mil.
Selling, General, & Admin. Expense(SGA) was ₹8.2 Mil.
Total Current Liabilities was ₹64.2 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0.0 Mil.
Net Income was ₹15.4 Mil.
Gross Profit was ₹0.0 Mil.
Cash Flow from Operations was ₹-118.0 Mil.
 Total Receivables was ₹34.0 Mil.
Revenue was ₹561.3 Mil.
Gross Profit was ₹52.1 Mil.
Total Current Assets was ₹118.2 Mil.
Total Assets was ₹241.2 Mil.
Property, Plant and Equipment(Net PPE) was ₹123.0 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹5.7 Mil.
Selling, General, & Admin. Expense(SGA) was ₹3.7 Mil.
Total Current Liabilities was ₹105.3 Mil.
Long-Term Debt & Capital Lease Obligation was ₹4.8 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(45.57 / 594.823) / (34.046 / 561.299)
=0.076611 / 0.060656
=1.263

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(52.065 / 561.299) / (67.508 / 594.823)
=0.092758 / 0.113493
=0.8173

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (208.597 + 211.68) / 420.279) / (1 - (118.233 + 122.979) / 241.211)
=5.0E-6 / -4.0E-6
=-1.25

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=594.823 / 561.299
=1.0597

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(5.685 / (5.685 + 122.979)) / (12.824 / (12.824 + 211.68))
=0.044185 / 0.057121
=0.7735

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(8.232 / 594.823) / (3.726 / 561.299)
=0.013839 / 0.006638
=2.0848

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0 + 64.186) / 420.279) / ((4.808 + 105.267) / 241.211)
=0.152722 / 0.456343
=0.3347

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(15.362 - 0 - -117.951) / 420.279
=0.317201

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Divyadhan Recycling Industries has a M-score of -1.70 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.70 mean?
Divyadhan Recycling Industries (NSE:DIVYADHAN) has a Beneish M-Score of -1.70 as of Aug. 31, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Divyadhan Recycling Industries and its competitors. According to the industry distribution chart, Divyadhan Recycling Industries ranks #826 out of 1003 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 82.4%.
Is Divyadhan Recycling Industries' Beneish M-Score too high?
Divyadhan Recycling Industries' current Beneish M-Score is -1.70. Based on the distribution chart, Divyadhan Recycling Industries ranks #826 out of 1003 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Divyadhan Recycling Industries has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Divyadhan Recycling Industries' Beneish M-Score compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Divyadhan Recycling Industries ranks #826 out of 1003 companies for Beneish M-Score. This places Divyadhan Recycling Industries in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Manufacturing - Apparel & Accessories company?
A good Beneish M-Score depends on the Manufacturing - Apparel & Accessories industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Divyadhan Recycling Industries and its competitors. Divyadhan Recycling Industries's current Beneish M-Score is -1.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Divyadhan Recycling Industries stock overvalued right now?
Divyadhan Recycling Industries (NSE:DIVYADHAN) has a current Beneish M-Score of -1.70. The current Beneish M-Score is -1.70. Divyadhan Recycling Industries' overall GF Score™ is 17/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Divyadhan Recycling Industries (NSE:DIVYADHAN), the current Beneish M-Score is -1.70 as of Aug. 31, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Divyadhan Recycling Industries Business Description

Address Saki Vihar Road, 1803, Lodha Supremus, Opposite Telephone Exchange, Powai, Mumbai, MH, IND, 400072
Divyadhan Recycling Industries Ltd is in the business of manufacturing of Recycled Polyester Staple Fibre (R-PSF) and Recycled Pellets. The recycled fibre and pellets are produced from post-consumer PET bottles also known as Polyethylene Terephthalate bottles. The company produces hollow and solid recycled polyester staple fibre, which has good resilience properties and makes premium pillows, cushions, and quilts. The recycled fibre is supplied to various industries such as Packaging, home furnishing and Textiles.
17GF Score

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