Danlaw Technologies India Ltd: 122% 3-Year Profit CAGR – The Connected Car Engineer That Finally Connected with Profits

1. At a Glance

Danlaw Technologies is a niche automotive electronics and connected car tech player. With a 5-year profit CAGR of 50.8%, ROE of 28.1%, and ROCE of 27.6%, this is one of the rare Indian auto-tech companies with both engineering credibility and financial muscle. The stock trades at a P/E of 27.4 — not cheap, but not nosebleed for its growth history.

2. Introduction

Founded in 1992, Danlaw Technologies India Ltd (DTIL) has lived through the days when “connected car” meant a dangling cassette tape aux wire. Today, it’s ISO 9001:2015 and IATF 16949-certified, developing automotive electronics and software solutions that power the connected vehicle ecosystem.

The company is one of the world’s largest suppliers of connected gadgets — think telematics, infotainment, driver assistance — all those invisible systems that make modern cars smarter than their drivers. Over the last decade, sales have grown at a 38% CAGR, profits at 35%, and the last three years have been a hockey-stick curve.

3. Business Model (WTF Do They Even Do?)

• Core Segments:
  • Connected car devices & automotive electronics.
  • Engineering & software consulting for OEMs.
• Value Prop: They’re not a generic IT services firm — they do