Could DVP (Develop Global Ltd) Be the Next ASX Multibagger?

In the dynamic world of ASX small- and mid-cap stocks, investors are always hunting for the elusive “multibagger”—a company that multiplies in value several times over. In 2025, Develop Global Ltd (ASX: DVP) is beginning to catch that attention. With a strong earnings turnaround, large-scale project momentum, and active insider support, DVP is quickly positioning itself as a serious contender for growth-focused investors. But what exactly is fueling this optimism, and could DVP realistically become the next multibagger on the ASX?

Earnings Turnaround: From Losses to Profit

The most immediate reason investors are taking note of DVP is its remarkable turnaround in profitability. After years of operating losses, the company posted strong net profits in FY2025, signaling that strategic changes and operational improvements are paying off.

1. Revenue growth: Sales jumped to $231.5 million, a significant improvement from prior years.
2. Profit surge: Net income reached $72.4 million, swinging dramatically from a previous-year loss.
3. Improved margins: Return on equity and profit margins have both increased, thanks to scale efficiencies and smarter project execution.

These results are underpinned by strong cash flows, providing the company with financial flexibility to reinvest in growth projects without over-relying on external funding.

Investor confidence is further reinforced by insider activity. Director William Beament, a respected mining and project management veteran, recently increased his shareholding, signaling high internal confidence in DVP’s trajectory. Insider buying is often a strong indicator that those closest to the business genuinely believe in its potential.

Project Momentum: Mining and Services Growth

Develop Global’s growth story is also tied closely to its project pipeline, particularly its mining and mining services divisions.

Sulphur Springs Copper-Zinc Project

One of DVP’s crown jewels is the Sulphur Springs project in Western Australia, a significant copper-zinc resource at an advanced stage of permitting. Analysts highlight that if commodity prices remain supportive, the project could generate substantial forward sales and EBITDA growth. This makes DVP more than just a services company; it has the potential to become a miner with tangible resource leverage, amplifying its growth prospects.

Mining Services Division

In addition to its resource projects, DVP’s mining services division continues to secure major contracts, adding recurring revenue streams that smooth earnings volatility. This combination of project development upside and stable services income creates a balanced growth profile for investors.

Pipeline Expansion

Management is not resting on its laurels. Strategic investments and high-profile hires aim to double both sales and net profit by 2027, according to current plans. This aggressive yet structured expansion provides a blueprint for the kind of exponential growth that often characterizes multibagger candidates.

Insider Support and Market Confidence

Investor sentiment around DVP is strengthened by high levels of insider ownership—more than 12% of shares are held by management and directors. Active insider buying demonstrates belief in the business and often precedes major operational achievements or share price re-rating.

Brokers are also bullish. Bell Potter and other notable analysts have placed DVP firmly in the “buy zone” as of October 2025, emphasizing both its strong operational rebound and long-term growth strategy.

Technically, DVP’s share price has climbed over 12% in the past two months and remains above its 200-day moving average, a milestone that often indicates institutional strength and potential for sustained upward momentum.

Risks and Considerations

Of course, no investment is without risks, and potential DVP investors should be mindful of a few key points:

1. Shareholder dilution: Past equity raisings have helped fund growth, but if additional capital is required for large-scale project development, further dilution could impact returns.
2. Commodity price volatility: DVP’s Sulphur Springs project and mining services revenues are influenced by copper, zinc, and broader commodity markets. Downturns could temporarily affect earnings.
3. Non-cash earnings: Recent profitability includes some non-cash accounting items. Investors should focus on operating cash flows to assess the company’s underlying financial health.

Understanding these risks is crucial for patient, growth-minded investors looking to ride a potential multibagger wave.

Could DVP Become a Multibagger?

So, does Develop Global have what it takes to deliver multibagger returns? Several elements suggest the potential is real:

1. Turnaround profits: Moving from loss to significant net income in FY2025 demonstrates operational capability and financial discipline.
2. Project leverage: Sulphur Springs provides optionality for exponential growth if copper-zinc markets remain strong.
3. Recurring revenue from services: Stabilizes cash flows while larger projects mature.
4. Strong insider confidence: Directors buying into the company signals belief in long-term value creation.
5. Analyst support and technical momentum: Brokers highlight its upside potential, and key technical indicators suggest institutional accumulation.

If DVP continues to hit operational milestones, manage costs effectively, and maintain commodity exposure to favorable market conditions, it could emerge as one of the ASX’s standout performers in 2025 and beyond.

Conclusion: A Stock Worth Watching

Develop Global Ltd (ASX: DVP) is showing many hallmarks of a classic ASX multibagger: a strong earnings turnaround, credible leadership, insider support, and tangible project momentum in Western Australia’s mining sector.

While risks exist — particularly around commodity volatility and potential equity dilution — the company’s growth blueprint, combined with a mix of stable recurring revenue and high-upside development projects, makes it compelling for patient investors seeking early-stage growth potential.

Key indicators to watch include:

1. Ongoing project development updates, particularly from Sulphur Springs.
2. Operational results and cash flow trends in mining services.
3. Insider buying activity, often a precursor to major share price moves.

For investors with a long-term horizon and appetite for growth, DVP could well be on its way to becoming a multibagger, making 2025 an exciting year for this rising ASX stock.

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