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Check Before You Invest : DCM Ltd

BSE: 502820 NSE: DCM ISIN: INE498A01018
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Spinning

Snapshot

Q.1 Which industry/sub-sector does DCM Ltd belong to?
DCM Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.
Q.2 Is DCM Ltd a good quality company?
DCM Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is DCM Ltd undervalued or overvalued?
DCM Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is DCM Ltd a good buy now?
DCM Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of DCM Ltd?
DCM Ltd revenue growth is -92.5% for FY-2025 , which is below its 5 year CAGR of -70.9% , indicating slower growth.
Q.2 Gross Profit margin of DCM Ltd?
DCM Ltd Gross profit margin which is the profit after deduction of direct costs, is 1798.7% for FY-2025 , which is above its 5 year median of 239.3% , indicating increasing margins.
Q.3 Operating Profit Margin of DCM Ltd?
DCM Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -2578.77% for FY-2025 , which is below its 5 year median of -1478.29% indicating decreasing margins.
Q.4 Net Profit Margin of DCM Ltd?
DCM Ltd Net Profit Margin is 565.78% for FY-2025 , is above with its 5 year median of -18.98%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 1798.7 239.3
Operating Profit Margin -2578.77 -1478.29
Net Profit Margin 565.78 -18.98
Q.5 Return on Asset of DCM Ltd?
DCM Ltd Return on Asset is 1.72(x), which is above its 5 year historical median of -0.71(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of DCM Ltd?
DCM Ltd Return on equity is 17.5% for FY-2025 , which is above its historical median of -8.65%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of DCM Ltd?
DCM Ltd Return on capital employed is 37.21% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of DCM Ltd?
DCM Ltd Cash conversion cycle is 11689 , above its historical median of 8419 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover - -
ROE 17.5 -8.65
ROCE 37.21 16.64
Cash Conversion Cycle 11689 8419
Q.9 Debt to Equity ratio of DCM Ltd?
DCM Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.36 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of DCM Ltd?
DCM Ltd Debt to cash flow from operations is 0 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of DCM Ltd?
Promoters hold 50.10% of the DCM Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of DCM Ltd vs industry peers?
DCM Ltd revenue CAGR is -70.88% , compared to the industry median CAGR of 1.47% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 0.3 118.3
Gross Profit - 3
Operating Profit -7 4.4
Net Profit 2 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover - 0.94
ROE 17.5 -
ROCE 37.21 5.99
Cash Conversion Cycle 11688.73 61

Valuation & price assessment

Q.1 Stock return of DCM Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of -2.6% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -2.6% 23.8% -1.2% -29%
Q.3 Valuation ratios of DCM Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 19.51
Price to Book 23.87 11.95 0.73
Price to Sales 676.33 53.83 0.34
EV to EBITDA 32.25 0.00 7.32

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