Check Before You Invest : DCM Ltd

Q: 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: Is DCM Ltd a good quality company?

DCM Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is DCM Ltd undervalued or overvalued?

DCM Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: -, Historic Median: -. Price to Book, Current: 28.97, Historic Median: 24.36. Price to Sales, Current: 820.84, Historic Median: 139.81. EV to EBITDA, Current: 39.38, Historic Median: 13.26

Q: Is DCM Ltd a good buy now?

DCM Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of DCM Ltd?

DCM Ltd revenue growth is -92.5% for FY-2025, which is below its 5-year CAGR of -70.88%, indicating slower growth.

Q: 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: 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: Net Profit Margin of DCM Ltd?

DCM Ltd Net Profit Margin is 565.78% for FY-2025, is above its 5-year median of -18.98%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 1798.7, Historic Median: 239.3. Operating Profit Margin (%), Current: -2578.77, Historic Median: -1478.29. Net Profit Margin (%), Current: 565.78, Historic Median: -18.98

Q: Return on Asset of DCM Ltd?

DCM Ltd Return on Asset is 1.72%, which is above its 5-year historical median of -0.71%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of DCM Ltd?

DCM Ltd Return on capital employed is 37.21% for FY-2025, which is above its 5-year historical median of 16.64%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : DCM Ltd

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 average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is DCM Ltd undervalued or overvalued?

DCM Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	-	-
Price to Book	28.97	24.36
Price to Sales	820.84	139.81
EV to EBITDA	39.38	13.26

Q.4 Is DCM Ltd a good buy now?

DCM Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 -70.88%, 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 its 5-year median of -18.98%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	1798.7	239.3
Operating Profit Margin (%)	-2578.77	-1478.29
Net Profit Margin (%)	565.78	-18.98

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of DCM Ltd?

DCM Ltd Return on Asset is 1.72%, which is above its 5-year historical median of -0.71%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of DCM Ltd?

DCM Ltd Return on capital employed is 37.21% for FY-2025, which is above its 5-year historical median of 16.64%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of DCM Ltd?

DCM Ltd Return on equity is 17.5% for FY-2025, which is above its 5-year historical median of -8.65%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of DCM Ltd?

DCM Ltd Cash conversion cycle is 11689 days, above its 5-year historical median of 8419 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	-	0.32
ROE (%)	17.5	-8.65
ROCE (%)	37.21	16.64
Cash Conversion Cycle	11689 days	8419 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of DCM Ltd?

DCM Ltd Debt-to-Equity ratio is 0.00, which is lower 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.

Ownership & governance

D: Promoter shareholding and pledge status of DCM Ltd?

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)

E: How does DCM Ltd performance compare with that of its Peers?

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	5-year Industry Median
Revenue Growth (%)	-92.5	1.5
Gross Profit Growth (%)	66.7	1.8
Operating Profit Growth (%)	0	-1.5
Net Profit Growth (%)	0	2.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	-	0.94
ROE (%)	17.5	-
ROCE (%)	37.21	5.99
Cash Conversion Cycle (days)	11688.73	61

Valuation & price assessment

Q.1 Stock return of DCM Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -1.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-1.7%	25.9%	9.1%	-14.9%

Q.2 Valuation ratios of DCM Ltd vs historical?

The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	-	9.43
Price to Book	28.97	24.36	0.72
Price to Sales	820.84	139.81	0.40
EV to EBITDA	39.38	13.26	7.20

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Check Before You Invest : DCM Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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