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INVESTMENT INSIGHTS

Check Before You Invest : DCM Shriram Ltd

BSE: 523367 NSE: DCMSHRIRAM ISIN: INE499A01024
  |   Sector:  Diversified   |   Industry:  Diversified

Snapshot

Q.1 Which industry/sub-sector does DCM Shriram Ltd belong to?
DCM Shriram Ltd belongs to the Diversified sector, operating specifically within the Diversified segment.
Q.2 Is DCM Shriram Ltd a good quality company?
DCM Shriram Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is DCM Shriram Ltd undervalued or overvalued?
DCM Shriram Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is DCM Shriram Ltd a good buy now?
DCM Shriram 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 Shriram Ltd?
DCM Shriram Ltd revenue growth is 10.5% for FY-2025 , which is above its 5 year CAGR of 9% , indicating faster growth.
Q.2 Gross Profit margin of DCM Shriram Ltd?
DCM Shriram Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.8% for FY-2025 , which is below its 5 year median of 13% , indicating decreasing margins.
Q.3 Operating Profit Margin of DCM Shriram Ltd?
DCM Shriram Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.74% for FY-2025 , which is below its 5 year median of 13.43% indicating decreasing margins.
Q.4 Net Profit Margin of DCM Shriram Ltd?
DCM Shriram Ltd Net Profit Margin is 4.81% for FY-2025 , is below with its 5 year median of 8.07%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 9.8 13
Operating Profit Margin 10.74 13.43
Net Profit Margin 4.81 8.07
Q.5 Return on Asset of DCM Shriram Ltd?
DCM Shriram Ltd Return on Asset is 4.03%, which is below its 5 year historical median of 7.68%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of DCM Shriram Ltd?
DCM Shriram Ltd Return on equity is 8.33% for FY-2025 , which is below its historical median of 15.06%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of DCM Shriram Ltd?
DCM Shriram Ltd Return on capital employed is 11.18% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 13.5%, indicating value preservation.
Q.8 Cash conversion cycle of DCM Shriram Ltd?
DCM Shriram Ltd Cash conversion cycle is 60 days, below its historical median of 63 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.91 0.98
ROE 8.33 15.06
ROCE 11.18 16.09
Cash Conversion Cycle 60 days 63 days
Q.9 Debt to Equity ratio of DCM Shriram Ltd?
DCM Shriram Ltd Debt-to-Equity ratio is 0.34 , which is above with the industry average of 0.21 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of DCM Shriram Ltd?
DCM Shriram Ltd Debt to cash flow from operations is 2.19 , which is at a moderate level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of DCM Shriram Ltd?
Promoters hold 66.52% of the DCM Shriram Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of DCM Shriram Ltd vs industry peers?
DCM Shriram Ltd revenue CAGR is 8.95% , compared to the industry median CAGR of 8.95% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 11,778 58
Gross Profit 1,154.2 4.5
Operating Profit 1,265 5.8
Net Profit 567 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.91 0.83
ROE 8.33 5.7
ROCE 11.18 8.07
Cash Conversion Cycle (days) 59.77 54

Valuation & price assessment

Q.1 Stock return of DCM Shriram Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 20.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 20.8% 16.9% 9.7% 7.8%
Q.3 Valuation ratios of DCM Shriram Ltd vs historical?
The current P/E is higher 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 27.15 10.23 137.53
Price to Book 2.34 1.45 1.73
Price to Sales 1.29 0.80 1.23
EV to EBITDA 10.96 6.88 9.33

Check more companies

1. DCM Shriram
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3. Balmer Lawrie & Co
4. Kothari Indl. Corp
5. TTK Healthcare
6. Empire Inds
7. Gillanders Arbuthnot
8. Aspinwall & Co
9. TCI Industries
10. ANI Integrated Serv.
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