MoneyWorks4Me

Check Before You Invest : DCM Shriram International Ltd

BSE: 544702 NSE: DCMSIL ISIN: INE0OU201013
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does DCM Shriram International Ltd belong to?
DCM Shriram International Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is DCM Shriram International Ltd a good quality company?
DCM Shriram International Ltd is a weak quality company, based on a inconsistent 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 Shriram International Ltd undervalued or overvalued?
DCM Shriram International 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 0-year
Historic Median
Price to Earnings - 17.56
Price to Book 2.04 2.12
Price to Sales 1.65 2.44
EV to EBITDA 23.82 11.62
Q.4 Is DCM Shriram International Ltd a good buy now?
DCM Shriram International 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.

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

Q.1 Debt to Equity ratio of DCM Shriram International Ltd?
DCM Shriram International Ltd Debt-to-Equity ratio is 0.16, which is above the industry average of , indicating higher debt levels in the industry.

Q.2 Debt to cash flow from operations of DCM Shriram International Ltd?
DCM Shriram International Ltd Debt to cash flow from operations is 1.54, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of DCM Shriram International Ltd?

Q.1 Promoter shareholding and pledge status of DCM Shriram International Ltd?
Promoters hold 50.11% of the DCM Shriram International Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of DCM Shriram International Ltd vs industry peers?
DCM Shriram International Ltd revenue CAGR is %, compared to the industry median CAGR of 2.46%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - 2.5
Gross Profit Growth (%) -73.2 3
Operating Profit Growth (%) -79.3 0.1
Net Profit Growth (%) -119.4 1.9
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) 0.76 0.92
ROE (%) - 7.49
ROCE (%) - 10.12
Cash Conversion Cycle (days) 135.09 61

Valuation & price assessment

Q.1 Stock return of DCM Shriram International Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of DCM Shriram International Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 17.56, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings - 17.56 -
Price to Book 2.04 2.12 -
Price to Sales 1.65 2.44 -
EV to EBITDA 23.82 11.62 -

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