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DCM Shriram Ltd. Stock Analysis

Mid Cap
Evaluated by 1069 users | BSE: 523367 | NSE: DCMSHRIRAM |
Diversified
DCM Shriram Consolidated (DSCL) was founded by Sir Shriram in 1889 as Delhi Cloth & General Mills Company (DCM). It runs two businesses -- energy intensive and agri business.The company's manufacturing plant are located at Kota (Rajasthan), Bharuch (Gujarat), and Ajbapur, Rupapur, Hariawan...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
DCM Shriram Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 1.39%4.04%11.46%12.98%11.83%14.56%18.51%19.78%21.73%14.88%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4,0824,9565,4006,0825,5005,7355,7326,8077,6847,672
Y-o-Y Gr. Rt.-21.4%9%12.6%-9.6%4.3%-0.1%18.7%12.9%-0.2%
Adjusted EPS (Rs.) -1.910.614.1316.6315.0622.3335.6741.7957.3547.3
Y-o-Y Gr. Rt.-NA2255%17.7%-9.4%48.3%59.7%17.2%37.2%-17.5%
Book Value per Share (Rs.) 76.0474.7284.41102.63114.34131.58156.4189.04227.8263.24
Adjusted Net Profit -31.710234271245363579679894738
Net Op. Cash Flow (Rs. Cr.) -55.7308274961186128791812799502
Debt to Cash Flow from Ops -29.985.815.571.248.261.360.932.024.28
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
DCM Shriram Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.3%6.9%10.2%-0.2%
Adjusted EPS NA25.7%9.9%-17.5%
Book Value per Share 14.818.21915.6
Share Price 24.8% 23.6% -14.1% -14.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -2.490.817.7517.6613.8518.1624.7724.227.0119.26
Operating Profit Margin (%) 4.656.029.638.797.739.613.9115.3117.8315.65
Net Profit Margin (%) -0.780.24.344.464.456.3210.119.9711.649.62
Debt to Equity 1.321.441.090.690.40.50.420.250.450.52
Working Capital Days 134148173166180194215187177204
Cash Conversion Cycle 63746744476572636385
Entity Percentage Holding
Promoters 66.53%
Institutions 12.82%
Non-Institutions 20.62%
Pledged *0.000.000.000.000.0076.6576.650.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of DCM Shriram Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that DCM Shriram Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of DCM Shriram Ltd.'s performance infers:

DCM Shriram Ltd. earnings have grown by 25.7%, whereas share price has appreciated 23.6% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of DCM Shriram Ltd. share prices over the last 10 years. Here is what we found out:

DCM Shriram Ltd. share price has appreciated 21.1% annually over the past ten years.

DCM Shriram Consolidated (DSCL) was founded by Sir Shriram in 1889 as Delhi Cloth & General Mills Company (DCM). It runs two businesses -- energy intensive and agri business.

The company's manufacturing plant are located at Kota (Rajasthan), Bharuch (Gujarat), and Ajbapur, Rupapur, Hariawan and Loni (UP).

DSCL's agri business has a network of 30 sales offices, 12 distribution warehouses, 200 wholesales and 4800 retail

DCM Shriram Consolidated (DSCL) was founded by Sir Shriram in 1889 as Delhi Cloth & General Mills Company (DCM). It runs two businesses -- energy intensive and agri business.

The company's manufacturing plant are located at Kota (Rajasthan), Bharuch (Gujarat), and Ajbapur, Rupapur, Hariawan and Loni (UP).

DSCL's agri business has a network of 30 sales offices, 12 distribution warehouses, 200 wholesales and 4800 retail outlets.

The company is also the third largest manufacturer of Chlor-Alkali in the India.

The company had launched value added UPVC window system business under the Fenesta TM brand in India. This product has very attractive design and insulation attributes that makes it strong business proposition as the concept is gaining acceptability.

Businesses

Agri business- The company is engaged into production of sugar, agri inputs, urea and hybrid seeds. Its sugar plant has installed capacity of 33,000 tonnes crushed daily and a 94.5 MW capacity captive power plant.

DSCL's agri-inputs business produces a range of urea fertilizers, other fertilizers, pesticides and other agri-related products. Its urea plant has a production capacity of 379,000 TPA, this also includes 700 TPD of ammonia. DSCL markets these products under the name 'Shriram'.

It offers a range of hybrid seeds through its subsidiary Shriram BioSeed Genetics India. Presently the company deals in corn, bajra (pearl millet), jowar, paddy, BT cotton, vegetables and sunflower seeds. It also operates its seed business in Vietnam, Philippines and Thailand.

It operates 'Hariyali Kisaan Bazaar' -- a rural business centre to empower the farmer by providing all encompassing solutions to the farmers under one roof.

Energy Intensive business- Under this head, it produces chemicals, PVC resins, calcium carbide and cement. It produces chemicals like chlor-alkalis, caustic soda lye & flakes, liquid and gaseous chlorine, hydrochloric acid, stable bleaching powder, compressed hydrogen and sodium hypochlorite.

It manufactures PVC resins and has installed capacity of 70,000 TPA. It calcium carbide plant has production capacity of 1,08,500 TPA. The cement plant has production capacity of 400,000 TPA and the product under the brand name “Shriram”.

Others businesses- It also engaged in the manufacture of PVC compounds and textiles.

Award and Recognition

The Hariyali division of the company was awarded “ACE-Best Customer Award” for successful implementation of the SAP IS retail package.

The company has received various certifications such as ISO 9001-2000, ISO 14001-2004 and OHAS 18001-2007 for its Occupational Health and Safety systems.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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