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DCM Shriram Ltd Stock Analysis

Mid Cap
Evaluated by 1133 users | BSE: 523367 | NSE: DCMSHRIRAM |
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DCM Shriram was founded by Sir Shriram in 1889 as Delhi Cloth & General Mills Company (DCM). DCM Shriram is a spin-off from trifurcation of the reputed erstwhile DCM Group in 1990.

DCM Shriram has...

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 37.1% 33.2% 38.1% 179.4%
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 12.09%
Non-Institutions 21.37%
Pledged *0.000.000.0076.6576.650.000.000.000.000.00
* 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 33.2% CAGR over the past five years, indicating the company's share price is likely overvalued. 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 31.8% annually over the past ten years.

DCM Shriram was founded by Sir Shriram in 1889 as Delhi Cloth & General Mills Company (DCM). DCM Shriram is a spin-off from trifurcation of the reputed erstwhile DCM Group in 1990.

DCM Shriram has manufacturing facilities of Fertiliser, Chloro Vinyl & Cement in Kota (Rajasthan) and of Chlor- Alkali in Bharuch (Gujrat). The company operates coal-based captive power, facilities - in Kota and Bharuch

DCM Shriram was founded by Sir Shriram in 1889 as Delhi Cloth & General Mills Company (DCM). DCM Shriram is a spin-off from trifurcation of the reputed erstwhile DCM Group in 1990.

DCM Shriram has manufacturing facilities of Fertiliser, Chloro Vinyl & Cement in Kota (Rajasthan) and of Chlor- Alkali in Bharuch (Gujrat). The company operates coal-based captive power, facilities - in Kota and Bharuch (Gujarat). DCM Shriram Sugar factories are located in Ajbapur, Rupapur, Hariawan and Loni in Uttar Pradesh. It also has added two Distilleries. The Hybrid seed operations- ‘Bioseed’ started in Hyderabad (India) and have a global footprint with presence in South-East Asia with research facilities. Fenesta windows fabrication units are located in Bhiwadi, Mumbai, Hyderabad and Chennai.

Fenesta windows fabrication units are located in Bhiwadi, Hyderabad and Chennai. All its main line locations/products have ISO 9001 & 14001 (Quality & Environment Systems) and OHSAS 18001 (Occupational Health and Safety Standards) in its facilities. DCM Shriram has well defined processes in all its manufacturing facilities.  Continuous improvements are made through global benchmarking, TQM, TPM, etc. There is a strong and proactive focus on safety, health and environment.  Some of the facilities have received international recognition such as British Safety Council Sword of Honour etc.

Business area of the company

  • The business portfolio of DCM Shriram comprises primarily of:
  • Agri-Rural Business: Urea, Farm Inputs such as Crop care Chemicals, Plantrition Nutrition Speciality Products and Hybrid Seeds.
  • Chlor-Vinyl Business: Caustic Soda, Chlorine,Calcium Carbide, PVC resins, PVC Compounds, Power and Cement.
  • Value added business: Fenesta Building Systems- UPVC Windows & Doors.

Awards and recognitions

  • 1990-1991 FAI's Runner up Award for 'Best production performance Nitrogenous Fertilizer Unit' presented to SFC, Kota
  • 1991-92 National Award for,' Public Recognition of Outstanding Activity For Prevention & Control Of Pollution' for DCM Shriram Kota Complex
  • 1993-1994 FAI's Award for ' Best Productivity Performance of Nitrogenous Fertilizer Unit' presented to SFC, Kota
  • 2000-2001 National Award for Energy Efficiency presented to SFC Kota and SAC Bharuch
  • 2002 National Energy Conservation Award presented to SAC Bharuch
  • 2002-2003 First TERI (Tata Energy Research Institute) Award for Environment Conservation presented to SAC Bharuch
  • 2003-2004 Greentech Safety Award presented to Shriram Fertilizers and Chemicals, Kota, Shriram Cement works, Shriram Vinyl and Chemical Industries, Kota and SAC Bharuch
  • 2005-2006 Sword of Honour' , Award by British Safety Council presented to SFC, Kota
  • 2005 -2006 DSCL Sugar won the First Prize in Energy Conservation in Sugar Sector from the Ministry of Power, Govt. of India
  • 2008-2009  Sword of Honour from British Safety Council presented to SFC, Kota
  • 2009-2010  Golden Dragon Award presented to Bioseed Vietnam Ltd. for success of foreign invested enterprises & Contribution to Vietnam economy
  • 2009-2010  Sword of Honour by British Safety Council for Best practices in occupational health and safety management presented to SFC, Kota
  • 2009-2010 Ministry of Agriculture, Vietnam presented Gold Cup Award – to Bioseed Vietnam for Corn hybrid Bio 9698 & Rice hybrid Bio 404
  • 2009-2010 5 Star Rating Award from British Safety Council for Health & Safety Management system presented to SFC, Kota
  • 2009-2010 FAI Award for Excellence in Safety Award-2010, presented to fertilizer plant, SFC, Kota
  • 2010 Best managed plant award by Alkali Manufacturers' Association of India presented to Shriram Alkali & Chemicals, Bharuch
  • 2011 Best Employer Award, presented by Employer Association of Rajasthan to DCM Shriram Ltd., Kota
  • 2011-2012 DCM Shriram Ltd., Kota Manufacturing facility conferred with the highly prestigious and eminent ‘AIOE Outstanding Industrial Relations Award
  • 2012 Bioseed Research India (BRI) and International Center of Genetic Engineering and Biotechnology (ICGEB) won the prestigious ‘Best Innovation in Biotechnology’ award from the Department of Biotechnology, Government of India
  • 2012 Fenesta Windows awarded the most preferred window solution provider by India Home Awards in 2012.
  • 2013 BRI (Bioseed Research International) awarded the ISBA 2013 Performance Award. The award is in recognition of BRI's successful partnership with ICRISAT’s business incubator.
  • 2013-2014 FAI-Award for Excellence in Safety-2014 awarded to Shriram Fertilizers & Chemicals, Kota
  • 2013-2014 FAI (Fertiliser Association of India) Best Production Performance Award-2014, awarded to Shriram Fertilizer & Chemicals, Kota for Nitrogenous Fertilizer Plant
  • 2015 DCM Shriram Ltd National Energy Conservation Award for its Caustic Soda plant at Bharuch, Gujarat (Second Prize)
  • 2015 DCM Shriram Ltd wins National Energy Conservation Award for its Caustic Soda plant at Kota, Rajasthan (First Prize)
  • 2015 DSCL Sugar (Hariawan Unit) wins Annual Greentech CSR Award (Gold )
  • 2015 2015 DSCL Sugar (Loni Unit) wins Annual Greentech Sustainability (Silver) )award
  • 2016 Best Video Film Award to Shriram Farm Solutions, DCM Shriram Ltd presented by Minister of Chemicals & Fertilizers, Mr. Anant Kumar at the Fertilizer Association of India Annual Seminar
  • 2016 Certificate of Honour” was presented to DCM Shriram Ltd for their contribution in the Mukhyamantri Jal Swavalamban Scheme (MJSS), Rajasthan on 15th August 2016
  • 2016 Best Employer- 2015” Award for outstanding performance for labour welfare activities. The award was presented by Mr. Narendra Kumar Jain (President), The Employer’s Association of Rajasthan on 10th November 2016 to to DCM Shriram Ltd, Kota
  • 2016 FAI Award for “Excellence in Safety Performance” for the year 2015-16 to DCM Shriram Ltd, Kota
  • 2016 IFA’s Product Stewardship Certificate under Protect & Sustain initiative on 22nd September 2016 to DCM Shriram Ltd, Kota
  • 2016 Certificate of Excellence” from Employers Association of Rajasthan to DCM Shriram Ltd, Kota
  • 2016 The 'GOLD AWARD' in Sugar Sector for Safety Management presented by Greentech Foundation to DSCL Sugar-Ajbapur.
  • 2017 DSCL Sugar Hariawan won the Golden Peacock Award on Occupational Health & Safety at the 19th World Conference on Environment Management in Hyderabad dated 7th July, 2017.
  • 2017 Shriram Alkali & Chemicals, Bharuch was awarded the Greentech Environment Award (Silver category) in Chemical Sector on 1st February 2017.
  • 2017 DCM Shriram Ltd's Fertiliser Unit wins the 'Green Leaf' from IFA in March 2017.
  • 2017 CII Good to Great Task Force recognized Shriram Axiall Pvt Ltd for successfully implementing a Manufacturing Excellence Project. Accelerated Growth in PVC Compounding Business in April 2017
  • 2017 DCM Shriram Ltd, Kota was awarded as a “ Noteworthy Water Efficient Unit” and presented a Certificate for Excellence in Water Management in 3rd Water Innovation Summit 2017 at New Delhi on 5th September 2017.
  • 2017 DCM Shriram Ltd. was awarded at the 10th Global Agriculture Leadership Awards with the CSR Leadership Award for 2017 for its pioneering work towards empowering sugarcane farmers at a ceremony held at New Delhi on 5th Seotember , 2017
  • 2017 DSCL Sugar Loni won the ‘Gold award’ in Sugar sector for outstanding achievement in Safety management presented by Greentech Safety Award 2017 on 15th December 2017.
  • 2017 DCM Shriram Ltd. won the ‘Gold award’ in Chemical sector for outstanding achievement in Safety management by Greentech Foundation on 15th December 2017.
  • 2017 DCM Shriram Ltd won the ‘Best Performer’ in terms of energy saving under Perform, Achieve and Trade scheme cycle-1 in chlor alkali sector by Bureau of Energy Efficiency Ministry of Power, Govt of India on 14th December 2017.
  • 2018 DCM Shriram Ltd's Fertiliser Plant, Kota awarded for 'Improvement in Overall Performance of the Company” by Fertiliser Association of India (FAI).
  • 2018 Fenesta wins 'The Expert Choice Award 2018'
  • 2018 Fenesta wins The Extraordinaire Brand 2018 given by Brand Vision
  • 2018 Fenesta wins INEX Brand of the Year 2018 by Realty Plus
  • 2018 Fenesta wins ET Now Brand of the year 2018 (uPVC Windows)
  • 2019 DCM Shriram Foundation's CSR Program at Kota has won the Swachh School Award.
  • 2019 DCM Shriram Ltd wins 'The Economic Times Best Brands 2019' award by The Economic Times
  • 2019 'Shriram Swachhagrah'- the flagship CSR program of DCM Shriram Foundation was selected for the 25th Bhamashah State Level Award by the Department of Education, Govt. of Rajasthan.

Milestones

  • 1992: Expansion of Power from 40MW to 70MW
  • 1994: Textile Rationalization
  • 1996: Commissioned Shriram Alkali & Chemicals, Bharuch
  • 1997: Started Sugar Business at Ajbapur Plant
  • 1998: Started Energy service business
  • 2002: Acquired majority control of Bioseed Global
  • 2002: Started Hariyali Kisaan Bazaar
  • 2002: Acquired Rupapur sugar plant
  • 2003: Launched Finvesta UPVC Windows
  • 2005: Capacity expansion of PVC, Carbide, Chlor-Alkali, Cement & Power
  • 2006: Established new sugar plants at Loni and Hariawan
  • 2007: 100% takeover of Bioseed
  • 2007: Divested Swatantra Bharta Mills
  • 2009: Double the capacity of Chlor Alkali Plant
  • 2011: Setup Bioseed Indonesia
  • 2014: Started JV with Axiall, launched Shriram Axiall Pvt Ltd
  • 2016: Introduction of S/4HANA
  • 2017: Doubled capacity at Bharuch Facility
  • 2018: Setup Distillery at DSCL Sugar
  • 2019: DCM Shriram Ltd, Sugar organized Krishi Yantra Mela 2019
  • 2020: Fenesta launches Aluminum windows and doors; expands its portfolio
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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