DCW Ltd - Stock Valuation and Financial Performance

BSE: 500117 | NSE: DCW | Chemicals | Small Cap

DCW Share Price

50.07 -0.16 -0.32%
as on 19-Mar'24 11:28

DeciZen - make an informed investing decision on DCW

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

DCW stock performance -

mw4me loader
P/E Ratio (SA):
41.55
Market Cap:
1,482.6 Cr.
52-wk low:
40
52-wk high:
72.4

Is DCW Ltd an attractive stock to invest in?

1. Is DCW Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that DCW Ltd is a average quality company.

2. Is DCW Ltd undervalued or overvalued?

The key valuation ratios of DCW Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is DCW Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of DCW Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of DCW:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
DCW Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 6.9%1.2%4.9%4%3.1%5.8%4.7%6.5%13.9%17.8%-
Value Creation
Index
-0.5-0.9-0.7-0.7-0.8-0.6-0.7-0.50.00.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,3261,2541,2631,1761,1871,3531,2771,4642,4552,6341,838
Sales YoY Gr.--5.4%0.7%-6.9%1%13.9%-5.6%14.6%67.6%7.3%-
Adj EPS 2.90.11.30.9-0.90.4-0.504.15.71.2
YoY Gr.--95.8%983.3%-33.1%-204.6%NA-251.4%NANA39.9%-
BVPS (₹) 26.225.928.929.828.728.62626.330.434.734.7
Adj Net
Profit
60.32.728.619.1-20.27.8-13.90.110616836
Cash Flow from Ops. 23268.612322357.3285170218178226-
Debt/CF from Ops. 2.911.46.93.514.22.43.62.93.12.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.9%17.3%27.3%7.3%
Adj EPS 7.9%NANA39.9%
BVPS3.2%3.9%10.2%14.1%
Share Price 16.2% 18.1% 23.5% 6.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
11.10.54.83-3.11.2-2.1014.218.43.5
Op. Profit
Mgn %
12.26.313.312.210.613.313.114.313.716.811.5
Net Profit
Mgn %
4.60.22.31.6-1.70.6-1.104.36.41.9
Debt to
Equity
1.21.41.31.21.31.10.90.90.70.5-
Working Cap
Days
106101908891768181576766
Cash Conv.
Cycle
5646474539313133304214

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 27.28%

Debt to equity has declined versus last 3 years average to 0.49

Return on Equity has declined versus last 3 years average to 3.50%

Sales growth is not so good in last 4 quarters at -32.96%

Latest Financials - DCW Ltd.

Standalone Consolidated
TTM EPS (₹) 1.2 -0.2
TTM Sales (₹ Cr.) 1,838 1,254
BVPS (₹.) 34.7 0
Reserves (₹ Cr.) 966 510
P/BV 1.45 0.00
PE 41.55 0.00
From the Market
52 Week Low / High (₹) 40.00 / 72.40
All Time Low / High (₹) 0.65 / 72.40
Market Cap (₹ Cr.) 1,483
Equity (₹ Cr.) 59
Face Value (₹) 2
Industry PE 46.7

Management X-Ray of DCW:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.0064.4064.4059.370.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,3261,2541,2631,1761,1871,3531,2771,4642,4552,634
Operating Expenses 1,1971,1921,1131,0351,0621,1911,1311,2552,1302,205
Manufacturing Costs336321319283300324310307468626
Material Costs6786916145925976816367561,4211,294
Employee Cost 78879297114114123133156182
Other Costs 1049388635171625984103
Operating Profit 12962150141126162146209325428
Operating Profit Margin (%) 9.7%5.0%11.9%12.0%10.6%12.0%11.5%14.3%13.2%16.3%
Other Income 143964911615
Interest 2719585793104107120113126
Depreciation 51526968888387878990
Exceptional Items 0-10000001447
Profit Before Tax 52-52725-49-22-4014143274
Tax 141105-29-18-13103682
Profit After Tax 38-61720-20-4-274108192
PAT Margin (%) 2.9%-0.5%1.4%1.7%-1.7%-0.3%-2.1%0.3%4.4%7.3%
Adjusted EPS (₹)1.8-0.30.80.9-0.9-0.2-1.00.24.16.5
Dividend Payout Ratio (%)20%0%0%0%0%0%0%0%10%8%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 5565606346546356326786877941,025
Share Capital 42434444444452525259
Reserves 515517590610591587626635742966
Minority Interest0000000000
Debt602681736661690538531588452381
Long Term Debt588567555480479384467523441381
Short Term Debt141141811812121546465110
Trade Payables379294230271174278323298296275
Others Liabilities 253312363366404372302302361383
Total Liabilities 1,7901,8471,9631,9521,9041,8191,8341,8751,9032,063

Fixed Assets

Gross Block1,1611,1851,3271,6531,6791,8401,8601,8861,9131,945
Accumulated Depreciation50055067122208306393479561649
Net Fixed Assets6616351,2601,5311,4711,5341,4671,4071,3521,296
CWIP 7188493671221247124860
Investments 0000000000
Inventories204166168135157122177169247345
Trade Receivables94951178086747395116133
Cash Equivalents 372241750122112168
Others Assets109964982626554786762
Total Assets 1,7901,8471,9631,9521,9041,8191,8341,8751,9032,063

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 2326912322357285170218178226
PBT 52-52725-49-22-4014143274
Adjustment 7869122120187182203205206159
Changes in Working Capital 12010-2582-7112019-1-149-158
Tax Paid -19-6-1-810-20-23-50
Cash Flow From Investing Activity -325-87-100-95-13-45-43-7852-165
Capex -326-89-104-97-20-30-16-18-37-39
Net Investments 02300-15-30-6485-134
Others 1002712448
Cash Flow From Financing Activity 9219-23-128-44-241-119-99-192-139
Net Proceeds from Shares 0101502072000
Net Proceeds from Borrowing 186101-7814-73632-455
Interest Paid -27-90-108-50-88-113-106-132-99-136
Dividend Paid -8-80000000-18
Others -609768129-54-911-489
Net Cash Flow -11-100084138-78
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)7.09-1.082.893.13-3.13-0.67-4.090.5614.5121.1
ROCE (%)6.941.096.025.613.075.955.2210.2819.2527.78
Asset Turnover Ratio0.870.760.730.670.630.730.70.791.31.33
PAT to CFO Conversion(x)6.11N/A7.2411.15N/AN/AN/A54.51.651.18
Working Capital Days
Receivable Days23252828252221211617
Inventory Days54494442443843433141
Payable Days40474446565161562530

DCW Ltd Stock News

DCW Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of DCW on 19-Mar-2024 11:28 is ₹50.07.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 19-Mar-2024 11:28 the market cap of DCW stood at ₹1,482.6.
The latest P/E ratio of DCW as of 19-Mar-2024 11:28 is 41.55.
The latest P/B ratio of DCW as of 19-Mar-2024 11:28 is 1.45.
The 52-week high of DCW is ₹72.40 and the 52-week low is ₹40.00.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of DCW is ₹1,838 ( Cr.) .

About DCW Ltd

DCW was started way back in 1925 with the foundation of India’s first Soda Ash factory at Dhrangadhra. The plant was taken over in 1939 and run under the name Dhrangadhra Chemical Works, from there the growth of company began.

DCW is a diversified manufacturer of basic chemicals, such as:  Caustic Soda,Liquid Chlorine and Chlorine based products such as Trichloroethylene and HCL, Upgraded Ilmenite or Synthetic Rutile ,Yellow Iron Oxide, PVC Resin, Soda Ash,  Ammonium bi-carbonate and Liquid Bromine and Bromide. 

It received a major impetus in 1959 with the commissioning of the chlor-alkali plant at Sahupuram in the southern state of Tamilnadu. Growth at the chlor-alkali complex was rapid as between 1965 and 1970 three plants were erected that turned the co-product chlorine into a money spinner; a liquid chlorine plant in 1965, the country’s first tri-chloroethylene plant (left) in 1968 and an integrated PVC resin plant in 1970-making the company one of the first in the nascent petrochemicals field. In the same year, 1970, the company set up a plant to manufacture upgraded ilmenite, the first of its kind in Asia, and even today, one of the few of its kind in the world. In 1986, to reflect the expanded activity spectrum, and its emergence as a multi-product and multi-locational company, the corporate name was changed simply to DCW Ltd.

DCW pioneered the manufacture of Soda Ash in India. The original capacity of 60 tonnes per day has been increased in stages to the present day capacity of 300 TPD and new products have been added to bring diversity to the product portfolio.

The output of Caustic Soda has been increased in stages from 28,000 TPA to 80,000 TPA, making DCW one of the leading producers of this basic chemical in India.The product range of the Soda Ash division now reads an impressive 96,000 TPA of Soda Ash, Ammonium Bicarbonate 5000 TPA, Soda Bicarbonate 12,000 TPA, Liquid Bromine 300 TPA; Isopropyl Bromide 120 TPA; Ethyl Bromide 40 TPA; Butyl Bromide 8 TPA. Calcium Chloride is also produced but its production is seasonal.

In petrochemicals it successfully erected a total storage capacity of 5,600 MT of PVC at Tuticorin port (a distance of 30 km from the plant) - including a huge 5000 M3 sphere.

At Dhrangadhra, DCW contributes substantially to the S.P. Jain Arts and Commerce College, and the Panjarapole Trust which maintains old cattle. In addition, DCW maintains a club for the welfare of its employees and runs a primary school at the labour colony. The company also makes contributions to the Kidney Disease Research Centre for hospital patients and to the Tiffin Seva Mandal for feeding the poor.

DCW was the first, and is currently the only Indian producer to handle and store imported VCM, a volatile gas.

Milestones achieved

  • 2013
    - 'National Energy Management Award’ from CII to certify that DCW Ltd, Sahupuram is an Excellent Energy Efficient Unit’ for 2012
  • 2012
    - 'National Energy Management Award’ from CII to certify that DCW is an Excellent Energy Efficient Unit.
  • 2011
    - 'National Energy Management Award’ from CII to certify that DCW is an Excellent Energy Efficient Unit.
  • 2010
    - 'National Energy Management Award’ from CII to certify that DCW is an Excellent Energy Efficient Unit.
    - 'National Energy Management Award’ from CII to certify that the project implemented by DCW is an Innovation Project.
    - DCW Awarded Best Managed Chlor-Alkali Plant by Alkali Manufacturers' Association of India.
    -DCW Limited has entered into a Technical License and Support Agreement with Rockwood Italia (Italy), a leading producer of synthetic iron oxides
    - DCW Limited has entered into a Technical License Agreement with Arkema, France, Europe's leading producer of Vinyl Products.
  • DCW Company has commenced sale of it’s Surplus Power from the Company’s 2 x 25 MW Coal based Captive Co Generation Plant situated at Sahupuram in Tamilnadu to Tamil Nadu Electricity Board in April 2009.
  • 1986-In collaboration with CSIO, Chandigarh, a process for current monitoring based on microprocessors was developed in the Caustic Soda Cells to result in energy saving of 125 KWH per ton of Caustic Soda.
  • 1985-Development of a new product called 'Weldgrade beneficiated ilmenite' developed by DCW for the welding rods industry. (1985)
  • 1985-Process of de-mercurisation of mercury - bearing water effluent developed for the first time by DCW. (1985)
  • In 1992-93, DCW also perfected the production of high purity synthetic rutile wherein the purity of TiO2 is over 95%.

 

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