Dc Infotech And Communication Ltd (DCI) AI Stock Analysis

• Market Cap: ₹3.88B
• Dividend Yield: N/A
• Average Volume (3M): 11.56K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 1.25
• Revenue Growth: 20.39%
• EPS Growth: 11.63%
• Country: IN
• Employees: 94
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 4.06
• Shares Outstanding: 16,000,000
• 10 Day Avg. Volume: 2,926
• 30 Day Avg. Volume: 11,557
• PEG Ratio: 1.91
• Price to Book (P/B): 4.89
• Price to Sales (P/S): 0.63
• P/FCF Ratio: -68.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ₹268.00 ▲(6.86% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is primarily supported by strong financial performance (rapid revenue growth and improving profitability), with technicals also favorable due to a clear uptrend. The main offsets are weak cash conversion (negative free cash flow), remaining leverage risk, and a valuation that is not especially cheap with no dividend support.

Positive Factors

Sustained Revenue Growth

A multi-year revenue CAGR above 33% signals durable demand expansion and successful market penetration. A rapidly growing top line provides scale, supports margin leverage and reinvestment capacity, and underpins long-term strategic options even if cash conversion lags.

Improving Profitability Margins

Consistent improvement in gross and net margins reflects better cost control and operational efficiency. Rising margins increase earnings resiliency and free up resources for reinvestment or deleveraging, reinforcing sustainable profitability over the medium term.

Stronger Equity Base

A materially larger equity base and higher equity ratio provide a lasting capital cushion, reduce insolvency risk and improve borrowing capacity. This structural strengthening supports growth funding and cushions shocks, improving long-term financial stability.

Negative Factors

Persistent Negative Free Cash Flow

Continued negative free cash flow despite improvement indicates profits are not translating into cash. Over months to years this constrains self-funded growth, increases reliance on external financing, and raises execution risk if capital access tightens.

Elevated Leverage

Sustained reliance on debt financing leaves the company exposed to interest burden and refinancing cycles. Even with improvement, elevated leverage reduces financial flexibility and increases downside risk if revenue or cash conversion weakens.

Modest Absolute Profit Margins

While margins are improving, absolute levels remain thin. Low margins limit the firm's ability to absorb cost shocks, fund investment internally or build significant cash buffers, making long-term resilience dependent on continued margin expansion or external funding.

Dc Infotech And Communication Ltd Business Overview & Revenue Model

Company Description

DC Infotech and Communication Limited engages in the wholesale of computers and computer peripheral equipment and its parts in India and internationally. It provides cables, energy intelligence, KVM, and professional audio and video products under Aten brand; network infrastructure and security, routers, structured cabling, switches, and wireless products under Dlink brand; switches, ready NAS, wireless access point under Netgear brand; arbor DDos protection, cyber threat protection, enterprise application and network performance management, and smart visibility through ISNG, PFS and TAPS under Netscout brand; smart LED signage and signage under Samsung brand; advanced threat protection, email security, end point security, firewalls, remote access, and secure wireless products under Sonicwall; and internet access, platform, and private access under Zscaler brand. It also offers network, data security, fiber cabling, copper cabling, SMB and enterprise wifi, surveillance analog and digital, video, and VoIP solutions. The company was incorporated in 1998 and is based in Mumbai, India.

How the Company Makes Money

DCI generates revenue through multiple streams, primarily by offering IT services and solutions to clients across different industries. Key revenue streams include project-based contracts for software development and system integration, recurring income from managed IT services and cloud solutions, and consulting fees for IT strategy and digital transformation services. Additionally, DCI may benefit from strategic partnerships with technology providers and telecommunications companies, allowing them to enhance their service offerings and tap into new markets, thereby diversifying their income sources.

Dc Infotech And Communication Ltd Financial Statement Overview

Summary

Strong top-line growth and improving margins support a high score, but it is held back by persistent negative free cash flow and still-elevated leverage despite balance sheet improvement.

Income Statement

Dc Infotech And Communication Ltd has demonstrated strong revenue growth, increasing from approximately 1.68 billion in 2021 to 5.56 billion in 2025, representing a compound annual growth rate of over 33%. The gross profit margin has improved to 8.3% in 2025 from 6.2% in 2021, showcasing enhanced cost efficiency. Net profit margin increased from 1.3% in 2021 to 2.6% in 2025, indicating better profitability control. The EBIT margin also saw improvement from 3.6% to 4.6%, reflecting operational efficiency. These factors contribute to a strong income statement performance.

Balance Sheet

The company's balance sheet shows a substantial increase in stockholders' equity from 184 million in 2021 to 722 million in 2025, indicating a solid equity base. However, the debt-to-equity ratio has remained relatively high, decreasing from 0.93 in 2021 to 0.7 in 2025, suggesting a reliance on debt financing. The equity ratio improved from 25.3% in 2021 to 29.3% in 2025, indicating a healthier financial structure. Despite improvements, the company's leverage poses potential risks.

Cash Flow

The company has struggled with negative free cash flow in recent years, with free cash flow at -51 million in 2025. However, there is a notable improvement in free cash flow compared to -117 million in 2023. The operating cash flow to net income ratio remains negative, indicating challenges in converting profits to cash. Despite these challenges, the company has maintained positive financing cash flows, suggesting an ability to raise funds as needed.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.85B	5.56B	4.60B	3.60B	2.33B	1.69B
Gross Profit	480.13M	460.96M	363.30M	272.99M	175.39M	79.99M
EBITDA	287.67M	275.15M	202.31M	129.90M	77.88M	48.94M
Net Income	154.91M	145.00M	116.10M	70.75M	40.04M	21.94M
Balance Sheet
Total Assets	0.00	2.46B	2.08B	1.40B	1.02B	727.77M
Cash, Cash Equivalents and Short-Term Investments	233.61M	247.06M	124.42M	36.16M	90.89M	12.71M
Total Debt	0.00	508.83M	376.11M	260.07M	177.99M	171.90M
Total Liabilities	-722.16M	1.74B	1.57B	1.10B	792.54M	543.28M
Stockholders Equity	722.16M	722.16M	505.88M	295.29M	224.53M	184.49M
Cash Flow
Free Cash Flow	0.00	-51.32M	-120.75M	-117.53M	80.83M	10.71M
Operating Cash Flow	0.00	-38.04M	-96.52M	-114.48M	95.68M	-1.33M
Investing Cash Flow	0.00	-249.00K	16.26M	-343.00K	-13.93M	-1.40M
Financing Cash Flow	0.00	147.48M	170.04M	60.23M	-5.23M	-33.83M

Dc Infotech And Communication Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 250.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DCI, the sentiment is Negative. The current price of 250.8 is below the 20-day moving average (MA) of 253.24, above the 50-day MA of 243.47, and below the 200-day MA of 257.63, indicating a bearish trend. The MACD of 4.75 indicates Positive momentum. The RSI at 44.27 is Neutral, neither overbought nor oversold. The STOCH value of 12.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DCI.

Dc Infotech And Communication Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCI	71 Outperform	₹3.88B	19.26	―	―	20.39%	11.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.52B	7.92	―	―	-1.07%	187.83%
TERASOFT	60 Neutral	₹4.27B	20.78	―	0.23%	71.84%	138.63%
GOLDTECH	55 Neutral	₹2.04B	23.16	―	―	18.44%	-32.39%
COMPINFO	46 Neutral	₹120.93M	―	―	―	―	―
HCL.INSYS	40 Underperform	₹4.12B	-17.40	―	―	-22.96%	28.55%

Dc Infotech And Communication Ltd Corporate Events

DC Infotech Schedules Virtual Investor and Analyst Meeting for March 6

DC Infotech & Communication Limited has announced that its management will hold a virtual meeting with investors and analysts on 6 March 2026 at 4:00 p.m., with Lakshya Capital Management LLP scheduled to participate. The company emphasized that discussions in this meeting will be confined to publicly available information and will not involve any unpublished price-sensitive information, underscoring its adherence to fair disclosure and regulatory requirements.

The meeting schedule remains subject to change due to potential exigencies on the part of the fund, broking house, or the company, indicating a flexible approach to investor engagement logistics. This planned interaction reflects DC Infotech’s ongoing efforts to maintain transparent communication with capital market participants while complying with SEBI’s listing obligations and disclosure norms.

DC Infotech to Engage Investors at Bharat Connect Rising Stars 2026 Conference

DC Infotech & Communication Limited has announced that its management will participate in the Bharat Connect Conference: Rising Stars 2026, an online investor and analyst conference organized by Arihant Capital and scheduled for 11 March 2026. The company emphasized that any discussions during the event will be based solely on publicly available information and will not involve unpublished price-sensitive information, underscoring its adherence to fair disclosure norms and SEBI listing regulations.

The participation signals an effort by DC Infotech to increase engagement with the investor community and enhance its visibility among market participants through a curated capital-markets platform. For stakeholders, this outreach may provide additional insight into the company’s strategy and operations within the broader Indian technology and communications landscape, while reaffirming its commitment to regulatory compliance and transparent communication.