Dc Infotech And Communication Ltd (DCI) AI Stock Analysis

• Market Cap: ₹3.78B
• Dividend Yield: N/A
• Average Volume (3M): 11.56K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 1.26
• Revenue Growth: 20.39%
• EPS Growth: 11.63%
• Country: IN
• Employees: 94
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 3.13
• 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: 68 Neutral
• Price Target: ₹249.00 ▼(-0.72% Downside)

The score is driven primarily by strong multi-year growth and improving profitability, partially offset by persistent negative free cash flow and ongoing leverage risk. Technicals are a secondary drag with the stock trading below key moving averages and negative MACD, while valuation is middling with a ~19.9 P/E and no dividend data.

Positive Factors

Revenue Growth

Sustained multi-year revenue growth at a >33% CAGR indicates strong product-market fit and scalable delivery capabilities. Over 2-6 months this supports deeper client relationships, increases recurring managed services potential, and funds strategic investments to reinforce market position.

Margin Improvement

Progressive expansion of gross, EBIT and net margins reflects better cost control and a healthier service mix. If sustained, these structural margin gains improve cash generation potential, bolster reinvestment capacity, and increase resilience against pricing pressure in the technology services market.

Strengthened Equity Base

A materially larger equity base and improved equity ratio provide a stronger capital cushion for expansion or downturns. This durable balance sheet improvement supports strategic initiatives, potential M&A, and reduces bankruptcy risk, enabling longer-term planning and investment flexibility.

Negative Factors

Elevated Leverage

Persistent reliance on debt financing leaves the company exposed to interest cost increases and refinancing risk. Elevated leverage can constrain strategic flexibility, limit ability to absorb demand shocks, and pressure margins if macro conditions tighten over the medium term.

Negative Free Cash Flow

Ongoing negative free cash flow, despite improvement, forces dependence on external financing to fund operations and growth. Over months this raises refinancing and interest-rate exposure and limits the firm's ability to self-fund capex, deleverage, or pursue opportunistic investments.

Weak Cash Conversion

A negative operating-cash-to-net-income ratio signals weak earnings quality and working-capital drag. Without better cash conversion, reported profits may not translate into durable cash flow, undermining long-term sustainability and making debt reduction or shareholder returns harder to achieve.

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 revenue growth (2021–2025 CAGR >33%) with improving gross/EBIT and net margins supports a solid operating profile. Balance sheet equity has expanded materially, but leverage remains relatively high. The main constraint is cash generation: free cash flow is still negative and cash conversion remains weak despite 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Neutral
• Last Price: 250.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DCI, the sentiment is Neutral. The current price of 250.8 is above the 20-day moving average (MA) of 230.22, above the 50-day MA of 239.54, and below the 200-day MA of 258.38, indicating a neutral trend. The MACD of -2.50 indicates Negative momentum. The RSI at 53.58 is Neutral, neither overbought nor oversold. The STOCH value of 86.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	68 Neutral	₹3.78B	20.66	―	―	20.39%	11.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.38B	9.41	―	―	-1.07%	187.83%
TERASOFT	60 Neutral	₹5.28B	32.37	―	0.23%	71.84%	138.63%
GOLDTECH	55 Neutral	₹2.39B	28.80	―	―	18.44%	-32.39%
HCL.INSYS	40 Underperform	₹4.26B	-21.97	―	―	-22.96%	28.55%

Dc Infotech And Communication Ltd Corporate Events

DC Infotech Partners with Sangfor Technologies to Boost MEA Digital Transformation

DC Infotech & Communication Limited has announced a strategic partnership with Sangfor Technologies to enhance its offerings in the MEA region. This collaboration will allow DC Infotech to provide advanced cybersecurity and cloud solutions, leveraging Sangfor’s innovations to support digital transformation for enterprises. The partnership is expected to strengthen DC Infotech’s regional presence and technical capabilities, offering secure and scalable solutions that address evolving threats and improve operational efficiency.