DCM Ltd. (DCM) AI Stock Analysis

• Market Cap: ₹1.47B
• Dividend Yield: N/A
• Average Volume (3M): 1.86K
• Price to Earnings (P/E): 27.6
• Beta (1Y): 1.15
• Revenue Growth: -1.45%
• EPS Growth: 278.46%
• Country: IN
• Employees: 343
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -0.16
• Shares Outstanding: 18,677,748
• 10 Day Avg. Volume: 4,081
• 30 Day Avg. Volume: 1,861
• PEG Ratio: 0.03
• Price to Book (P/B): 4.33
• Price to Sales (P/S): 2.69
• P/FCF Ratio: 19.04
• 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: 62 Neutral
• Price Target: ₹84.00 ▼(-7.91% Downside)
• Action: Reiterated Date: 11/15/25
• Date: Action: Reiterated 11/15/25

DCM Ltd.'s overall stock score is driven by its strong valuation, indicating potential undervaluation. However, mixed financial performance and technical indicators suggest caution. The company needs to address profitability and cost control challenges to improve its financial outlook.

Positive Factors

Cash flow generation

Sustained positive free cash flow and a high operating cash flow-to-net-income ratio indicate the business can internally fund operations, capital expenditures and debt service without relying on external financing. Over 2–6 months this supports liquidity, strategic flexibility and resilience to margin volatility.

Improving balance sheet stability

A stronger equity base and lower leverage improve solvency and reduce refinancing risk, enabling more durable capital allocation for investments or working capital. This structural improvement gives management more room to navigate cyclical demand and supports long-term operational planning.

Historic revenue expansion

Meaningful top-line expansion over multiple years shows product demand and market traction, providing a base to scale fixed-cost recovery and improve unit economics. If managed, this revenue foundation can enable sustainable growth and justify strategic investments over the medium term.

Negative Factors

Negative gross margins

A negative gross margin signals that direct costs exceed product pricing, which is a structural problem for profitability. Without durable remediation—cost reduction, pricing adjustments, or product mix change—this undermines long-term gross profitability and the ability to generate operating cash sustainably.

Declining operational profitability

A falling EBIT margin indicates operating efficiency deterioration or rising overhead relative to sales. Persisting margin compression weakens the firm's capacity to reinvest, pay down debt, or absorb shocks, and may reflect competitive or structural cost disadvantages needing strategic correction.

Sharp EPS contraction

An ~80% decline in EPS reflects volatile earnings and reduced retained earnings, limiting internal funding and investor confidence. Over months this can constrain strategic options, raise financing costs, and signal deeper operational or pricing issues that must be addressed to restore durable profitability.

DCM Ltd. Business Overview & Revenue Model

Company Description

DCM Limited, together with its subsidiaries, primarily engages in the grey iron casting and real estate businesses in India and internationally. The company manufactures and supplies grey iron castings for automotive market, such as cars, multi-utility vehicles, tractors, light commercial vehicles, heavy commercial vehicles, and earth moving equipment. It also develops a real estate site located at Bara Hindu Rao/Kishan Ganj, Delhi; and provides IT infrastructure services. The company was formerly known as Delhi Cloth & General Mills Co. Limited and changed its name to DCM Limited in October 1983. DCM Limited was incorporated in 1889 and is based in Delhi, India.

How the Company Makes Money

DCM generates revenue through multiple streams, primarily by selling its software and services to businesses looking to enhance their data management capabilities. Key revenue streams include subscription fees from cloud services, licensing fees for proprietary software, and consulting fees for tailored data solutions. Additionally, DCM has established significant partnerships with major tech firms, which not only enhance its product offerings but also provide additional channels for revenue through collaborative projects and joint marketing initiatives. The company also benefits from recurring revenue models, as many clients opt for ongoing support and maintenance services, creating a stable income base.

DCM Ltd. Financial Statement Overview

Summary

DCM Ltd. displays mixed financial performance with strong cash flow management and improving balance sheet stability. However, the income statement reveals challenges with profitability and cost control, necessitating strategic adjustments to enhance operational efficiency.

Income Statement

DCM Ltd. has experienced a volatile revenue trajectory, marked by significant revenue growth from 2021 to 2024, followed by a small increase in 2025. The gross profit margin has turned negative in 2025, indicating issues with cost management. While the net profit margin in 2025 is positive, the EBIT margin has declined, suggesting challenges in core operational profitability.

Balance Sheet

The company has improved its financial stability with a significant increase in stockholders' equity, reducing the debt-to-equity ratio over recent years. The equity ratio has strengthened, indicating better asset management relative to debt. However, past negative equity poses a risk if not carefully managed.

Cash Flow

DCM Ltd. shows strong cash flow management, with positive free cash flow growth and a high operating cash flow to net income ratio. This indicates efficient cash operations despite fluctuations in net income, which supports overall financial stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	682.10M	690.40M	672.68M	694.48M	697.73M	474.00M
Gross Profit	503.70M	-11.60M	656.58M	677.72M	11.47M	-56.60M
EBITDA	319.60M	105.50M	147.99M	129.01M	410.14M	14.71M
Net Income	254.50M	219.20M	52.05M	23.33M	301.65M	-178.41M
Balance Sheet
Total Assets	0.00	1.25B	1.13B	1.14B	1.17B	1.26B
Cash, Cash Equivalents and Short-Term Investments	289.50M	296.90M	221.90M	110.95M	132.98M	92.06M
Total Debt	0.00	12.40M	17.20M	5.96M	240.12M	322.56M
Total Liabilities	-429.20M	821.90M	925.44M	990.25M	1.05B	1.45B
Stockholders Equity	429.20M	429.20M	207.71M	149.55M	119.38M	-190.67M
Cash Flow
Free Cash Flow	0.00	97.50M	18.57M	173.43M	112.73M	27.50M
Operating Cash Flow	0.00	105.80M	25.80M	177.85M	116.19M	29.68M
Investing Cash Flow	0.00	-85.20M	-19.51M	-29.09M	7.46M	-25.28M
Financing Cash Flow	0.00	-5.70M	-5.70M	-151.39M	-83.53M	-10.32M

DCM Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 91.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DCM, the sentiment is Negative. The current price of 91.22 is above the 20-day moving average (MA) of 84.51, above the 50-day MA of 87.76, and below the 200-day MA of 97.62, indicating a bearish trend. The MACD of -2.47 indicates Positive momentum. The RSI at 28.97 is Positive, neither overbought nor oversold. The STOCH value of 4.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DCM.

DCM Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMFL	72 Outperform	₹22.15B	25.57	―	1.07%	-4.47%	-17.62%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DCM	62 Neutral	₹1.47B	27.65	―	―	-1.45%	278.46%
TIRUPATIFL	60 Neutral	₹4.38B	73.70	―	―	-0.94%	-48.46%
GANGAFORGE	57 Neutral	₹405.75M	-12.13	―	―	1.05%	-531.16%
HILTON	55 Neutral	₹925.37M	6.22	―	―	27.13%	63.22%
SMLT	50 Neutral	₹958.28M	25.30	―	0.58%	―	―