DCM Ltd. (DCM) AI Stock Analysis

• Market Cap: ₹1.14B
• Dividend Yield: N/A
• Average Volume (3M): 1.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• 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: 50 Neutral
• Price Target: ₹65.00 ▼(-28.74% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

Overall score reflects mixed financial performance led by strong cash flow and improving balance-sheet stability, but weighed down by weak profitability (negative gross margin) and a clearly bearish technical trend (price below key moving averages with negative MACD and very low RSI/Stochastic). Valuation signals are also unfavorable/less reliable due to a negative P/E and no dividend yield data.

Positive Factors

Cash flow strength

DCM demonstrates durable cash generation: positive free cash flow growth and a high operating-cash-to-net-income ratio indicate the business converts earnings into cash efficiently. That supports capital spending, debt service and resilience through cyclical downturns without relying on external financing.

Improving balance-sheet stability

The company has materially strengthened its equity base and reduced leverage, improving financial flexibility. A healthier equity ratio lowers solvency risk, enables more sustainable capex or working-capital funding from internal resources, and reduces refinancing vulnerability over the medium term.

Sustained revenue expansion

DCM’s multi-year top-line expansion shows underlying demand or market share gains in its metal fabrication business. Even with uneven year-to-year changes, sustained revenue growth provides a foundation for scaling operations, improving unit economics, and absorbing fixed costs over the next several quarters.

Negative Factors

Negative gross margin

A negative gross margin signals that direct production or input costs exceed sales revenue, eroding the core profitability of the manufacturing model. Unless cost structure or pricing is corrected, this undermines sustainable profitability and limits free cash flow conversion over the medium term.

Declining EBIT margin

A falling EBIT margin indicates weakening operating efficiency or rising overhead relative to sales. Declining operating profit reduces reinvestment capacity, weakens the buffer for cyclical stress, and complicates long-term efforts to restore consistent net profitability and return on invested capital.

Earnings volatility / EPS collapse

A steep EPS contraction highlights earnings instability and higher execution risk. Large swings in underlying profitability make forecasting cash available for debt servicing, capex and dividends harder, raising the chance of future funding strain or downgraded investment plans if adverse trends persist.

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

null

DCM Ltd. Financial Statement Overview

Summary

Mixed fundamentals: cash flow strength (positive free cash flow growth and strong operating cash flow vs. net income) and improving balance-sheet stability (higher equity, lower debt-to-equity) are partly offset by weak profitability signals, including a negative gross margin in 2025 and declining EBIT margin.

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	692.00M	690.40M	672.68M	694.48M	697.73M	474.00M
Gross Profit	513.60M	-11.60M	656.58M	677.72M	11.47M	-56.60M
EBITDA	322.30M	105.50M	147.99M	129.01M	410.14M	14.71M
Net Income	261.90M	219.20M	52.05M	23.33M	301.65M	-178.41M
Balance Sheet
Total Assets	1.31B	1.25B	1.13B	1.14B	1.17B	1.26B
Cash, Cash Equivalents and Short-Term Investments	264.10M	296.90M	221.90M	110.95M	132.98M	92.06M
Total Debt	13.00M	12.40M	17.20M	5.96M	240.12M	322.56M
Total Liabilities	829.90M	821.90M	925.44M	990.25M	1.05B	1.45B
Stockholders Equity	476.20M	429.20M	207.71M	149.55M	119.38M	-190.67M
Cash Flow
Free Cash Flow	-24.60M	97.50M	18.57M	173.43M	112.73M	27.50M
Operating Cash Flow	-17.50M	105.80M	25.80M	177.85M	116.19M	29.68M
Investing Cash Flow	23.20M	-85.20M	-19.51M	-29.09M	7.46M	-25.28M
Financing Cash Flow	-7.00M	-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: Neutral

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 68.81, above the 50-day MA of 79.90, and below the 200-day MA of 94.67, indicating a bearish trend. The MACD of -6.33 indicates Positive momentum. The RSI at 28.57 is Positive, neither overbought nor oversold. The STOCH value of 21.43 is Neutral, 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	₹20.65B	24.91	―	1.07%	-4.47%	-17.62%
TIRUPATIFL	63 Neutral	₹5.83B	52.14	―	―	-0.94%	-48.46%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GANGAFORGE	57 Neutral	₹376.10M	307.92	―	―	1.05%	-531.16%
HILTON	55 Neutral	₹804.42M	13.74	―	―	27.13%	63.22%
SMLT	51 Neutral	₹896.68M	22.71	―	0.58%	―	―
DCM	50 Neutral	₹1.14B	-145.47	―	―	-1.45%	278.46%