DCM Financial Services Limited (DCMFINSERV) AI Stock Analysis

• Market Cap: ₹86.95M
• Dividend Yield: N/A
• Average Volume (3M): 3.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -70.89%
• EPS Growth: -142.26%
• Country: IN
• Employees: 6
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -0.17
• Shares Outstanding: 22,125,053
• 10 Day Avg. Volume: 4,812
• 30 Day Avg. Volume: 3,861
• PEG Ratio: -0.32
• Price to Book (P/B): -0.23
• Price to Sales (P/S): 3635.49
• P/FCF Ratio: -40.21
• 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: 40 Underperform
• Price Target: ₹4.00 ▼(-20.00% Downside)

The score is primarily constrained by very weak financial performance (losses, negative equity/leverage risk, and negative operating/free cash flow). Technicals add pressure as the stock trades below key moving averages with weak momentum, while valuation offers limited support due to negative earnings and no dividend data.

Positive Factors

Recurring fee-based revenue

Recurring management and advisory fees tied to AUM create stable, predictable revenue streams across quarters. This fee-based model supports cash generation, reduces near-term revenue volatility versus transactional-only firms, and aids medium-term planning.

Diversified client base

Serving both individual and institutional clients diversifies revenue sources and lowers client concentration risk. That mix enables cross-selling of wealth and advisory products and supports more stable net inflows and retention across market cycles over months.

Strategic distribution partnerships

Partnerships with banks and financial institutions extend distribution, lower customer acquisition costs, and provide access to institutional mandates. These alliances are structural advantages that enable scalable growth and persistent reach in the medium term.

Negative Factors

Negative shareholders' equity and high leverage

Negative shareholders' equity and elevated leverage signal solvency pressure and constrain borrowing capacity. This structural balance-sheet weakness limits regulatory flexibility, restricts capital-raising options and impairs the firm's ability to fund growth or absorb shocks.

Negative operating and free cash flow

Persistent negative operating and free cash flows indicate weak internal cash generation and ongoing liquidity strain. Reliance on external funding increases refinancing risk and reduces strategic flexibility to invest in products or expand distribution over the medium term.

Ongoing unprofitability and weak margins

Consistent negative net profit, EBIT and EBITDA margins show the company is not covering operating costs from core activities. Persistent unprofitability erodes capital, limits reinvestment capacity and threatens long-term viability absent structural margin improvement.

DCM Financial Services Limited Business Overview & Revenue Model

Company Description

DCM Financial Services Limited does not have significant operations. Previously, it was involved in the auto finance business. The company was incorporated in 1991 and is based in New Delhi, India.

How the Company Makes Money

DCMFINSERV generates revenue through multiple streams including management fees from assets under management (AUM) in its investment funds, performance fees linked to the profitability of its investment strategies, and advisory fees from its financial consulting services. Additionally, the company may earn commissions from financial product sales and transaction fees for executing trades on behalf of clients. Strategic partnerships with banks and other financial institutions enhance their service offerings and customer reach, contributing to a steady flow of income. The company's diversified approach to revenue generation helps mitigate risks associated with market fluctuations, ensuring a stable financial foundation.

DCM Financial Services Limited Financial Statement Overview

Summary

Very weak fundamentals: losses reflected in negative net profit/EBIT/EBITDA margins, a stressed balance sheet with negative stockholders’ equity and high leverage concerns, and poor liquidity with negative operating and free cash flow.

Income Statement

The income statement reveals significant challenges, with negative net profit margins and EBIT margins indicating ongoing losses. Despite a slight revenue growth, the company has struggled to maintain profitability, as evidenced by negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet shows a concerning financial position with negative stockholders' equity and a high debt-to-equity ratio, indicating potential solvency issues. The return on equity is minimal, reflecting poor returns on shareholders' investments.

Cash Flow

Cash flow analysis highlights severe issues, with negative operating and free cash flows. The free cash flow to net income ratio is positive, but overall cash flow performance is weak, indicating liquidity challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.00K	32.00K	45.00K	-1.84M	32.00K	1.84M
Gross Profit	-6.28M	-5.43M	-5.13M	-6.82M	-4.86M	-2.31M
EBITDA	-20.00K	-3.69M	-6.57M	-5.72M	12.05M	6.45M
Net Income	-13.78M	-11.85M	-9.38M	-48.49M	4.76M	-1.29M
Balance Sheet
Total Assets	0.00	214.71M	236.49M	287.83M	375.20M	391.65M
Cash, Cash Equivalents and Short-Term Investments	0.00	54.67M	11.53M	124.73M	14.36M	8.32M
Total Debt	0.00	693.96M	695.74M	736.95M	781.92M	798.70M
Total Liabilities	499.25M	713.96M	723.65M	765.86M	806.54M	825.83M
Stockholders Equity	-499.25M	-499.53M	-487.45M	-478.04M	-431.65M	-434.48M
Cash Flow
Free Cash Flow	0.00	-2.89M	-14.36M	-14.81M	-10.77M	-4.97M
Operating Cash Flow	0.00	-2.89M	-14.34M	-14.78M	-10.04M	-4.97M
Investing Cash Flow	0.00	6.10M	55.38M	59.80M	25.27M	10.95M
Financing Cash Flow	0.00	-3.68M	-41.25M	-44.53M	-16.38M	-6.53M

DCM Financial Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DCMFINSERV, the sentiment is Negative. The current price of 5 is above the 20-day moving average (MA) of 4.71, below the 50-day MA of 5.09, and below the 200-day MA of 5.89, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 37.50 is Neutral, neither overbought nor oversold. The STOCH value of 35.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DCMFINSERV.

DCM Financial Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BAIDFIN	64 Neutral	₹1.69B	8.11	―	0.85%	27.19%	73.43%
MAHAPEXLTD	54 Neutral	₹1.31B	14.67	―	―	-6.94%	-97.47%
TCIFINANCE	50 Neutral	₹252.43M	6.50	―	―	797.65%	―
WILLAMAGOR	49 Neutral	₹317.73M	-103.51	―	―	3048.97%	99.88%
VIJIFIN	44 Neutral	₹344.85M	29.32	―	―	39.46%	―
DCMFINSERV	40 Underperform	₹86.95M	-5.44	―	―	-70.89%	-142.26%

DCM Financial Services Limited Corporate Events

DCM Financial Services Files SEBI Dematerialisation Compliance Certificate for December Quarter

DCM Financial Services Limited has disclosed that it received a compliance certificate from its registrar and share transfer agent, MCS Share Transfer Agent Limited, under Regulation 74(5) of the SEBI (Depositories & Participants) Regulations, 2018, for the quarter ended 31 December 2025. The certificate confirms that securities submitted for dematerialisation during the period were listed on the relevant stock exchanges, and after verification the physical certificates were mutilated and cancelled with the depository recorded as the registered owner, underscoring the company’s adherence to regulatory norms in handling its share capital and providing assurance to investors and market participants about the integrity of its dematerialisation process.