DCM Financial Services Limited (DCMFINSERV) AI Stock Analysis

• Market Cap: ₹110.63M
• Dividend Yield: N/A
• Average Volume (3M): 3.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• 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): 6.96
• 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: ₹5.00 ▲(0.00% Upside)

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

Revenue Diversification

Multiple fee streams (management, performance, advisory, commissions) create durable revenue diversity tied to AUM and client activity. This reduces dependence on any single product, smoothing revenues over quarters and supporting resilience in the 2–6 month horizon as client relationships and fee contracts persist.

Strategic Partnerships and Distribution

Partnerships with banks and institutions expand distribution and client access without proportionate fixed-cost increases. Over months this can accelerate AUM growth and lower customer acquisition cost, strengthening competitive positioning in wealth and advisory services and reinforcing recurring fee potential.

Positive FCF to Net Income Ratio

A positive free cash flow to net income ratio indicates some earnings are converting to cash despite headline losses. This suggests pockets of operational cash conversion that could be scaled or protected, offering a foundation to stabilize liquidity and support short-term restructuring or working capital needs.

Negative Factors

Negative Equity and High Leverage

Negative shareholders' equity combined with high leverage creates solvency risk and constrains financial flexibility. For a financial services firm, weak capital metrics impair regulatory standing, counterparty confidence and restrict the ability to invest in growth or withstand further market stress over the medium term.

Cash Flow and Liquidity Shortfalls

Sustained negative operating and free cash flows signal reliance on external funding or asset disposals to meet obligations. Liquidity weakness can force cost cuts, limit client service investments, and raise refinancing risk, directly threatening stability and growth prospects in the coming months.

Sharp Revenue and EPS Declines

Severe revenue and EPS contractions indicate loss of AUM, client attrition, or poor investment returns that erode the fee base. Over 2–6 months, such deteriorating top-line and profitability trends will pressure margins, cash generation and strategic options, making recovery and reinvestment harder.

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

DCM Financial Services Limited is facing significant financial difficulties across all key areas. The company is struggling with profitability, high leverage, and liquidity issues, which pose substantial risks to its financial stability and future growth prospects.

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: Positive

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 below the 20-day moving average (MA) of 5.28, below the 50-day MA of 5.37, and below the 200-day MA of 5.96, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 43.31 is Neutral, neither overbought nor oversold. The STOCH value of 18.34 is Positive, 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	₹1.59B	7.61	―	0.85%	27.19%	73.43%
MAHAPEXLTD	54 Neutral	₹1.40B	15.49	―	―	-6.94%	-97.47%
TCIFINANCE	54 Neutral	₹443.71M	12.03	―	―	797.65%	―
VIJIFIN	49 Neutral	₹485.93M	294.55	―	―	39.46%	―
WILLAMAGOR	49 Neutral	₹314.12M	-107.10	―	―	3048.97%	99.88%
DCMFINSERV	40 Underperform	₹110.63M	-6.58	―	―	-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.