DCM Shriram Limited (DCMSHRIRAM) AI Stock Analysis

• Market Cap: ₹165.49B
• Dividend Yield: 1.01%
• Average Volume (3M): 13.45K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 0.61
• Revenue Growth: 13.39%
• EPS Growth: 36.62%
• Country: IN
• Employees: 6,067
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Chemicals - Specialty
• EPS (TTM): 13.66
• Shares Outstanding: 155,942,290
• 10 Day Avg. Volume: 2,394
• 30 Day Avg. Volume: 13,447
• PEG Ratio: 0.77
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 57.76
• 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: 66 Neutral
• Price Target: ₹1,133.00 ▼(-7.92% Downside)
• Action: Reiterated Date: 11/22/25
• Date: Action: Reiterated 11/22/25

DCM Shriram Limited shows strong financial performance with robust revenue growth and efficient operations. However, technical indicators suggest a neutral to slightly bearish trend, and the valuation indicates moderate pricing with a low dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Diversified business model

The company's exposure to chemicals, sugar and farm solutions spreads revenue sources across industrial, commodity and agricultural markets. This structural diversification reduces cycle-driven volatility and supports steadier cash generation and capital allocation over the next 2–6 months.

Consistent revenue growth

Sustained top-line expansion (11.2% year) indicates stable demand and market execution across segments. Durable revenue growth supports reinvestment, capacity utilization and operational leverage, underpinning medium-term earnings resilience even amid commodity swings.

Healthy balance sheet and low leverage

A conservative capital structure with D/E ~0.36 and 55% equity gives room to fund capex, withstand cyclical downturns and pursue strategic investments. Lower leverage also limits interest burden, preserving operational cash flow for medium-term priorities.

Negative Factors

Moderate net profit margin

A 5% net margin constrains retained earnings and reduces buffer against input-cost or pricing shocks common in chemicals and sugar. Persistent margin pressure could limit ability to improve ROE and restrict long-term reinvestment without efficiency gains or pricing power improvements.

Volatile free cash flow conversion

Irregular FCF generation and a sub-1.0 FCF-to-income ratio indicate difficulty converting accounting profits into cash. This volatility can limit predictable funding for capex, dividends or debt reduction, reducing strategic flexibility over the medium term.

Rising total debt trend

Although leverage is currently low, the trend of increasing debt raises medium-term risk if commodity prices or margins deteriorate. Continued debt accumulation would amplify interest exposure and could constrain investment or capital-return policies if cash generation falters.

DCM Shriram Limited Business Overview & Revenue Model

Company Description

DCM Shriram Limited, together with its subsidiaries, engages in chloro-vinyl, sugar, agri-input, and other businesses in India and internationally. The company operates through Fertilisers, Chloro-Vinyl, Shriram Farm Solutions, Sugar, Bioseed, and Others segments. It manufactures and sells urea; caustic soda lye and flakes, and chlorine; sugar, ethanol, and Bagasse based cogen power plants; plant nutrition solutions, crop care chemicals, and hybrid seeds; caustic soda, chlorine, hydrogen, stable bleaching powder, calcium carbide, PVC resins, and aluminum chloride; and UPVC and aluminum windows and doors. The company also sells fuel comprising petrol and diesel. The company was formerly known as DCM Shriram Consolidated Limited and changed its name to DCM Shriram Limited. DCM Shriram Limited was incorporated in 1989 and is based in New Delhi, India. DCM Shriram Limited is a subsidiary of Sumant Investments Private Limited.

How the Company Makes Money

DCM Shriram primarily makes money by manufacturing and selling products across its business segments. (1) Chemicals: It earns revenue from sales of chlor-alkali and related chemical products to industrial customers; profitability in this segment is influenced by product mix, plant utilization, input/energy costs, and market pricing for key chemicals. (2) Sugar: It generates revenue from selling sugar and monetizing by-products/co-products produced during sugar manufacturing; earnings in this segment depend on volumes produced, realizations for sugar and co-products, and sector-specific regulatory and commodity-price dynamics. (3) Farm Solutions: It earns revenue from selling agricultural inputs (such as crop protection and related farm products) and providing associated distribution/brand-led services to farmers and rural markets. Overall, the company’s earnings are driven by sales volumes and realizations across these segments, along with cost control (especially energy and raw materials) and the cyclicality of commodity-linked end markets.

DCM Shriram Limited Financial Statement Overview

Summary

DCM Shriram Limited exhibits robust growth in revenue and efficient operations, as reflected in stable margins and effective cost management. The balance sheet is strong with low leverage and good equity ratios, though rising debt levels warrant caution. Cash flow generation is improving, but sustaining free cash flow remains a challenge. Overall, the financial health is solid with areas for potential enhancement in profitability and cash flow stability.

Income Statement

DCM Shriram Limited demonstrated strong revenue growth with a 11.2% increase from 2024 to 2025. The company's gross profit margin is solid at 33.8%, indicating effective cost management. However, the net profit margin is moderate at 5.0%, suggesting room for improving profitability. Consistent EBIT and EBITDA margins highlight operational efficiency, although there has been a slight decline in EBIT margin over the years.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.36, indicating low leverage and a strong equity base. Return on equity is healthy at 8.6%, showcasing effective use of shareholder capital. The equity ratio stands at 55.0%, affirming a robust capital structure. Nonetheless, there has been an increase in total debt over the years, which could be a potential risk if not managed well.

Cash Flow

The cash flow statement reveals a positive trajectory in operating cash flow, supporting the company's liquidity needs. The operating cash flow to net income ratio is 1.87, indicating strong cash generation relative to profit. However, the free cash flow growth rate is volatile, moving from negative in previous periods to positive, which suggests challenges in sustaining free cash flow. The free cash flow to net income ratio is 0.47, showing room for improvement in converting profits into free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	127.77B	120.77B	109.22B	115.47B	96.27B	83.08B
Gross Profit	38.90B	39.27B	32.72B	36.70B	35.54B	27.97B
EBITDA	15.61B	13.26B	9.63B	15.84B	17.63B	11.15B
Net Income	7.12B	6.04B	4.47B	9.11B	10.67B	6.73B
Balance Sheet
Total Assets	132.21B	127.32B	115.49B	107.22B	93.71B	77.91B
Cash, Cash Equivalents and Short-Term Investments	13.13B	9.86B	6.59B	9.10B	15.12B	13.16B
Total Debt	21.77B	25.29B	21.52B	17.07B	15.77B	15.21B
Total Liabilities	59.76B	57.28B	50.27B	45.28B	38.69B	31.43B
Stockholders Equity	72.25B	70.04B	65.22B	61.94B	55.02B	46.48B
Cash Flow
Free Cash Flow	11.72B	2.83B	-5.16B	-5.07B	4.50B	16.33B
Operating Cash Flow	15.24B	11.28B	7.94B	12.96B	12.24B	18.87B
Investing Cash Flow	-4.70B	-8.50B	-10.70B	-15.43B	-9.04B	-6.42B
Financing Cash Flow	-8.42B	-13.90M	1.69B	-2.35B	-2.59B	-9.18B

DCM Shriram Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1230.40
• 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:DCMSHRIRAM, the sentiment is Negative. The current price of 1230.4 is above the 20-day moving average (MA) of 1041.76, above the 50-day MA of 1112.97, and above the 200-day MA of 1208.15, indicating a neutral trend. The MACD of -27.75 indicates Negative momentum. The RSI at 50.22 is Neutral, neither overbought nor oversold. The STOCH value of 90.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DCMSHRIRAM.

DCM Shriram Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSCL	74 Outperform	₹225.29B	31.76	―	0.12%	-2.24%	31.43%
AKZOINDIA	69 Neutral	₹131.78B	48.69	―	3.04%	-3.03%	357.65%
VINATIORGA	69 Neutral	₹144.62B	40.85	―	0.48%	8.96%	17.70%
DCMSHRIRAM	66 Neutral	₹165.49B	23.03	―	1.01%	13.39%	36.62%
ATUL	64 Neutral	₹182.28B	28.12	―	0.41%	16.46%	43.59%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BASF	59 Neutral	₹147.45B	40.15	―	0.51%	0.43%	-42.29%

DCM Shriram Limited Corporate Events

DCM Shriram Sets Q3 FY26 Earnings Call for January 23

DCM Shriram Limited has scheduled its Q3 FY26 earnings conference call for analysts and investors on Friday, January 23, 2026, at 4:00 p.m. IST, following the announcement of its financial results for the quarter ended December 31, 2025. The call will feature Chairman and Senior Managing Director Ajay S. Shriram and other key members of the senior management team, underscoring the company’s intent to engage directly with market participants and provide detailed insights into its quarterly performance and business outlook, which may influence investor perception and transparency around its multi-segment operations.