DCM Shriram Limited (DCMSHRIRAM) AI Stock Analysis

• Market Cap: ₹193.74B
• Dividend Yield: 0.72%
• Average Volume (3M): 4.46K
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.41
• Revenue Growth: 13.11%
• EPS Growth: 25.78%
• Country: IN
• Employees: 6,067
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Chemicals - Specialty
• EPS (TTM): 7.27
• Shares Outstanding: 155,942,290
• 10 Day Avg. Volume: 2,631
• 30 Day Avg. Volume: 4,465
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹1,492.00
• Price Target Upside: 19.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ₹1,492.00 ▲(19.36% Upside)

DCM Shriram Limited's strong financial performance, notably its revenue growth and efficient operations, is the primary driver of its overall score. Technical analysis suggests bullish momentum, though caution is advised due to overbought signals. Valuation metrics indicate the stock may be overvalued relative to its earnings. The absence of recent earnings call data and corporate events means these factors do not influence the score.

DCM Shriram Limited Business Overview & Revenue Model

Company Description

DCM Shriram Limited (DCMSHRIRAM) is an Indian conglomerate with diverse operations in agriculture, chemicals, and consumer goods. The company is involved in the manufacturing of fertilizers, chlor-vinyl products, sugar, and bioseed. It also engages in rural retailing and offers Fenesta windows, a popular brand in the building materials sector. With a strong presence in both urban and rural markets, DCM Shriram aims to leverage its integrated business model to deliver sustainable growth.

How the Company Makes Money

DCM Shriram Limited generates revenue through multiple streams primarily categorized into the following sectors: Agriculture, Chemicals, and Consumer Goods. In the agriculture sector, the company produces and sells fertilizers and bioseeds, aiming to support the agricultural needs of farmers. The chemicals segment includes the production of chlor-vinyl, caustic soda, and other industrial chemicals, which are supplied to various industries. The sugar business involves the production and sale of sugar and other by-products, such as molasses and ethanol. The consumer goods segment features Fenesta windows, which are marketed to building and construction clients. Additionally, the company operates rural retail outlets that provide products and services to the farming community. Strategic partnerships and a robust distribution network enhance its market reach, contributing to its overall financial performance.

DCM Shriram Limited Financial Statement Overview

Summary

DCM Shriram Limited shows strong revenue growth and efficient operations with stable margins and effective cost management. The balance sheet is strong with low leverage and good equity ratios, but rising debt levels are a concern. Cash flow generation is improving, though sustaining free cash flow remains a challenge. Overall, financial health is solid with potential for improvement 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	120.60B	119.95B	108.65B	114.79B	95.73B	82.82B
Gross Profit	33.53B	19.44B	14.95B	37.11B	32.57B	25.82B
EBITDA	14.39B	13.30B	10.75B	17.23B	18.70B	12.25B
Net Income	6.04B	6.04B	4.47B	9.11B	10.67B	6.73B
Balance Sheet
Total Assets	127.32B	127.32B	115.49B	107.22B	93.71B	77.91B
Cash, Cash Equivalents and Short-Term Investments	9.86B	9.86B	6.59B	10.09B	15.12B	15.31B
Total Debt	25.29B	25.29B	21.52B	17.07B	15.77B	15.21B
Total Liabilities	57.28B	57.28B	50.27B	45.28B	38.69B	31.43B
Stockholders Equity	70.04B	70.04B	65.22B	61.94B	55.02B	46.48B
Cash Flow
Free Cash Flow	0.00	2.83B	-5.16B	-5.07B	4.50B	16.33B
Operating Cash Flow	0.00	11.28B	7.94B	12.96B	12.24B	18.87B
Investing Cash Flow	0.00	-8.50B	-10.70B	-15.43B	-9.04B	-6.42B
Financing Cash Flow	0.00	-13.90M	1.69B	-2.35B	-2.59B	-9.18B

DCM Shriram Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1250.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DCMSHRIRAM, the sentiment is Neutral. The current price of 1250.05 is below the 20-day moving average (MA) of 1281.76, below the 50-day MA of 1326.74, and above the 200-day MA of 1139.14, indicating a neutral trend. The MACD of -27.76 indicates Positive momentum. The RSI at 39.79 is Neutral, neither overbought nor oversold. The STOCH value of 43.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:DCMSHRIRAM.

DCM Shriram Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BASF	69 Neutral	₹200.37B	51.27		0.43%	5.63%	-41.01%
VINATIORGA	67 Neutral	₹179.51B	41.97		0.41%	14.93%	21.24%
HSCL	66 Neutral	₹225.79B	37.32		0.13%	2.17%	28.95%
AKZOINDIA	65 Neutral	₹155.72B	37.82		2.64%	1.28%	-5.89%
DCMSHRIRAM	64 Neutral	₹193.74B	31.38		0.72%	13.11%	25.78%
Sector *	63 Neutral	$20.49B	14.78	-2.88%	3.11%	1.86%	-5.76%
ATUL	63 Neutral	₹188.42B	37.82		0.39%	17.95%	50.93%

DCM Shriram Limited Corporate Events

DCM Shriram Gains Tax Relief from ITAT Ruling

DCM Shriram Limited has received an order from the Income-tax Appellate Tribunal (ITAT) in New Delhi, which has adjudicated on pending tax litigations for several assessment years, granting significant relief in tax liabilities. The tribunal’s decision includes a directive for the Assessing Officer to verify revised claims for deductions under the Income-tax Act, potentially impacting the company’s tax obligations positively, although it does not materially affect the profit and loss statement.