DCM Shriram Limited (DCMSHRIRAM) AI Stock Analysis

• Market Cap: ₹183.79B
• Dividend Yield: 1.01%
• Average Volume (3M): 13.45K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 0.66
• 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: ₹1,192.00 ▼(-3.12% Downside)

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

DCM Shriram's presence across chemicals, sugar and farm solutions provides structural diversification of revenue and end markets. This multi-segment mix smooths cash flows across cycles, enables cross-selling and reduces dependence on any single commodity over the medium term.

Low Leverage and Solid Capital Structure

A low debt-to-equity ratio and a 55% equity ratio indicate strong balance-sheet headroom. This financial strength supports capital expenditure, working capital needs and resilience in downturns, enabling the company to fund operations or strategic moves without stressing liquidity.

Healthy Margins with Revenue Momentum

Sustained gross margin near 34% alongside double-digit revenue growth demonstrates effective cost management and pricing power in core businesses. This combination underpins durable operating profitability and provides flexibility to reinvest in capacity or mitigate commodity swings over months.

Negative Factors

Rising Total Debt Trend

Although leverage is currently moderate, the upward trend in total debt raises medium-term risk. If debt growth continues, interest burden and refinancing needs could limit financial flexibility and constrain investment or dividend policies during slower cycles.

Volatile Free Cash Flow Conversion

Operating cash conversion is strong, but free cash flow has been uneven and converts less than half of reported earnings. This volatility can impair the company’s ability to consistently fund capex, deleveraging or shareholder returns without relying on intermittent cash inflows.

Commodity and Energy Sensitivity

Key segments' margins and volumes are exposed to commodity cycles and energy/input cost swings. Persistent volatility in raw material or energy prices can compress margins and production economics, making medium-term earnings more uncertain despite operational strengths.

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 earns revenue through multiple streams, primarily from its agricultural inputs division, which includes fertilizers and crop protection products. The sugar segment contributes significantly to its earnings as well, with operations in sugar manufacturing and by-products like ethanol. The chemicals division generates revenue through the production and sale of industrial chemicals and allied products. Furthermore, income is generated from the renewable energy sector, particularly through power generation from solar and wind projects. Strategic partnerships with agricultural cooperatives and government initiatives also enhance the company's revenue potential, alongside a strong distribution network that facilitates the reach of its products to farmers and industrial clients.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	124.63B	120.77B	109.22B	115.47B	96.27B	83.08B
Gross Profit	41.19B	39.27B	32.72B	36.70B	35.54B	27.97B
EBITDA	13.27B	13.26B	9.63B	15.84B	17.63B	11.15B
Net Income	6.17B	6.04B	4.47B	9.11B	10.67B	6.73B
Balance Sheet
Total Assets	0.00	127.32B	115.49B	107.22B	93.71B	77.91B
Cash, Cash Equivalents and Short-Term Investments	9.64B	9.86B	6.59B	9.10B	15.12B	13.16B
Total Debt	0.00	25.29B	21.52B	17.07B	15.77B	15.21B
Total Liabilities	-70.04B	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: 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 Neutral. The current price of 1230.4 is above the 20-day moving average (MA) of 1160.02, above the 50-day MA of 1201.87, and above the 200-day MA of 1201.35, indicating a neutral trend. The MACD of -17.70 indicates Negative momentum. The RSI at 52.13 is Neutral, neither overbought nor oversold. The STOCH value of 87.89 is Negative, 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
HSCL	74 Outperform	₹232.24B	32.32	―	0.12%	-2.24%	31.43%
AKZOINDIA	69 Neutral	₹127.68B	6.41	―	3.04%	-3.03%	357.65%
VINATIORGA	69 Neutral	₹157.98B	35.67	―	0.48%	8.96%	17.70%
DCMSHRIRAM	66 Neutral	₹183.79B	27.70	―	1.01%	13.39%	36.62%
ATUL	64 Neutral	₹182.97B	30.79	―	0.41%	16.46%	43.59%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BASF	59 Neutral	₹157.67B	42.03	―	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.