DCM Shriram Industries Limited (DCMSRIND) AI Stock Analysis

• Market Cap: ₹14.90B
• Dividend Yield: 1.17%
• Average Volume (3M): 5.03K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 1.00
• Revenue Growth: -3.72%
• EPS Growth: -50.02%
• Country: IN
• Employees: 2,372
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Food Confectioners
• EPS (TTM): -0.36
• Shares Outstanding: 86,992,180
• 10 Day Avg. Volume: 3,492
• 30 Day Avg. Volume: 5,025
• PEG Ratio: -1.26
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 35.90
• 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: 69 Neutral
• Price Target: ₹190.00 ▲(12.79% Upside)

DCM Shriram Industries Limited demonstrates a stable financial position with effective cost management and a solid equity base. The technical indicators show positive momentum, though valuation metrics suggest limited upside without earnings growth. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Cost Management

Effective cost management allows the company to maintain profitability even when revenue growth is challenged, enhancing long-term financial stability.

Debt Management

A manageable debt level ensures financial flexibility and reduces risk, supporting sustainable operations and potential growth initiatives.

Operating Cash Flow

Effective conversion of earnings into cash supports liquidity and operational resilience, enabling the company to fund growth and manage obligations.

Negative Factors

Revenue Growth Challenges

Erratic revenue growth indicates potential difficulties in maintaining sales momentum, which could impact long-term business expansion and market competitiveness.

Inconsistent Free Cash Flow

Inconsistent free cash flow generation poses challenges for funding capital expenditures and strategic initiatives, potentially affecting long-term growth.

Profit Margin Volatility

Volatile profit margins suggest potential operational inefficiencies or market pressures, which could hinder consistent profitability and strategic planning.

DCM Shriram Industries Limited Business Overview & Revenue Model

Company Description

DCM Shriram Industries Limited (DCMSRIND) is a diversified Indian company engaged in various sectors including agribusiness, chemicals, and textiles. The company operates through multiple verticals such as sugar production, manufacturing of polyvinyl chloride (PVC) resin, and the production of agrochemicals, serving both domestic and international markets. With a strong emphasis on sustainability and innovation, DCMSRIND focuses on delivering high-quality products to meet the needs of its customers while contributing to agricultural development and industrial growth.

How the Company Makes Money

DCM Shriram Industries Limited generates revenue through diverse streams including the sale of sugar, PVC resin, and agrochemicals. The company's sugar segment benefits from both the production and sale of sugar and by-products like molasses and bagasse. The chemicals segment, particularly the production of PVC resin, caters to industries such as construction and packaging, providing a stable revenue source. Additionally, the agrochemical division contributes to earnings through the sale of pesticides and fertilizers. The company also benefits from strategic partnerships and collaborations that enhance its distribution capabilities and market reach, further solidifying its financial performance.

DCM Shriram Industries Limited Financial Statement Overview

Summary

DCM Shriram Industries Limited shows stable profitability and a solid balance sheet, but faces challenges in revenue growth and free cash flow consistency. The company's financial health is supported by effective cost management and manageable debt levels, though improvements in revenue generation and cash flow stability are needed.

Income Statement

The company has demonstrated stable gross profit margins with slight fluctuations over the years. Despite a decrease in total revenue from 2023 to 2024, the company managed to increase its net income, showcasing improved cost management and efficiency. However, the net profit margin and EBIT margin have shown inconsistency, indicating some volatility in performance. The revenue growth has been erratic, with a noticeable drop in 2024, highlighting potential challenges in maintaining sales momentum. Overall, the profitability metrics suggest moderate performance with room for improvement in revenue generation.

Balance Sheet

DCM Shriram Industries Limited maintains a solid equity base with a healthy equity ratio, which suggests a stable financial foundation. The debt-to-equity ratio is manageable, indicating that the company is not overly leveraged, which reduces financial risk. Return on equity shows variability, reflecting fluctuations in profitability and efficiency in using shareholders' equity. The balance sheet reflects a cautiously positive outlook, with strengths in equity stability and debt management, though attention is needed on improving ROE consistency.

Cash Flow

The company has shown strong operating cash flow to net income ratios, indicating effective conversion of earnings into cash. However, free cash flow generation has been inconsistent, with significant negative figures in earlier years. Although there is a positive free cash flow trend in recent periods, the growth rate has been volatile, suggesting challenges in sustaining cash flow improvements. The cash flow statement indicates operational vigor but highlights the need for better capital expenditure management to ensure stable free cash flow generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.84B	20.39B	20.83B	23.51B	21.11B	18.71B
Gross Profit	6.09B	5.91B	7.82B	2.35B	6.09B	4.89B
EBITDA	2.10B	2.30B	2.47B	1.60B	1.65B	1.74B
Net Income	869.80M	1.01B	1.15B	601.60M	662.43M	647.56M
Balance Sheet
Total Assets	0.00	23.11B	21.99B	19.51B	17.79B	16.81B
Cash, Cash Equivalents and Short-Term Investments	762.91M	996.90M	554.16M	3.22B	318.73M	803.60M
Total Debt	0.00	5.34B	5.29B	5.10B	5.66B	5.08B
Total Liabilities	-8.99B	14.12B	13.84B	12.34B	11.07B	10.64B
Stockholders Equity	8.99B	8.99B	8.15B	7.17B	6.72B	6.17B
Cash Flow
Free Cash Flow	0.00	432.10M	409.06M	1.16B	-757.58M	1.68B
Operating Cash Flow	0.00	1.22B	766.36M	1.69B	590.26M	2.25B
Investing Cash Flow	0.00	-933.52M	-432.53M	-678.80M	-711.52M	-983.93M
Financing Cash Flow	0.00	-133.82M	-223.99M	-1.01B	4.98M	-1.50B

DCM Shriram Industries Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 168.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DCMSRIND, the sentiment is Neutral. The current price of 168.45 is above the 20-day moving average (MA) of 165.67, below the 50-day MA of 168.77, and above the 200-day MA of 167.78, indicating a neutral trend. The MACD of 1.01 indicates Negative momentum. The RSI at 50.27 is Neutral, neither overbought nor oversold. The STOCH value of 74.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:DCMSRIND.

DCM Shriram Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCMSRIND	69 Neutral	₹14.90B	24.45	―	1.17%	-3.72%	-50.02%
DALMIASUG	68 Neutral	₹27.79B	7.50	―	1.94%	17.71%	18.17%
BANARISUG	66 Neutral	₹44.99B	36.90	―	0.35%	-7.81%	-6.64%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TRIVENI	61 Neutral	₹78.05B	29.85	―	0.70%	14.75%	-15.81%
BALRAMCHIN	58 Neutral	₹91.38B	22.56	―	0.78%	9.74%	-6.32%
RENUKA	46 Neutral	₹62.24B	-15.66	―	―	-18.81%	-57.61%

DCM Shriram Industries Limited Corporate Events

DCM Shriram Industries Credit Ratings Under Review Amid Proposed Scheme

DCM Shriram Industries Limited announced that CARE Ratings has reviewed its credit ratings for long-term and short-term bank facilities and fixed deposits, maintaining them but keeping them on a watchlist with negative implications. This decision is linked to a proposed Scheme of Arrangement, which may impact the company’s financial stability and market perception, potentially affecting stakeholders’ confidence.