DCW Ltd. (DCW) AI Stock Analysis

• Market Cap: ₹20.10B
• Dividend Yield: 0.18%
• Average Volume (3M): 57.82K
• Price to Earnings (P/E): 40.2
• Beta (1Y): 1.43
• Revenue Growth: 0.95%
• EPS Growth: 488.81%
• Country: IN
• Employees: 1,761
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.47
• Shares Outstanding: 295,155,030
• 10 Day Avg. Volume: 56,614
• 30 Day Avg. Volume: 57,823
• PEG Ratio: 0.83
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 20.67
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹61.00 ▲(7.21% Upside)

DCW Ltd.'s overall stock score is primarily influenced by its strong financial performance, characterized by revenue growth and operational improvements. However, the technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued, which weigh down the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for DCW's products and services, enhancing its market position and long-term viability.

Operational Efficiency

Improved margins reflect enhanced operational efficiency, which can lead to better profitability and competitive advantage over time.

Financial Stability

A stable equity base and reduced leverage enhance financial flexibility, supporting sustainable growth and resilience to market fluctuations.

Negative Factors

Net Profit Margin

A low net profit margin suggests potential inefficiencies in cost management or pricing strategy, which could impact long-term profitability.

Free Cash Flow Growth

Declining free cash flow growth may indicate challenges in maintaining cash flow levels, potentially affecting future investment and expansion capabilities.

Return on Equity

Modest ROE suggests moderate efficiency in using equity to generate profits, which could limit the company's ability to attract investment.

DCW Ltd. Business Overview & Revenue Model

Company Description

DCW Limited operates as a heavy chemical manufacturing company in India. It operates through Soda Ash, Caustic Soda, PVC, SIOP, and C-PVC segments. The company's products include caustic soda, liquid chlorine, hydrochloric acid, synthetic rutile, trichloroethylene, synthetic and yellow iron oxide, ferric chloride, utox, poly vinyl chloride, soda ash, and sodium and ammonium bicarbonate. It also exports its products. The company was formerly known as Dhrangadhra Chemical Works Limited. DCW Limited was founded in 1925 and is headquartered in Mumbai, India.

How the Company Makes Money

DCW generates revenue through multiple streams including the sale of its proprietary products such as drainage systems and water treatment solutions, which are in demand across municipal, industrial, and commercial sectors. The company also earns income from providing bespoke engineering services that cater to specific client needs, ensuring tailored solutions for complex water management challenges. Additionally, DCW has established strategic partnerships with construction firms and environmental agencies that further enhance its market reach and credibility, contributing to stable revenue growth. The company may also benefit from government contracts and grants aimed at sustainable water management initiatives, adding an extra layer of financial stability.

DCW Ltd. Financial Statement Overview

Summary

DCW Ltd. shows strong revenue growth and operational improvements, with enhanced margins and consistent cash flow generation. The company is financially stable with a good equity ratio, but the low net profit margin and modest ROE suggest areas for improvement. The reduction in leverage enhances financial flexibility.

Income Statement

The company has demonstrated consistent revenue growth, with a noticeable increase in revenue from the previous year. Gross profit margin and EBIT margin have improved significantly, indicating enhanced operational efficiency. However, the net profit margin remains relatively low, which suggests room for improvement in cost management or pricing strategy.

Balance Sheet

The balance sheet shows a stable equity base with a satisfactory equity ratio, indicating a good level of financial stability. The debt-to-equity ratio has decreased over the years, reflecting a reduction in leverage. Return on Equity (ROE) is modest, suggesting moderate efficiency in utilizing equity to generate profits.

Cash Flow

Cash flow from operations is strong, covering capital expenditures and yielding positive free cash flow consistently. However, there is a decline in free cash flow growth, which could indicate potential challenges in maintaining cash flow levels. The operating cash flow to net income ratio is favorable, showing effective conversion of income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.76B	20.00B	18.61B	26.34B	24.49B	14.59B
Gross Profit	7.90B	6.00B	8.86B	13.40B	10.28B	7.03B
EBITDA	2.23B	1.93B	1.83B	4.91B	3.38B	2.14B
Net Income	349.45M	302.84M	156.60M	1.92B	1.08B	37.93M
Balance Sheet
Total Assets	0.00	21.78B	20.89B	20.63B	19.03B	18.75B
Cash, Cash Equivalents and Short-Term Investments	182.96M	182.96M	1.70B	1.68B	1.12B	1.22B
Total Debt	0.00	4.27B	4.39B	5.08B	5.56B	6.24B
Total Liabilities	-10.33B	11.45B	10.57B	10.38B	11.01B	11.88B
Stockholders Equity	10.33B	10.33B	10.32B	10.25B	8.02B	6.87B
Cash Flow
Free Cash Flow	0.00	1.14B	1.58B	1.40B	1.40B	2.00B
Operating Cash Flow	0.00	1.91B	2.52B	2.26B	1.78B	2.18B
Investing Cash Flow	0.00	-1.12B	-986.28M	-1.65B	515.56M	-778.50M
Financing Cash Flow	0.00	-779.57M	-1.53B	-1.39B	-1.92B	-985.34M

DCW Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DCW, the sentiment is Negative. The current price of 56.9 is below the 20-day moving average (MA) of 65.31, below the 50-day MA of 66.44, and below the 200-day MA of 74.69, indicating a bearish trend. The MACD of -2.24 indicates Positive momentum. The RSI at 29.73 is Positive, neither overbought nor oversold. The STOCH value of 2.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DCW.

DCW Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GHCL	66 Neutral	₹59.23B	10.38	―	2.09%	-5.14%	7.25%
INDIAGLYCO	65 Neutral	₹62.85B	25.78	―	0.46%	5.61%	33.63%
EPIGRAL	63 Neutral	₹72.54B	16.61	―	0.40%	8.51%	32.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GULPOLY	59 Neutral	₹8.64B	20.26	―	0.22%	35.17%	92.73%
DCW	55 Neutral	₹20.10B	40.21	―	0.18%	0.95%	488.81%

DCW Ltd. Corporate Events

DCW Limited Discusses Q2 2025 Financial Performance in Earnings Call

DCW Limited conducted an earnings conference call with investors and analysts to discuss its financial performance for the second quarter and half-year ending September 30, 2025. The audio recording of the call is available on the company’s website, providing stakeholders with insights into the company’s operational and financial strategies.

DCW Limited Schedules Earnings Call to Discuss Q2/H1 FY26 Results

DCW Limited has announced an upcoming earnings conference call scheduled for November 5, 2025, to discuss its unaudited financial results for the second quarter and half-year of fiscal year 2026. This call is an opportunity for investors and analysts to gain insights into the company’s financial performance, potentially impacting stakeholders’ perspectives on DCW’s market positioning and operational strategies.

DCW Limited Sees Positive Outcome as Tax Demand Deleted

DCW Limited has announced that the Income Tax Authority has deleted a tax demand of Rs. 5.63 Crores for the assessment year 2017-18. This development is a positive outcome for the company as it alleviates a significant financial liability, potentially improving its financial standing and operational focus.

DCW Limited Announces Court-Convened Meeting for Amalgamation Scheme

DCW Limited has announced a court-convened meeting for its equity shareholders and creditors to discuss a proposed Scheme of Amalgamation involving Dhrangadhara Trading Company Private Limited and Sahu Brothers Private Limited. This strategic move, directed by the National Company Law Tribunal, aims to streamline operations and potentially enhance DCW’s market positioning by integrating these entities, which could have significant implications for stakeholders.

DCW Limited Announces Court-Convened Meeting for Amalgamation Scheme

DCW Limited has announced a court-convened general meeting scheduled for November 15, 2025, as directed by the National Company Law Tribunal, Ahmedabad Bench. The meeting aims to discuss the proposed Scheme of Amalgamation involving Dhrangadhara Trading Company Private Limited and Sahu Brothers Private Limited with DCW Limited. This amalgamation is expected to streamline operations and potentially enhance the company’s market position by integrating resources and capabilities.

DCW Ltd. Announces Virtual AGM and Online Access to Annual Report

DCW Ltd. has announced the scheduling of its 86th Annual General Meeting (AGM) for September 29, 2025, which will be conducted via video conference. The company has also provided a weblink to its Annual Report for FY 2024-25 on its website, ensuring shareholders can access the document online. This move aligns with regulatory requirements and reflects DCW Ltd.’s commitment to maintaining transparency and accessibility for its stakeholders.

DCW Limited Launches ‘Saksham Niveshak’ Campaign to Engage Shareholders

DCW Limited has launched the ‘Saksham Niveshak’ campaign, a 100-day initiative aimed at reaching out to shareholders with unpaid or unclaimed dividends. This campaign, in response to a directive from the Ministry of Corporate Affairs, encourages shareholders to update their KYC details and claim dividends to prevent their transfer to the Investor Education and Protection Fund, thus enhancing shareholder engagement and compliance.

DCW Limited Urges Shareholders to Update KYC Details to Avoid Payment Withholding

DCW Limited has announced an update regarding the requirement for shareholders holding physical securities to furnish their PAN, KYC, and bank account details in compliance with SEBI regulations. This update is crucial as failure to provide the necessary details will result in withholding of dividends and other payments, emphasizing the importance of compliance for shareholders to ensure timely receipt of their entitlements.