DCW Ltd. (DCW) AI Stock Analysis

• Market Cap: ₹20.27B
• Dividend Yield: 0.15%
• Average Volume (3M): 69.91K
• Price to Earnings (P/E): 58.0
• Beta (1Y): 1.52
• Revenue Growth: 2.24%
• EPS Growth: 181.90%
• Country: IN
• Employees: 1,761
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.39
• Shares Outstanding: 295,155,030
• 10 Day Avg. Volume: 68,761
• 30 Day Avg. Volume: 69,909
• 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: ₹78.00
• Price Target Upside: 13.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: ₹78.00 ▲(13.57% Upside)

DCW Ltd.'s overall score is primarily influenced by its strong financial performance, characterized by revenue growth and operational improvements. However, the technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation, which negatively impacts the overall score.

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 Ltd. generates revenue primarily through the production and sale of its chemical products. The company's key revenue streams include the sale of caustic soda, soda ash, and PVC resins to industries that use these chemicals as inputs in their manufacturing processes. Additionally, DCW benefits from strategic partnerships and long-term contracts with industrial clients, ensuring steady demand for its products. The company's earnings are also influenced by factors such as fluctuations in raw material prices, operational efficiency, and capacity utilization rates in its production facilities. By maintaining a diverse product portfolio and strong customer relationships, DCW Ltd. sustains its revenue generation in the competitive chemical industry.

DCW Ltd. Financial Statement Overview

Summary

DCW Ltd. shows strong revenue growth and improved operational efficiency with better margins. However, the low net profit margin and modest ROE indicate areas for improvement. The company has reduced leverage, enhancing 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 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.00B	20.00B	18.61B	26.34B	24.49B	14.59B
Gross Profit	6.90B	6.00B	1.61B	13.40B	10.28B	7.03B
EBITDA	2.10B	1.93B	1.83B	4.91B	3.38B	2.14B
Net Income	302.84M	302.84M	156.60M	1.92B	1.08B	37.93M
Balance Sheet
Total Assets	21.78B	21.78B	20.89B	20.63B	19.03B	18.75B
Cash, Cash Equivalents and Short-Term Investments	2.22B	182.96M	1.70B	1.68B	1.12B	1.22B
Total Debt	4.27B	4.27B	4.39B	5.08B	5.56B	6.24B
Total Liabilities	11.45B	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: 68.68
• 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 68.68 is below the 20-day moving average (MA) of 73.82, below the 50-day MA of 75.25, and below the 200-day MA of 79.53, indicating a bearish trend. The MACD of -1.11 indicates Positive momentum. The RSI at 28.31 is Positive, neither overbought nor oversold. The STOCH value of 6.59 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	74 Outperform	₹55.91B	9.03	17.89%	2.06%	-3.31%	19.02%
EPIGRAL	70 Outperform	₹71.63B	16.41	18.78%	0.36%	17.88%	68.05%
GULPOLY	58 Neutral	₹9.26B	32.92	4.02%	0.20%	40.24%	21.81%
INDIAGLYCO	58 Neutral	₹51.77B	21.24	10.24%	0.60%	7.46%	33.78%
DCW	57 Neutral	₹20.27B	58.01	―	0.15%	2.24%	181.90%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%