DCW Ltd. (DCW) AI Stock Analysis

• Market Cap: ₹15.96B
• Dividend Yield: 0.16%
• Average Volume (3M): 57.82K
• Price to Earnings (P/E): 31.9
• Beta (1Y): 1.40
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹61.00 ▲(5.63% Upside)

The overall stock score for DCW Ltd. 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 valuation suggests the stock may be overvalued, which negatively impacts the score. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust market demand and effective business strategies, supporting long-term financial health.

Operational Efficiency

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

Leverage Reduction

Reduced leverage enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Low Net Profit Margin

A low net profit margin suggests challenges in cost management or pricing strategy, potentially impacting long-term profitability.

Decline in Free Cash Flow Growth

Declining free cash flow growth may hinder the company's ability to fund new projects or return capital to shareholders, affecting future growth.

Modest Return on Equity

A modest ROE indicates limited efficiency in generating profits from equity, which could constrain shareholder returns over the long term.

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: 57.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 57.75 is below the 20-day moving average (MA) of 57.96, below the 50-day MA of 61.00, and below the 200-day MA of 72.25, indicating a bearish trend. The MACD of -1.65 indicates Positive momentum. The RSI at 33.64 is Neutral, neither overbought nor oversold. The STOCH value of 9.03 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
BEPL	69 Neutral	₹21.48B	12.89	―	4.47%	―	―
GHCL	66 Neutral	₹52.48B	9.20	―	2.10%	-5.14%	7.25%
INDIAGLYCO	65 Neutral	₹63.88B	22.77	―	0.47%	5.61%	33.63%
EPIGRAL	63 Neutral	₹48.26B	11.96	―	0.46%	8.51%	32.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GULPOLY	59 Neutral	₹9.09B	21.31	―	0.22%	35.17%	92.73%
DCW	55 Neutral	₹15.96B	31.93	―	0.16%	0.95%	488.81%

DCW Ltd. Corporate Events

DCW Ltd Closes Trading Window Ahead of Q3 FY2025 Results

DCW Limited has announced the closure of its trading window for designated persons and their immediate relatives from 1 January 2026 until 48 hours after the declaration of its financial results for the third quarter and nine months ended 31 December 2025, in line with its Code of Conduct and the Securities and Exchange Board of India’s insider trading regulations. The move underscores the company’s adherence to regulatory norms on preventing insider trading and signals the forthcoming release of key quarterly financial results, which are pending board approval at a meeting to be scheduled and disclosed in due course.

DCW Limited Announces Amalgamation Proceedings

DCW Limited has announced the proceedings of a court-convened general meeting of its equity shareholders regarding the scheme of amalgamation with Dhrangadhara Trading Company Private Limited and Sahu Brothers Private Limited. This strategic move indicates DCW Limited’s efforts to consolidate its operations and potentially enhance its market position, which could have significant implications for its stakeholders.

DCW Limited Advances Strategic Amalgamation with Key Entities

DCW Limited held a court-convened meeting with its secured creditors to discuss the amalgamation with Dhrangadhara Trading Company Private Limited and Sahu Brothers Private Limited. This strategic merger aims to enhance DCW’s market presence and operational efficiency, potentially impacting stakeholders positively by streamlining operations and expanding its market reach.

DCW Limited Advances Amalgamation with Key Creditors’ Meeting

DCW Limited has conducted a meeting with its unsecured creditors to discuss the scheme of amalgamation with Dhrangadhara Trading Company Private Limited and Sahu Brothers Private Limited. This strategic move is expected to impact the company’s operations by potentially increasing efficiency and consolidating its market presence, which could have significant implications for stakeholders.

DCW Limited’s Amalgamation Scheme Approved by Shareholders

DCW Limited announced the approval of a scheme of amalgamation involving Dhrangadhara Trading Company Private Limited and Sahu Brothers Private Limited, which was sanctioned by the National Company Law Tribunal. The equity shareholders of DCW Limited approved the resolution with the requisite majority through a meeting conducted via video conferencing, which included remote e-voting facilities.

DCW Limited Secures Creditor Approval for Amalgamation Scheme

DCW Limited announced the successful outcome of a meeting held with its secured creditors, as directed by the National Company Law Tribunal (NCLT), regarding the Scheme of Amalgamation with Dhrangadhara Trading Company Private Limited and Sahu Brothers Private Limited. The resolution for the amalgamation was approved by the secured creditors with the requisite majority, marking a significant step in the company’s strategic consolidation efforts, which could potentially enhance its market position and operational efficiencies.

DCW Limited Secures Creditor Approval for Amalgamation

DCW Limited has successfully held a meeting with its unsecured creditors, as directed by the National Company Law Tribunal (NCLT), to discuss the Scheme of Amalgamation with Dhrangadhara Trading Company Private Limited and Sahu Brothers Private Limited. The resolution for the amalgamation was approved by the creditors with the requisite majority, marking a significant step in the company’s strategic consolidation efforts.

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.