DCW Ltd. (DCW) AI Stock Analysis

• Market Cap: ₹18.64B
• Dividend Yield: 0.16%
• Average Volume (3M): 57.82K
• Price to Earnings (P/E): 53.3
• Beta (1Y): 1.45
• 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: 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: ₹78.00
• Price Target Upside: 23.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: ₹78.00 ▲(23.54% 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 Ltd. (DCW) is a UK-based company specializing in the design, manufacturing, and distribution of high-quality water management solutions and equipment. Operating primarily in the environmental and infrastructure sectors, DCW offers a range of products including drainage systems, water treatment solutions, and bespoke engineering services aimed at enhancing water quality and management across various applications.

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 improved 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. Reduced 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: 63.14
• 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 63.14 is below the 20-day moving average (MA) of 69.12, below the 50-day MA of 72.79, and below the 200-day MA of 77.54, indicating a bearish trend. The MACD of -2.33 indicates Positive momentum. The RSI at 22.22 is Positive, neither overbought nor oversold. The STOCH value of 15.17 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	₹60.13B	9.71	―	1.92%	-3.31%	19.02%
EPIGRAL	70 Outperform	₹73.28B	16.78	―	0.35%	17.88%	68.05%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
INDIAGLYCO	59 Neutral	₹60.72B	24.91	―	0.51%	7.46%	33.78%
GULPOLY	58 Neutral	₹8.76B	31.15	―	0.22%	40.24%	21.81%
DCW	57 Neutral	₹18.64B	53.33	―	0.16%	2.24%	181.90%