DIC India Limited (DICIND) AI Stock Analysis

• Market Cap: ₹4.30B
• Dividend Yield: 0.82%
• Average Volume (3M): 625.00
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.69
• Revenue Growth: 1.34%
• EPS Growth: 283.51%
• Country: IN
• Employees: 347
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 6.39
• Shares Outstanding: 9,178,977
• 10 Day Avg. Volume: 770
• 30 Day Avg. Volume: 625
• PEG Ratio: -0.17
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 75.34
• 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: 59 Neutral
• Price Target: ₹527.00 ▲(8.48% Upside)

DIC India Limited's overall stock score is primarily influenced by its strong financial recovery and robust balance sheet, which are offset by bearish technical indicators and moderate valuation metrics. The lack of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

The company's revenue growth indicates a successful recovery and expansion in its market, reflecting effective strategies in capturing demand and enhancing its competitive position.

Balance Sheet Health

A strong balance sheet with minimal leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Profit Margin Improvement

Improved profit margins suggest effective cost management and operational efficiency, contributing to better profitability and long-term financial health.

Negative Factors

Free Cash Flow Challenges

Limited free cash flow generation can constrain the company's ability to reinvest in growth initiatives and manage financial obligations, potentially impacting future expansion.

Asset Decline Concern

A decline in total assets may limit the company's capacity to leverage its resources for growth and expansion, potentially affecting its competitive position in the long term.

Low EBIT and EBITDA Margins

Low EBIT and EBITDA margins indicate potential inefficiencies in operations, which could hinder profitability and competitiveness if not addressed.

DIC India Limited Business Overview & Revenue Model

Company Description

DIC India Limited engages in the manufacture and sale of printing inks in India. It operates in two segments, Printing Inks and Lamination Adhesives. The company offers news, offset, gravure, flexographic, and specialty inks; lamination adhesives; packaging solutions; and UV inks and coating products. It serves newspapers, magazines, conversion agents, and printing and packaging industries. The company was formerly known as Coates of India Limited and changed its name to DIC India Limited in August 2004. DIC India Limited was founded in 1937 and is based in Noida, India. DIC India Limited is a subsidiary of DIC Asia Pacific Pte Limited.

How the Company Makes Money

DIC India Limited generates revenue primarily through the sale of its core products, including printing inks, coatings, and specialty chemicals. The company has multiple revenue streams, with significant contributions from the packaging industry, where its inks and coatings are essential for labeling and packaging materials. Additionally, DICIND benefits from long-term contracts and partnerships with major players in the printing and packaging sectors, ensuring a steady demand for its products. The company's focus on innovation and sustainability also attracts customers looking for eco-friendly solutions, further enhancing its market position and profitability.

DIC India Limited Financial Statement Overview

Summary

DIC India Limited shows a strong recovery in financial performance in 2024. Revenue and profit margins have improved significantly, indicating effective cost management and a return to profitability. The balance sheet remains robust with minimal leverage and strong equity ratios, enhancing financial stability. While cash flow has improved, potential challenges in free cash flow generation relative to net income remain.

Income Statement

DIC India Limited demonstrates strong revenue recovery in 2024 with a 6.3% increase from 2023. The gross profit margin improved significantly to 25.0% in 2024 from 12.6% in 2023, indicating better cost management. Additionally, strong profitability is evident as the net profit margin turned positive at 2.2% in 2024 compared to a negative margin in 2023. However, EBIT and EBITDA margins remain low, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.01, showcasing minimal leverage. The equity ratio remains strong at 70.7%, reflecting robust financial stability. Return on equity improved to 4.7% in 2024, up from a negative value in 2023, indicating enhanced shareholder returns. However, a slight decline in total assets could be a concern for future growth.

Cash Flow

DIC India Limited's cash flow position improved in 2024 with positive free cash flow of 81 million INR, reversing the negative trend from the prior year. The operating cash flow to net income ratio of 0.84 suggests solid operational cash conversion. However, the free cash flow to net income ratio indicates limited free cash flow generation relative to net income, highlighting potential cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.92B	8.78B	8.26B	8.68B	7.42B	6.06B
Gross Profit	1.77B	2.20B	1.04B	1.74B	1.78B	1.67B
EBITDA	453.89M	461.95M	-63.47M	608.36M	322.44M	1.28B
Net Income	179.29M	195.39M	-226.76M	409.84M	123.89M	859.00M
Balance Sheet
Total Assets	0.00	5.87B	5.81B	6.49B	6.11B	5.29B
Cash, Cash Equivalents and Short-Term Investments	397.97M	391.82M	469.68M	670.74M	727.66M	920.71M
Total Debt	0.00	34.33M	196.84M	240.45M	54.49M	57.46M
Total Liabilities	-4.15B	1.72B	1.85B	2.27B	2.25B	1.50B
Stockholders Equity	4.15B	4.15B	3.96B	4.22B	3.86B	3.79B
Cash Flow
Free Cash Flow	0.00	81.00M	-280.62M	-325.34M	-306.10M	182.20M
Operating Cash Flow	0.00	163.83M	52.57M	369.69M	-71.15M	242.74M
Investing Cash Flow	0.00	-59.73M	-300.05M	-341.65M	563.07M	381.62M
Financing Cash Flow	0.00	-182.46M	46.37M	-84.96M	-94.90M	-443.04M

DIC India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 485.80
• 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:DICIND, the sentiment is Negative. The current price of 485.8 is above the 20-day moving average (MA) of 483.51, below the 50-day MA of 500.52, and below the 200-day MA of 585.54, indicating a bearish trend. The MACD of -7.78 indicates Positive momentum. The RSI at 37.11 is Neutral, neither overbought nor oversold. The STOCH value of 16.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DICIND.

DIC India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PREMIERPOL	70 Neutral	₹4.35B	15.06	―	0.37%	3.39%	6.48%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PLASTIBLEN	61 Neutral	₹4.12B	12.63	―	1.53%	-2.17%	-5.39%
DICIND	59 Neutral	₹4.30B	21.56	―	0.82%	1.34%	283.51%
ASAHISONG	58 Neutral	₹2.90B	17.98	―	0.56%	10.57%	59.22%
VINYLINDIA	58 Neutral	₹4.23B	21.57	―	2.90%	-1.72%	-19.99%
SUKHJITS	54 Neutral	₹5.53B	24.18	―	0.63%	-5.05%	-57.82%

DIC India Limited Corporate Events

DIC India Limited Reports Significant Reduction in GST Demand

DIC India Limited has informed the stock exchanges about a significant reduction in a tax demand from the GST department of Karnataka. Initially, the company faced a demand of INR 6.71 crore for the fiscal year 2021-22 due to alleged Input Tax Credit violations. However, after representations, the final order reduced this demand to INR 3.81 lakh. This reduction indicates a favorable outcome for DIC India Limited, minimizing financial impact and potential operational disruptions.

DIC India Limited Resolves GST Dispute with Significant Tax Reduction

DIC India Limited has announced a significant reduction in a tax demand originally issued by the GST department of West Bengal. The initial demand of INR 5,54,65,222 was reduced to INR 4,67,740 following representations made before the Joint Commissioner. This reduction in tax liability is unlikely to impact the company’s financial or operational activities significantly, indicating a positive resolution of the dispute for DIC India Limited.