Dredging Corporation of India Limited (DREDGECORP) AI Stock Analysis

• Market Cap: ₹31.58B
• Dividend Yield: N/A
• Average Volume (3M): 5.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 38.09%
• EPS Growth: 67.21%
• Country: IN
• Employees: 248
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -12.21
• Shares Outstanding: 28,000,000
• 10 Day Avg. Volume: 3,372
• 30 Day Avg. Volume: 5,322
• PEG Ratio: 0.32
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 1.42
• P/FCF Ratio: -4.42
• 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: ₹1,220.00 ▲(26.58% Upside)

The score is held back primarily by weak financial performance (net losses, negative free cash flow, and declining equity) and an unfavorable valuation signal from a negative P/E. These are partially offset by strong technical momentum, with price trading well above key moving averages and supportive MACD/RSI readings.

Positive Factors

Essential, recurring demand

Core services (maintenance and capital dredging) are mission-critical for ports and waterways. Much work is recurring and government-driven, creating a durable, predictable addressable market and multi-season contract visibility that supports stable revenue over months.

Manageable leverage

Moderate debt levels provide financial flexibility to bid for and execute multi-year dredging projects without excessive interest burden. This balance reduces near-term default risk and preserves capacity to finance fleet maintenance or selective growth via debt if cash generation improves.

Recent strong revenue growth

Material year-over-year revenue expansion indicates successful contract wins or higher utilization of fleet. Sustained top-line growth supports long-term cash flow potential and scale economics, improving prospects for margin recovery if cost control continues and utilization remains elevated.

Negative Factors

Negative profitability (EBIT loss)

Persistent negative EBIT erodes retained earnings and limits capacity to self-fund fleet upkeep or bids. Continued operating losses weaken pricing power and raise the chance of margin compression on future contracts, requiring structural cost fixes to restore sustainable profitability.

Negative free cash flow

Ongoing negative free cash flow means operating cash generation doesn't cover capex, pressuring liquidity. Over time this can force external financing, delay essential fleet renewal, or constrain bidding capacity, increasing execution and counterparty risk on large projects.

Declining equity and negative ROE

Falling equity and negative ROE signal capital erosion from losses, weakening the balance sheet buffer against project overruns or claims. This reduces financial flexibility, may raise lender scrutiny, and increases the likelihood of dilution or higher-cost capital if external funding is needed.

Dredging Corporation of India Limited Business Overview & Revenue Model

Company Description

Dredging Corporation of India Limited provides dredging services to various ports, Indian navy, fishing harbors, and other maritime organizations in India. The company offers capital dredging, maintenance dredging, beach nourishment, land reclamation, shallow water dredging, project management consultancy, and marine construction services. It operates through a fleet of 10 trailer suction hopper dredgers, 2 cutter suction dredgers, one backhoe dredger, and one inland cutter suction dredger, as well as other ancillary crafts. Dredging Corporation of India Limited was incorporated in 1976 and is headquartered in Visakhapatnam, India.

How the Company Makes Money

DREDGECORP generates revenue primarily through contracts for dredging services provided to various governmental and private entities involved in port development and maintenance. The company secures its projects through competitive bidding processes, where it offers its specialized dredging capabilities at competitive rates. Key revenue streams include capital dredging projects, maintenance dredging contracts, and ancillary services like hydrographic surveys and environmental assessments. Additionally, DREDGECORP may benefit from partnerships with other public and private sector organizations, enabling it to expand its service offerings and geographical reach, which contributes positively to its earnings.

Dredging Corporation of India Limited Financial Statement Overview

Summary

Income statement shows weak profitability with negative net margins driven by negative EBIT, despite historically solid gross margins. Balance sheet leverage appears manageable, but declining equity and negative ROE add risk. Cash flow is strained by negative free cash flow as operating cash flow hasn’t covered high capex, raising liquidity concerns.

Income Statement

The company has shown fluctuating revenue growth with a drop in the latest year. Despite having relatively high gross profit margins historically, the net profit margins have been negative in recent years due to negative EBIT. This indicates challenges in managing operational costs efficiently.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, suggesting manageable leverage. However, equity levels have been declining, and the return on equity has been negative recently due to net losses. This could pose risks to financial stability if losses continue.

Cash Flow

The company has struggled with negative free cash flow in recent periods, primarily due to high capital expenditures. While operating cash flow remains positive, it has not been sufficient to cover capital investments, indicating potential liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.34B	11.42B	9.43B	11.58B	8.01B	7.53B
Gross Profit	8.65B	7.94B	7.27B	480.57M	5.97B	5.40B
EBITDA	1.98B	1.64B	2.04B	-252.22M	1.17B	-332.84M
Net Income	-193.78M	-274.57M	356.84M	-1.96B	35.70M	-1.72B
Balance Sheet
Total Assets	0.00	26.47B	24.03B	23.26B	23.07B	22.64B
Cash, Cash Equivalents and Short-Term Investments	481.37M	2.36B	835.79M	1.76B	1.26B	773.96M
Total Debt	0.00	9.23B	5.58B	3.81B	3.70B	4.36B
Total Liabilities	-12.21B	14.26B	11.39B	10.97B	9.03B	8.69B
Stockholders Equity	12.21B	12.21B	12.64B	12.29B	14.23B	13.95B
Cash Flow
Free Cash Flow	0.00	-3.67B	-1.00B	-304.84M	940.40M	1.73B
Operating Cash Flow	0.00	1.12B	1.91B	1.48B	2.05B	1.76B
Investing Cash Flow	0.00	-4.77B	-2.90B	-1.73B	-886.10M	-5.17M
Financing Cash Flow	0.00	3.63B	1.18B	-375.52M	-1.59B	-1.66B

Dredging Corporation of India Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 963.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DREDGECORP, the sentiment is Positive. The current price of 963.85 is below the 20-day moving average (MA) of 1023.57, below the 50-day MA of 974.83, and above the 200-day MA of 755.39, indicating a bullish trend. The MACD of 28.39 indicates Negative momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 67.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:DREDGECORP.

Dredging Corporation of India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAZDOCK	68 Neutral	₹1.04T	44.47	―	0.47%	12.22%	-9.22%
GRSE	67 Neutral	₹316.82B	45.98	―	0.80%	43.86%	60.18%
IRCON	65 Neutral	₹154.15B	25.66	―	1.56%	-13.85%	-34.81%
COCHINSHIP	65 Neutral	₹436.67B	60.05	―	0.59%	19.62%	-12.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SCHNEIDER	60 Neutral	₹165.73B	64.42	―	―	12.77%	31.32%
DREDGECORP	59 Neutral	₹31.58B	-151.07	―	―	38.09%	67.21%

Dredging Corporation of India Limited Corporate Events

Dredging Corporation of India Seeks Shareholder Nod for Appointment of Promoter Director via Postal Ballot

Dredging Corporation of India Limited has notified stock exchanges that its Board has appointed Shri Gaurav Dayal, IAS, as an Additional Director in the capacity of promoter, non-executive and non-independent director with effect from 7 November 2025. As the next annual general meeting is not scheduled in the near term, the company will seek shareholders’ approval for his regular appointment as director via a postal ballot process, in line with regulatory disclosure requirements, signaling ongoing adjustments in its board composition under promoter representation.