DCM Shriram Ltd
DCM Shriram Ltd
DiversifiedKey Fundamentals
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BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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40 extracted metrics + investor summaries across FY14–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Strengths
1- Company has been maintaining a healthy dividend payout of 22.4%
Weaknesses
4- The company has delivered a poor sales growth of 10.3% over past five years.
- Tax rate seems low
- Company has a low return on equity of 8.95% over last 3 years.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
DCM Shriram Ltd is a diversified conglomerate trading at a PE of 10.8x with a market cap of Rs 15,600 Cr. The company has shown a sharp TTM profit recovery of 122% but carries a muted 3-year profit CAGR of -1% and a below-average 3-year ROE of 9%, reflecting cyclicality in its core chemicals and sugar businesses.
- TTM profit growth of 122% signals a strong earnings recovery from a cyclical trough
- PE of 10.8x is well below the broader market average, suggesting undemanding valuations for a diversified business
- 10-year compounded profit growth of 11% demonstrates long-term earnings compounding capability
- 10-year stock CAGR of 16% shows meaningful long-term wealth creation for shareholders
- TTM sales growth of 11% indicates improving top-line momentum versus 5-year CAGR of 10%
- Consistent dividend payout of 22.4% with a current yield of 1.13% provides a floor of shareholder returns
- Price-to-book of 2.01x is reasonable for a company with diversified asset-heavy operations across chemicals, sugar, and fertilizers
- 5-year ROE of 12% and 10-year ROE of 15% show the business can generate attractive returns across full cycles
- Stock has declined 25% over the past 1 year, indicating sustained negative sentiment or earnings downgrades
- 3-year compounded profit growth of -1% highlights earnings volatility and cyclical vulnerability
- 3-year ROE of only 9% is below the cost of equity for most investors, indicating subpar capital efficiency in recent years
- 5-year sales CAGR of only 10.3% is considered poor for a mid-cap diversified company
- Concern around possible capitalization of interest costs, which could overstate reported profitability and asset values
- Apparently low tax rate raises questions about sustainability of reported earnings and potential future tax normalization
- 3-year stock CAGR of just 3% and 5-year CAGR of 1% show prolonged period of shareholder value stagnation
- Last year ROE of 12% remains below the 10-year average of 15%, suggesting the business has not fully recovered to historical profitability norms
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- PAT surges 42% in FY26 Jul 21
Consolidated net revenue rose to ₹13,538 crore from ₹12,077 crore in FY26. Net profit jumped 42% to ₹856 crore, led by chemicals segment with 31% revenue growth.
- Q1FY27 PAT up 509% YoY Jul 28
Net profit surged to ₹693 crore in Q1FY27 driven by a ₹474 crore tax adjustment. Normalized PAT was ₹147 crore, revenue rose 9% to ₹3,564 crore, and EBITDA margin expanded to 8.88%.
- 26% stake in Serentica Renewables Jul 17
DCM Shriram signed a definitive agreement to acquire 26% in Serentica Renewables India 38 Pvt. Ltd. for ₹104.4 crore, securing 58 MW of renewable power for its Bharuch plant.
- ESG score 63, zero fatalities Jul 21
BRSR filing for FY26 showed a 6% reduction in energy intensity, zero workplace fatalities, and an ESG score of 63.
- Final dividend of ₹4/share Jul 17
Board recommended a final dividend of ₹4.00 per share for FY26 with record date of July 31, 2026.
- Two independent directors retire Aug 8
Mr. Pravesh Sharma and Justice (Retd.) Vikramajit Sen completed their second term as Independent Directors, ceasing roles effective August 9, 2026.
- Q1FY27 earnings call hosted Jul 30
DCM Shriram hosted its analyst conference call on July 30 at 4:00 PM IST to discuss Q1 FY27 unaudited standalone and consolidated results.
TL;DR: DCM Shriram delivered a strong FY26 with 42% PAT growth and continued momentum into Q1FY27, though headline profit was inflated by a ₹474 crore tax gain. The chemicals segment is driving topline growth and the Serentica renewables acquisition signals a push toward sustainable energy sourcing. No material headwinds are visible in recent news flow, and the trend appears constructive heading into FY27.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 2,780 | 2,708 | 3,035 | 2,399 | 2,876 | 2,957 | 3,367 | 2,877 | 3,262 | 3,272 | 3,811 | 3,193 | 3,564 |
| Expenses | 2,614 | 2,594 | 2,590 | 2,134 | 2,629 | 2,776 | 2,871 | 2,472 | 2,958 | 2,963 | 3,280 | 2,840 | 3,228 |
| Operating Profit | 166 | 114 | 445 | 265 | 248 | 181 | 496 | 405 | 304 | 309 | 532 | 353 | 337 |
| OPM % | 6% | 4.2% | 15% | 11% | 9% | 6% | 15% | 14% | 9% | 9% | 14% | 11% | 9% |
| Other Income | 17 | 22 | 35 | 24 | 26 | 54 | 41 | 21 | 22 | 99 | -26 | 78 | 107 |
| Interest | 25 | 15 | 15 | 32 | 29 | 38 | 43 | 43 | 44 | 43 | 49 | 40 | 41 |
| Depreciation | 72 | 74 | 77 | 80 | 86 | 101 | 109 | 114 | 112 | 119 | 134 | 138 | 128 |
| PBT | 86 | 47 | 389 | 177 | 158 | 96 | 386 | 270 | 170 | 246 | 322 | 254 | 274 |
| Tax % | 34% | 32% | 38% | 33% | 37% | 34% | 32% | 34% | 33% | 35% | 34% | -46% | -152% |
| Net Profit | 57 | 32 | 240 | 118 | 100 | 63 | 262 | 179 | 114 | 159 | 213 | 371 | 693 |
| EPS in Rs | 3.63 | 2.07 | 15.42 | 7.55 | 6.43 | 4.03 | 16.81 | 11.47 | 7.27 | 10.13 | 13.6 | 23.72 | 44.42 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 5,639 | 5,780 | 5,788 | 6,900 | 7,771 | 7,767 | 8,308 | 9,627 | 11,547 | 10,922 | 12,077 | 13,538 | 13,840 |
| Expenses | 5,240 | 5,276 | 5,017 | 5,866 | 6,402 | 6,575 | 7,156 | 7,831 | 9,941 | 9,932 | 10,747 | 12,041 | 12,310 |
| Operating Profit | 399 | 505 | 771 | 1,035 | 1,369 | 1,192 | 1,152 | 1,796 | 1,606 | 991 | 1,330 | 1,497 | 1,530 |
| OPM % | 7% | 9% | 13% | 15% | 18% | 15% | 14% | 19% | 14% | 9% | 11% | 11% | 11% |
| Other Income | 52 | 41 | 47 | 56 | 88 | 88 | 92 | 92 | 120 | 99 | 142 | 173 | 258 |
| Interest | 112 | 85 | 71 | 83 | 119 | 164 | 122 | 85 | 53 | 88 | 153 | 176 | 173 |
| Depreciation | 110 | 98 | 114 | 141 | 157 | 219 | 233 | 238 | 260 | 303 | 410 | 502 | 519 |
| PBT | 228 | 362 | 633 | 867 | 1,180 | 897 | 889 | 1,565 | 1,413 | 699 | 909 | 992 | 1,096 |
| Tax % | 8% | 17% | 13% | 23% | 24% | 20% | 24% | 32% | 36% | 36% | 34% | 14% | — |
| Net Profit | 211 | 301 | 552 | 669 | 904 | 722 | 674 | 1,067 | 911 | 447 | 604 | 856 | 1,436 |
| EPS in Rs | 12.98 | 18.58 | 33.97 | 41.22 | 56.99 | 45.96 | 43.17 | 68.45 | 58.41 | 28.67 | 38.75 | 54.73 | 91.87 |
| Div. Payout % | 17% | 17% | 17% | 20% | 17% | 18% | 22% | 22% | 24% | 23% | 23% | 21% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 33 | 33 | 33 | 33 | 31 | 31 | 31 | 31 | 31 | 31 | 31 | 31 |
| Reserves | 1,826 | 2,058 | 2,495 | 3,007 | 3,494 | 4,018 | 4,617 | 5,470 | 6,162 | 6,491 | 6,973 | 7,681 |
| Borrowings | 760 | 1,064 | 1,074 | 756 | 1,610 | 2,150 | 1,521 | 1,577 | 1,707 | 2,152 | 2,529 | 2,923 |
| Other Liabilities | 1,798 | 1,852 | 1,972 | 1,857 | 2,001 | 1,935 | 1,621 | 2,290 | 2,819 | 2,874 | 3,198 | 3,479 |
| Total Liabilities | 4,417 | 5,007 | 5,574 | 5,652 | 7,136 | 8,135 | 7,790 | 9,369 | 10,720 | 11,547 | 12,731 | 14,115 |
| Fixed Assets | 1,443 | 1,428 | 2,022 | 2,211 | 2,690 | 3,499 | 3,360 | 3,408 | 4,105 | 4,222 | 6,517 | 7,518 |
| CWIP | 62 | 357 | 65 | 117 | 332 | 59 | 109 | 494 | 1,630 | 2,615 | 834 | 571 |
| Investments | 6 | 35 | 31 | 30 | 31 | 29 | 30 | 3 | 12 | 54 | 56 | 136 |
| Other Assets | 2,906 | 3,186 | 3,457 | 3,294 | 4,084 | 4,548 | 4,291 | 5,463 | 4,973 | 4,656 | 5,324 | 5,889 |
| Total Assets | 4,417 | 5,007 | 5,574 | 5,652 | 7,136 | 8,135 | 7,790 | 9,369 | 10,720 | 11,547 | 12,731 | 14,115 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 167 | 100 | 772 | 827 | 775 | 496 | 1,887 | 1,224 | 1,296 | 794 | 1,127 | 1,234 |
| Investing | 228 | -326 | -411 | -321 | -803 | -518 | -642 | -888 | -1,543 | -1,070 | -850 | -1,241 |
| Financing | -594 | 166 | -185 | -571 | 277 | 183 | -918 | -275 | -235 | 169 | -1 | -307 |
| Net Cash Flow | -200 | -59 | 176 | -65 | 248 | 161 | 327 | 62 | -482 | -107 | 277 | -314 |
| Free Cash Flow | 115 | -249 | 331 | 440 | -73 | -102 | 1,642 | 478 | -493 | -514 | 280 | 354 |
| CFO/OP | 56 | 36 | 119 | 102 | 76 | 55 | 178 | 84 | 101 | 100 | 92 | 88 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 69 | 81 | 63 | 48 | 49 | 51 | 23 | 34 | 27 | 22 | 28 | 29 |
| Inventory Days | 120 | 141 | 194 | 163 | 190 | 208 | 146 | 190 | 153 | 168 | 162 | 162 |
| Days Payable | 119 | 123 | 138 | 110 | 113 | 89 | 57 | 79 | 65 | 65 | 69 | 64 |
| Cash Conversion Cycle | 71 | 100 | 120 | 100 | 126 | 170 | 111 | 145 | 115 | 124 | 121 | 128 |
| Working Capital Days | 43 | 31 | 35 | 57 | 48 | 52 | 44 | 45 | 37 | 34 | 26 | 25 |
| ROCE % | 12% | 15% | 21% | 25% | 29% | 19% | 16% | 24% | 19% | 9% | 11% | 12% |
Documents
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Company Information
DCM Shriram is engaged in the business of manufacturing facilities of Fertiliser, Chloro Vinyl & Cement in Kota (Rajasthan) and of Chlor- Alkali in Bharuch (Gujrat).(Source : Company Web-site )