DCM Shriram Ltd logo

DCM Shriram Ltd

DCMSHRIRAM NSE

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 )

AI Verdict: HOLD Confidence: 5%

DCM Shriram trades at a PE of 19x with a market cap of Rs 16,343 Cr, showing strong TTM profit growth of 49% but weighed down by a low 3-year ROE of 9% and poor 5-year sales CAGR of 10%. The diversified business model offers resilience but limited re-rating catalysts in the near term.

Key Fundamentals

SmallcapDiversified GroupDiversified
Market Cap
₹16,285 Cr
Volatility
Moderate
P/E Ratio
19.11
EBITDA
₹1,396 Cr
Return on Equity
6.86%
Debt to Equity
0.35
Book Value
₹494.53
EPS
₹31.47
52W High
₹1,502.3
52W Low
₹945.1

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 9.17% over last 3 years.
  • Company might be capitalizing the interest cost

Growth Rate

Revenue Growth
10.16% ↗
Net Income Growth
32.18% ↘
Cash Flow Change
42.08% ↗
ROE
25.80% ↘
ROCE
25.17% ↗
EBITDA Margin (Avg.)
-15.19% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

DCM Shriram trades at a PE of 19x with a market cap of Rs 16,343 Cr, showing strong TTM profit growth of 49% but weighed down by a low 3-year ROE of 9% and poor 5-year sales CAGR of 10%. The diversified business model offers resilience but limited re-rating catalysts in the near term.

Bull Case 7
  • TTM compounded profit growth of 49% indicates a sharp earnings recovery, suggesting operating leverage is kicking in
  • 10-year stock CAGR of 18% demonstrates consistent long-term wealth creation for patient investors
  • PE of 19x is reasonable for a diversified conglomerate with chemical and sugar exposure, offering valuation comfort
  • 10-year compounded sales growth of 9% shows steady top-line expansion across business cycles
  • Healthy dividend payout of 22.4% with current yield of 0.69% provides income support during sideways markets
  • 5-year ROE of 12% and 10-year ROE of 15% show the company can generate adequate returns over longer periods
  • Market cap of Rs 16,343 Cr places it in the mid-to-large cap segment, offering reasonable liquidity and institutional interest
Bear Case 8
  • 3-year ROE of only 9% is significantly below cost of equity, indicating subpar capital allocation in recent years
  • 5-year sales CAGR of only 10% is poor for a diversified company operating in high-growth segments like chemicals
  • 3-year compounded profit growth of -1% shows earnings stagnation over a meaningful period despite revenue growth
  • 1-year stock return of -10% signals market disenchantment and potential de-rating risk
  • Potential interest cost capitalization raises concerns about true profitability and asset quality of expansion projects
  • Low tax rate raises questions about earnings sustainability once tax benefits or exemptions expire
  • Zero analyst coverage as per available data suggests limited institutional sponsorship and potential liquidity risk during selloffs
  • Price-to-book of 2.1x is not cheap enough to offer a margin of safety given the low 3-year ROE of 9%

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 1
  • Tax appeal Rs 35.83 crore Jun 19

    Principal Commissioner of Income Tax filed an appeal involving Rs 35.83 crore against DCM Shriram for AY 2016-17, related to transfer pricing adjustments.

Positives 1
  • Rs 18 crore renewable investment Jun 19

    Board approved equity investment of up to Rs 18 crores to secure 10 MW of renewable power for its Bharuch Plant, supporting ESG and cost efficiency.

TL;DR: DCM Shriram faces a tax dispute of Rs 35.83 crore from a transfer pricing appeal for AY 2016-17, which poses a modest financial risk. On the positive side, the company is investing Rs 18 crore in 10 MW renewable energy capacity for its Bharuch operations, signaling commitment to sustainability and long-term cost optimization. The tax matter is a legacy issue unlikely to derail operations, while the green energy push is incrementally positive. Overall trend is stable with no major directional shift.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
2,720
2,780
2,708
3,035
2,399
2,876
2,957
3,367
2,877
3,262
3,272
3,811
3,193
Expenses
2,374
2,614
2,594
2,590
2,134
2,629
2,776
2,871
2,472
2,958
2,963
3,280
2,840
Operating Profit
346
166
114
445
265
248
181
496
405
304
309
532
353
OPM %
13%
6%
4%
15%
11%
9%
6%
15%
14%
9%
9%
14%
11%
Other Income
26
17
22
35
24
26
54
41
21
22
99
-26
78
Interest
12
25
15
15
32
29
38
43
43
44
43
49
40
Depreciation
71
72
74
77
80
86
101
109
114
112
119
134
138
PBT
289
86
47
389
177
158
96
386
270
170
246
322
254
Tax %
35%
34%
32%
38%
33%
37%
34%
32%
34%
33%
35%
34%
-46%
Net Profit
187
57
32
240
118
100
63
262
179
114
159
213
371
EPS in Rs
11.97
3.63
2.07
15.42
7.55
6.43
4.03
16.81
11.47
7.27
10.13
13.6
23.72
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
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
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
Operating Profit
399
505
771
1,035
1,369
1,192
1,152
1,796
1,606
991
1,330
1,497
OPM %
7%
9%
13%
15%
18%
15%
14%
19%
14%
9%
11%
11%
Other Income
52
41
47
56
88
88
92
92
120
99
142
173
Interest
112
85
71
83
119
164
122
85
53
88
153
176
Depreciation
110
98
114
141
157
219
233
238
260
303
410
502
PBT
228
362
633
867
1,180
897
889
1,565
1,413
699
909
992
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
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
Div. Payout %
17%
17%
17%
20%
17%
18%
22%
22%
24%
23%
23%
21%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
3,502
Total Liabilities
4,417
5,007
5,574
5,652
7,136
8,135
7,790
9,369
10,720
11,547
12,731
14,137
Fixed Assets
1,443
1,428
2,022
2,211
2,690
3,499
3,360
3,408
4,105
4,222
6,517
7,557
CWIP
62
357
65
117
332
59
109
494
1,630
2,615
834
532
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
5,912
Total Assets
4,417
5,007
5,574
5,652
7,136
8,135
7,790
9,369
10,720
11,547
12,731
14,137
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
167
100
772
827
775
496
1,887
1,224
1,296
794
1,128
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
281
354
CFO/OP
56
36
119
102
76
55
178
84
101
100
92
88
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
27
ROCE %
12%
15%
21%
25%
29%
19%
16%
24%
19%
9%
11%
12%

Shareholding Pattern

As of Mar 2026
Promoters 66.52%
Others 12.85%
DIIs 8.56%
Public 8.09%
FIIs 3.97%
Total 99.99%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
66.53%
66.53%
66.53%
66.53%
66.52%
66.52%
66.52%
66.52%
66.52%
66.52%
66.52%
66.52%
66.52%
66.52%
66.52%
66.52%
66.52%
66.52%
66.52%
66.52%
66.52%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
2.86%
0.00%
3.75%
3.74%
3.78%
4.00%
4.10%
4.13%
3.97%
3.97%
3.97%
DIIs
9.06%
8.77%
8.19%
8.20%
8.12%
8.06%
7.88%
8.86%
8.85%
7.89%
8.53%
7.86%
8.10%
8.07%
7.67%
7.65%
7.76%
8.05%
8.25%
8.31%
8.56%
Government
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.00%
0.00%
Public
8.51%
8.58%
8.65%
8.56%
8.66%
8.80%
9.17%
9.12%
9.20%
9.40%
9.23%
8.86%
8.63%
8.66%
9.06%
8.90%
8.69%
8.46%
8.47%
8.35%
8.09%
Others
15.88%
16.10%
16.60%
16.69%
16.68%
16.60%
16.42%
15.48%
15.41%
16.17%
12.83%
16.74%
12.97%
12.99%
12.94%
12.92%
12.91%
12.82%
12.77%
12.84%
12.85%
No. of Shareholders
40,818
45,594
58,036
54,120
64,118
64,499
61,745
58,415
57,796
58,870
55,811
55,157
57,171
60,148
58,120
59,837
61,682
59,672
60,864
58,414
55,220

Documents

Frequently Asked Questions about DCM Shriram Ltd

What does DCM Shriram Ltd do?
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 )
Where is DCM Shriram Ltd (DCMSHRIRAM) listed?
DCM Shriram Ltd is listed on the Indian stock exchanges. It is listed on NSE: DCMSHRIRAM and BSE: 523367. You can view its live share price, financials, and ratios on Tapetide.
Which sector does DCM Shriram Ltd belong to?
DCM Shriram Ltd operates in the Diversified sector. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of DCM Shriram Ltd?
DCM Shriram Ltd has a market capitalisation of approximately ₹16285.05 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of DCM Shriram Ltd?
The Price-to-Earnings (PE) ratio of DCM Shriram Ltd is 19.11. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of DCM Shriram Ltd?
Over the past 52 weeks, DCM Shriram Ltd has traded between a low of ₹945.1 and a high of ₹1,502.3. This range helps investors understand the stock's price volatility and recent trading levels.
Does DCM Shriram Ltd pay dividends?
Yes, DCM Shriram Ltd has a dividend yield of 0.69%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of DCM Shriram Ltd?
DCM Shriram Ltd has a Return on Equity (ROE) of 6.86%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research DCM Shriram Ltd on Tapetide?
On Tapetide, you can view DCM Shriram Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

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 )

Website dcmshriram.com
CEO Mr. Ajay Shridhar Shriram
Employees 6,197
Listed 1995-04-12
Face Value ₹ 2
Issued Size 15,59,42,296

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