DCM Shriram
DCM Shriram
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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 is a diversified company covering chloro-vinyl, sugar, fertilisers and agri-inputs, with a market cap of about Rs 15,172 crore. It trades at a P/E of 10.6 and a P/B of 1.98, with a dividend yield of 1.15%. TTM profit growth is 122%, but it comes off a weak base: 3-year profit CAGR is -1% and 3-year ROE is 9%. The stock has returned -16% over 1 year and -1% CAGR over 5 years, against a 16% CAGR over 10 years.
- TTM profit growth of 122% points to a sharp earnings recovery after a weak cyclical phase.
- A P/E of 10.6 is low in absolute terms, so the market is not pricing in much growth. That is notable next to 122% TTM profit growth.
- TTM sales growth of 11% is faster than the 3-year sales CAGR of 5%, which suggests revenue is picking up again.
- Over the long run the company has compounded sales at 9% and profits at 11% over 10 years, with a 10-year average ROE of 15%.
- Last year's ROE of 12% is above the 3-year average of 9%, suggesting returns have started to improve.
- The company has kept a dividend payout of about 22.4%, giving a 1.15% dividend yield that rewards shareholders during downturns.
- The stock has returned a 16% CAGR over 10 years, which shows it can create value across full business cycles.
- A P/B of 1.98 is moderate for a business whose ROE has averaged 12-15% over 5-10 years. If returns move back toward historical levels, the rerating potential is limited but real.
- 3-year average ROE is only 8.95%, likely below the cost of equity, which suggests weak capital efficiency in recent years.
- 3-year profit CAGR is -1%, so the 122% TTM jump may be a rebound from a low base rather than lasting growth.
- ROE has fallen from 15% (10-year average) to 12% (5-year) and 9% (3-year), a steady decline in returns.
- 3-year sales CAGR is only 5% and 5-year sales growth is 10.3%, which is modest for the business mix.
- The stock has returned -16% over 1 year, -3% CAGR over 3 years and -1% CAGR over 5 years, so shareholders have gained little in recent years.
- The company may be capitalizing interest cost, which can flatter reported profits. Combined with an apparently low tax rate, reported earnings behind the 10.6 P/E may be of lower quality.
- Earnings depend on cyclical segments such as caustic soda/PVC and regulated sugar and fertiliser pricing. This is reflected in the gap between 5-year profit CAGR of 5% and 3-year profit CAGR of -1%.
- A 1.15% dividend yield and 22.4% payout give limited income support if earnings momentum fades.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Kota aluminium extrusion plant commissioned Sep 1
DCM Shriram commissioned its main aluminium extrusion plant at Kota on September 1, 2026. Surface finish plants are still being installed and commissioned, so the full value-added line-up is not yet complete.
TL;DR: The only news in this batch is positive: DCM Shriram has commissioned its main aluminium extrusion plant at Kota on schedule, which moves the company into value-added aluminium products and widens its diversified portfolio. The article gives no capacity, capex or revenue figures, so the earnings impact can't be measured yet. The surface finish plants are still being set up, which leaves some risk around ramp-up and completion. With one data point, the trend looks mildly better. Investors should watch how fast the finishing lines are completed and the plant reaches full use over the next few quarters.
Quarterly Results
| Particulars | 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
| Particulars | 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
| Particulars | 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
| Particulars | 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
| Particulars | 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% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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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 )
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