⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DCMSHRIRAM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | DCMSHRIRAM | Market Cap | 17,060 Cr. | Current Price | 1,093 ₹ | High / Low | 1,502 ₹ |
| Stock P/E | 25.2 | Book Value | 464 ₹ | Dividend Yield | 0.82 % | ROCE | 10.8 % |
| ROE | 8.07 % | Face Value | 2.00 ₹ | DMA 50 | 1,099 ₹ | DMA 200 | 1,163 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.07 % | PAT Qtr | 237 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 57.3 | MACD | -20.6 | Volume | 49,905 | Avg Vol 1Wk | 81,757 |
| Low price | 945 ₹ | High price | 1,502 ₹ | PEG Ratio | -1.34 | Debt to equity | 0.30 |
| 52w Index | 26.6 % | Qtr Profit Var | -4.77 % | EPS | 41.1 ₹ | Industry PE | 24.4 |
📊 Core Financials
- Revenue Growth: PAT improved (₹237 Cr vs ₹168 Cr), but quarterly profit variation shows -4.77%
- Profit Margins: EPS ₹41.1, moderate profitability
- Debt Ratio: Moderate leverage (Debt-to-Equity 0.30)
- Cash Flows: Stable, supported by diversified operations
- Return Metrics: ROCE 10.8%, ROE 8.07% — modest efficiency
💹 Valuation Indicators
- P/E Ratio: 25.2 (slightly above industry PE of 24.4, fairly valued)
- P/B Ratio: ~2.35 (reasonable valuation)
- PEG Ratio: -1.34 (negative, weak growth outlook)
- Intrinsic Value: Current price ₹1,093 is near support (₹945), offering cautious entry
🏢 Business Model & Competitive Advantage
- Diversified conglomerate with presence in chemicals, fertilizers, and textiles
- Strong domestic market presence
- Moderate debt but manageable balance sheet
- Dividend yield of 0.82% adds shareholder value
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹950–₹1,100 range (near support levels)
- Long-Term Holding: Suitable for conservative investors seeking diversified exposure
- Risk: Weak ROE/ROCE and negative PEG ratio may limit upside
✅ Positive
- Diversified business model reduces sector-specific risks
- Dividend yield provides steady income
- Valuation is fair compared to industry peers
⚠️ Limitation
- ROE and ROCE are modest compared to industry leaders
- Negative PEG ratio indicates poor growth prospects
- Stock trading below DMA 200, showing weak momentum
📰 Company Negative News
- Quarterly profit variation shows -4.77%, indicating earnings pressure
🌟 Company Positive News
- PAT improved from ₹168 Cr to ₹237 Cr
- FII (+0.01%) and DII (+0.07%) holdings increased slightly
🏦 Industry
- Agrochemicals and diversified industrial sector with steady demand
- Industry PE at 24.4, DCMSHRIRAM trades slightly above this, showing fair valuation
- Sector supported by agriculture and industrial growth in India
🔎 Conclusion
- DCMSHRIRAM offers stability with diversified operations and fair valuation
- Efficiency metrics are modest, limiting strong upside potential
- Entry near ₹950–₹1,100 is favorable for long-term conservative investors
- Best suited for portfolios seeking steady exposure to agrochemicals and industrials with moderate risk tolerance