DCMSHRIRAM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | DCMSHRIRAM | Market Cap | 19,142 Cr. | Current Price | 1,228 ₹ | High / Low | 1,502 ₹ |
| Stock P/E | 28.3 | Book Value | 464 ₹ | Dividend Yield | 0.73 % | ROCE | 10.8 % |
| ROE | 8.07 % | Face Value | 2.00 ₹ | DMA 50 | 1,139 ₹ | DMA 200 | 1,160 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | 0.24 % | PAT Qtr | 237 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 64.0 | MACD | 28.2 | Volume | 4,67,770 | Avg Vol 1Wk | 1,38,306 |
| Low price | 945 ₹ | High price | 1,502 ₹ | PEG Ratio | -1.50 | Debt to equity | 0.30 |
| 52w Index | 50.7 % | Qtr Profit Var | -4.77 % | EPS | 41.1 ₹ | Industry PE | 27.1 |
📊 DCM Shriram (DCMSHRIRAM) shows modest fundamentals with ROE (8.07%) and ROCE (10.8%), which are below ideal levels for strong long-term compounding. Debt-to-equity at 0.30 indicates manageable leverage, while EPS of ₹41.1 provides earnings visibility. Dividend yield of 0.73% adds some stability. Quarterly PAT improved sequentially (168 Cr → 237 Cr), but profit variation (-4.77%) highlights volatility. Valuation is slightly above industry average with P/E (28.3) vs industry P/E (27.1), while PEG ratio (-1.50) suggests weak growth-adjusted value. Technicals show bullish momentum (RSI 64.0, MACD 28.2), supported by strong volume.
🎯 Entry Zone: 1,100 ₹ – 1,150 ₹ (closer to support levels)
📌 Long-Term Holding: Suitable for medium-term horizon (2–3 years). Long-term compounding potential is limited unless ROE and ROCE improve significantly.
Positive
- Dividend yield of 0.73% provides steady income.
- Debt-to-equity ratio of 0.30 indicates manageable leverage.
- Quarterly PAT growth from ₹168 Cr. to ₹237 Cr.
- DII holdings increased (+0.24%), showing domestic institutional support.
- MACD and RSI indicate bullish momentum.
Limitation
- ROE (8.07%) and ROCE (10.8%) are modest compared to peers.
- PEG ratio (-1.50) suggests valuation concerns.
- Quarterly profit variation (-4.77%) indicates declining profitability.
- P/E (28.3) slightly above industry average (27.1).
Company Negative News
- Decline in FII holdings (-0.01%) shows reduced foreign investor confidence.
- Profitability metrics remain weak despite revenue growth.
Company Positive News
- Quarterly PAT improved sequentially (₹168 Cr → ₹237 Cr).
- Strong technical momentum with RSI and MACD indicators.
Industry
- Industry P/E (27.1) is slightly lower than DCM Shriram’s P/E (28.3), suggesting fair valuation.
- Agriculture, chemicals, and consumer products sector has long-term demand drivers, supported by rural growth and industrial expansion.
Conclusion
⚠️ DCM Shriram is a stable company with modest efficiency metrics and manageable debt. Ideal entry zone is ₹1,100–1,150. Investors already holding should aim for a medium-term horizon (2–3 years) and consider partial exits near ₹1,400–1,500. Long-term compounding potential is limited unless ROE and ROCE improve significantly.
This structured HTML report captures DCM Shriram’s stability and modest fundamentals while highlighting its valuation risks and limited efficiency metrics. If you’d like, I can extend this into a sector benchmarking overlay against peers in chemicals and agribusiness to show relative positioning. Would you like me to prepare that next?