⚠ 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: 3.7
| Stock Code | DCMSHRIRAM | Market Cap | 17,971 Cr. | Current Price | 1,153 ₹ | High / Low | 1,502 ₹ |
| Stock P/E | 26.6 | Book Value | 464 ₹ | Dividend Yield | 0.78 % | ROCE | 10.8 % |
| ROE | 8.07 % | Face Value | 2.00 ₹ | DMA 50 | 1,195 ₹ | DMA 200 | 1,196 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.07 % | PAT Qtr | 237 Cr. | PAT Prev Qtr | 168 Cr. |
| RSI | 44.5 | MACD | -19.1 | Volume | 15,566 | Avg Vol 1Wk | 42,484 |
| Low price | 903 ₹ | High price | 1,502 ₹ | PEG Ratio | -1.41 | Debt to equity | 0.30 |
| 52w Index | 41.8 % | Qtr Profit Var | -4.77 % | EPS | 41.1 ₹ | Industry PE | 22.8 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT rose from 168 Cr. to 237 Cr., but YoY profit variation shows -4.77%, indicating inconsistency.
- Profit Margins: ROE at 8.07% and ROCE at 10.8% are modest, reflecting average efficiency.
- Debt Ratios: Debt-to-equity at 0.30 shows moderate leverage, manageable but not negligible.
- Cash Flows: Dividend yield at 0.78% provides limited shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 26.6 vs Industry PE of 22.8, suggesting slight premium valuation.
- P/B Ratio: Current Price 1,153 ₹ / Book Value 464 ₹ ≈ 2.48, reasonable valuation.
- PEG Ratio: -1.41, reflecting weak or negative growth expectations.
- Intrinsic Value: Estimated fair value around 1,050–1,100 ₹, making current price slightly above fair zone.
🏢 Business Model & Competitive Advantage
- DCM Shriram operates in diversified sectors including chemicals, fertilizers, sugar, and agribusiness.
- Competitive advantage lies in diversified portfolio and strong presence in rural/agri markets.
- Exposure to cyclical industries (sugar, fertilizers) adds volatility to earnings.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 1,050–1,100 ₹, closer to intrinsic value and near support levels.
- Long-Term Holding: Suitable for long-term investors seeking diversified exposure, but modest returns and cyclical risks require cautious entry.
✅ Positive
- Diversified business model across chemicals, fertilizers, and agribusiness.
- Moderate debt-to-equity ratio (0.30), manageable leverage.
- Quarterly PAT improvement from previous quarter (168 Cr. → 237 Cr.).
⚠️ Limitation
- ROE (8.07%) and ROCE (10.8%) are modest compared to peers.
- PEG ratio negative, reflecting poor growth visibility.
- Stock trading below DMA 50 and DMA 200, showing weak momentum.
📉 Company Negative News
- Profit variation (-4.77%) indicates earnings inconsistency.
- Technical indicators (RSI 44.5, MACD -19.1) show bearish sentiment.
📈 Company Positive News
- FII (+0.01%) and DII (+0.07%) holdings increased slightly, showing marginal institutional support.
- Quarterly PAT growth sequentially reinforces operational strength.
🏭 Industry
- Industry PE at 22.8, lower than DCM Shriram’s 26.6, suggesting slight overvaluation.
- Agribusiness and chemicals sector growth supported by government initiatives and rising rural demand.
🔎 Conclusion
- DCM Shriram is a diversified player with moderate leverage and stable operations.
- Valuation is slightly stretched compared to industry peers, and modest return ratios limit attractiveness.
- Best suited for long-term investors with cautious entry around 1,050–1,100 ₹; accumulation strategy recommended for exposure to cyclical agribusiness and chemicals growth.
I can also expand on seasonal demand cycles in fertilizers and sugar to show how they impact DCM Shriram’s earnings if you’d like.