Key Events This Week
Feb 09: Stock opens strong at Rs.88.52, up 1.39%
Feb 10: Price dips to Rs.87.80 amid mixed market sentiment
Feb 12: Sharp decline to Rs.86.10 following negative market cues
Feb 13: Quarterly results reveal losses; stock closes at Rs.84.39 (-1.99%)
Monday, 09 February 2026: Positive Start Amid Broader Market Gains
DCM Ltd began the week on a positive note, closing at Rs.88.52, a gain of 1.39% from the previous Friday’s close of Rs.87.31. This outperformance was in line with the Sensex’s 1.04% rise to 37,113.23, reflecting a broadly optimistic market mood. The stock’s volume was relatively low at 486 shares, suggesting cautious participation despite the price uptick.
Tuesday, 10 February 2026: Profit Taking Leads to Minor Decline
The stock reversed some of Monday’s gains, slipping 0.81% to close at Rs.87.80. This decline came despite the Sensex advancing 0.25% to 37,207.34, indicating a divergence from the broader market. Volume surged to 2,599 shares, signalling increased trading activity possibly driven by profit booking or anticipation of upcoming quarterly results.
Wednesday, 11 February 2026: Modest Recovery on Low Volume
DCM Ltd edged up 0.54% to Rs.88.27, partially recovering from the previous day’s dip. The Sensex also gained 0.13% to 37,256.72, maintaining a steady upward trajectory. However, the low volume of 425 shares suggested limited conviction behind the move, with investors likely awaiting clarity from the company’s financial disclosures.
Thursday, 12 February 2026: Sharp Decline Amid Market Weakness
The stock suffered a significant setback, falling 2.46% to Rs.86.10. This drop was sharper than the Sensex’s 0.56% decline to 37,049.40, indicating stock-specific pressures. The low volume of 223 shares reflected subdued trading interest, possibly due to uncertainty ahead of the quarterly results announcement. The negative price action foreshadowed the disappointing financial performance revealed the following day.
Friday, 13 February 2026: Quarterly Results Trigger Further Sell-Off
DCM Ltd’s share price closed at Rs.84.39, down 1.99% on the day and marking a 3.34% loss for the week. The broader market was also weak, with the Sensex falling 1.40% to 36,532.48. The company reported its quarterly results for December 2025, revealing a sharp decline in profitability despite record net sales of ₹17.68 crores. The net loss after tax stood at ₹-0.30 crores, a 104.6% drop compared to the previous four-quarter average, signalling severe margin pressures.
Operating profit before depreciation, interest and tax (PBDIT) was negative at ₹-0.53 crores, with operating margins contracting to -3.00%. Earnings per share declined to ₹-0.16, reflecting the challenging earnings environment. Despite these setbacks, the company’s return on capital employed (ROCE) remained robust at 61.59% for the half-year period, indicating efficient capital utilisation amid operational difficulties.
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Mojo Score Downgrade Reflects Heightened Risk
Reflecting the deteriorating financial performance, DCM Ltd’s Mojo Score dropped to 17.0, accompanied by a downgrade to a Strong Sell rating as of 12 January 2026. This downgrade underscores the market’s cautious stance given the company’s margin contraction and losses. The stock’s underperformance relative to the Sensex this week and over recent periods aligns with this negative outlook.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.88.52 | +1.39% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.87.80 | -0.81% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.88.27 | +0.54% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.86.10 | -2.46% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.84.39 | -1.99% | 36,532.48 | -1.40% |
Key Takeaways
Positive Aspects: DCM Ltd achieved its highest quarterly net sales of ₹17.68 crores, indicating top-line growth momentum. The company’s ROCE remains strong at 61.59%, suggesting efficient capital utilisation despite earnings challenges.
Cautionary Signals: The company reported a net loss after tax of ₹-0.30 crores, a 104.6% decline from its previous average, with operating margins turning negative at -3.00%. Earnings per share fell to ₹-0.16, and the Mojo Score downgrade to Strong Sell reflects increased risk. The stock underperformed the Sensex by 2.80% this week, highlighting investor concerns.
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Conclusion
DCM Ltd’s week was marked by a clear divergence between revenue growth and profitability, with the latter deteriorating sharply in the December 2025 quarter. The stock’s 3.34% weekly decline, underperforming the Sensex by 2.80%, reflects investor apprehension about the company’s ability to convert sales into sustainable earnings. While the strong ROCE offers some operational reassurance, the negative margins and losses present significant challenges. The downgrade to a Strong Sell rating further emphasises the cautious market stance. Going forward, the company’s capacity to improve margins and return to profitability will be critical for reversing the current downtrend and restoring investor confidence.
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