Why is DCM Shriram falling/rising?

Nov 17 2025 10:18 PM IST
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As of 17-Nov, DCM Shriram Ltd. is facing a decline in its stock price, currently at 1,213.60, down 1.8% today and 2.71% over the past week. Despite solid fundamentals, including a high ROCE and low debt-to-equity ratio, the stock has underperformed its sector and the broader market, indicating potential undervaluation amid reduced investor interest.
As of 17-Nov, DCM Shriram Ltd. is experiencing a decline in its stock price, currently at 1,213.60, which reflects a decrease of 22.2 points or 1.8%. The stock has underperformed its sector today by 6.16%, with an intraday low of Rs 1190.8, marking a drop of 3.64%. Over the past week, the stock has decreased by 2.71%, and over the past month, it has fallen by 1.77%. Despite a year-to-date increase of 5.16%, the stock's performance over the last year shows a decline of 6.00%. The company maintains a high management efficiency with a return on capital employed (ROCE) of 18.90% and a low debt-to-equity ratio of 0.04, indicating solid fundamentals. However, the stock is trading at a discount compared to its peers, and despite a rise in profits by 36.6% over the past year, the stock's negative return has led to a PEG ratio of 0.7, suggesting potential undervaluation.

In the broader market context, the Sensex has gained 1.69% over the past week, contrasting with DCM Shriram's decline, which highlights a significant underperformance relative to the benchmark. The diversified sector has seen an increase of 4.41%, further emphasizing the stock's struggles. Additionally, a notable drop in investor participation, with delivery volume falling by 31.57% against the five-day average, suggests waning interest among investors. While the stock remains liquid enough for trading, the combination of underperformance against both the sector and the benchmark, along with reduced investor engagement, contributes to the downward pressure on DCM Shriram's stock price.
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