ScoreWhy is DCM Shriram Ltd. ?
1
High Management Efficiency with a high ROCE of 15.50%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.95 times
3
Poor long term growth as Operating profit has grown by an annual rate -0.53% of over the last 5 years
4
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CF(Y) Highest at Rs 1,233.80 Cr
- PAT(9M) Higher at Rs 1,200.02 Cr
- EPS(Q) Highest at Rs 44.19
5
With ROCE of 10.2, it has a Very Attractive valuation with a 1.8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -24.27%, its profits have risen by 120% ; the PEG ratio of the company is 0.1
6
Majority shareholders : Promoters
7
Below par performance in long term as well as near term
- Along with generating -24.27% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to DCM Shriram should be less than 10%
- Overall Portfolio exposure to Diversified should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is DCM Shriram for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
DCM Shriram
-24.27%
-0.75
32.17%
Sensex
-2.63%
-0.19
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.63%
EBIT Growth (5y)
-0.53%
EBIT to Interest (avg)
12.00
Debt to EBITDA (avg)
1.45
Net Debt to Equity (avg)
0.26
Sales to Capital Employed (avg)
1.36
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
20.57%
Pledged Shares
0
Institutional Holding
12.35%
ROCE (avg)
17.20%
ROE (avg)
12.14%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
67
Price to Book Value
2.06
EV to EBIT
17.67
EV to EBITDA
11.68
EV to Capital Employed
1.84
EV to Sales
1.29
PEG Ratio
0.10
Dividend Yield
1.10%
ROCE (Latest)
10.24%
ROE (Latest)
11.13%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend20What is working for the Company
OPERATING CF(Y)
Highest at Rs 1,233.80 Cr
PAT(9M)
Higher at Rs 1,200.02 Cr
EPS(Q)
Highest at Rs 44.19
-5What is not working for the Company
PBT LESS OI(Q)
At Rs 167.11 cr has Fallen at -18.4% (vs previous 4Q average
DPR(Y)
Lowest at 20.57%
DEBT-EQUITY RATIO(HY)
Highest at 0.38 times
Loading Valuation Snapshot...
Here's what is working for DCM Shriram
Profit After Tax (PAT) - Quarterly
At Rs 613.33 cr has Grown at 185.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 214.53 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Cash Flow - Annually
Highest at Rs 1,233.80 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 613.33 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 44.19
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for DCM Shriram
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 167.11 cr has Fallen at -18.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 204.83 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.38 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Dividend Payout Ratio (DPR) - Annually
Lowest at 20.57%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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