Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

DCM Shriram Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 11:07 pm

Market Cap 20,230 Cr.
Current Price 1,297
High / Low1,371/832
Stock P/E38.8
Book Value 426
Dividend Yield0.51 %
ROCE8.99 %
ROE6.60 %
Face Value 2.00
PEG Ratio-13.24

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for DCM Shriram Ltd

Competitors of DCM Shriram Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
NESCO Ltd 7,013 Cr. 9951,059/74918.7 3450.60 %22.4 %17.0 % 2.00
DCM Shriram Ltd 20,230 Cr. 1,2971,371/83238.8 4260.51 %8.99 %6.60 % 2.00
Balmer Lawrie & Company Ltd 3,694 Cr. 216320/15314.0 1043.94 %15.6 %14.7 % 10.0
3M India Ltd 35,953 Cr. 31,90241,000/28,42458.8 1,9060.50 %40.5 %30.5 % 10.0
Industry Average16,722.50 Cr8,602.5032.58695.251.39%21.87%17.20%6.00

All Competitor Stocks of DCM Shriram Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,1592,1911,9572,1452,7912,8732,8512,7403,2362,7202,7802,7083,035
Expenses1,7551,8301,6741,8552,2022,2392,4152,4702,6822,3742,6142,5942,590
Operating Profit404361283290589635436270554346166114445
OPM %19%16%14%14%21%22%15%10%17%13%6%4%15%
Other Income17311721252828323326172235
Interest28252723171717111312251515
Depreciation56585759616161636671727477
Profit before tax3373082162295365853872285092898647389
Tax %25%25%27%31%35%31%34%44%33%35%34%32%38%
Net Profit2532321581583504012541283421875732240
EPS in Rs16.2514.8610.1210.1622.4325.7316.298.2221.9411.973.632.0715.42

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5,0395,5396,1825,6395,7805,7886,9007,7717,7678,3089,62711,54711,592
Expenses4,6934,9995,6735,2405,2765,0175,8666,4026,5757,1567,8319,94110,411
Operating Profit3465405093995057711,0351,3691,1921,1521,7961,6061,181
OPM %7%10%8%7%9%13%15%18%15%14%19%14%10%
Other Income-19-2050524147568888929212099
Interest160155149112857183119164122855365
Depreciation15714713811098114141157219233238260282
Profit before tax102192722283626338671,1808978891,5651,413932
Tax %-25%7%11%8%17%13%23%24%20%24%32%36%
Net Profit122032422113015526699047226741,067911618
EPS in Rs0.7212.2314.8512.9818.5833.9741.2256.9945.9643.1768.4558.4139.61
Dividend Payout %56%13%14%17%17%17%20%17%18%22%22%24%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)1591.67%19.21%-12.81%42.65%83.39%21.20%35.13%-20.13%-6.65%58.31%-14.62%
Change in YoY Net Profit Growth (%)0.00%-1572.45%-32.02%55.46%40.73%-62.19%13.93%-55.26%13.48%64.96%-72.93%

DCM Shriram Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:7%
3 Years:10%
TTM:-2%
Compounded Profit Growth
10 Years:6%
5 Years:-14%
3 Years:-14%
TTM:-16%
Stock Price CAGR
10 Years:23%
5 Years:33%
3 Years:10%
1 Year:44%
Return on Equity
10 Years:17%
5 Years:15%
3 Years:14%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:38 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital33333333333331313131313131
Reserves1,4621,6541,8262,0582,4953,0073,4944,0184,6175,4706,1626,4916,611
Borrowings1,5571,1777601,0641,0747561,6102,1501,5211,5771,7072,1522,203
Other Liabilities1,6991,9881,7981,8521,9721,8572,0011,9351,6212,2902,8192,8743,255
Total Liabilities4,7514,8524,4175,0075,5745,6527,1368,1357,7909,36910,72011,54712,101
Fixed Assets1,5651,5131,4431,4282,0222,2112,6903,4993,3603,4084,1054,2225,974
CWIP44516235765117332591094941,6302,6151,188
Investments720363531303129303125454
Other Assets3,1343,0852,9063,1863,4573,2944,0844,5484,2915,4634,9734,6564,885
Total Assets4,7514,8524,4175,0075,5745,6527,1368,1357,7909,36910,72011,54712,101

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3199691671007728277754961,8871,2241,296794
Cash from Investing Activity +40-200228-326-411-321-803-518-642-888-1,543-1,070
Cash from Financing Activity +-443-585-594166-185-571277183-918-275-235169
Net Cash Flow-84184-200-59176-6524816132762-482-107

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow346.00539.00508.00-361.00504.00770.00-755.000.00-1.000.000.000.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days686169816348495123342722
Inventory Days148105120141194163190208146190153168
Days Payable1141201191231381101138957796565
Cash Conversion Cycle1024771100120100126170111145115124
Working Capital Days8546657767647310264675258
ROCE %14%14%12%15%21%25%29%19%16%24%19%9%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters66.53%66.52%66.52%66.53%66.53%66.53%66.53%66.53%66.53%66.53%66.53%66.53%
FIIs2.98%3.02%3.05%2.97%2.74%2.67%2.58%2.86%3.41%3.76%3.74%3.77%
DIIs9.04%8.89%8.77%8.62%8.82%8.81%8.66%8.50%8.37%8.07%8.07%7.66%
Government0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%
Public20.36%20.43%20.59%20.84%20.86%20.97%21.26%21.18%20.74%20.70%20.77%21.28%
Others1.06%1.11%1.05%1.01%1.04%1.01%0.96%0.92%0.94%0.92%0.87%0.72%
No. of Shareholders54,12064,11864,49961,74558,41557,79658,87055,81155,15757,17160,14858,120

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Tata Equity P/E Fund - Regular Plan512,6120.9255.854612024-11-20111095.66%
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%512,6120.9255.854612024-11-20111095.66%
Nippon India Nifty Smallcap 250 Index Fund29,2180.382.714612024-11-206237.96%
ICICI Prudential Nifty Smallcap 250 Index Fund6,8480.430.754612024-11-201385.47%
HDFC NIFTY Smallcap 250 ETF3,1270.430.344612024-11-20578.31%
HDFC Nifty Smallcap 250 Index Fund2,4250.430.264612024-11-20426.03%
ICICI Prudential S&P BSE 500 ETF4610.040.054612024-11-200%
HDFC S&P BSE 500 Index Fund640.040.014612024-11-20-86.12%
HDFC S&P BSE 500 ETF250.0404612024-11-20-94.58%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)28.6758.4168.4543.1746.91
Diluted EPS (Rs.)28.6758.4168.4543.1745.96
Cash EPS (Rs.)47.8574.7083.1957.7659.87
Book Value[Excl.RevalReserv]/Share (Rs.)416.08395.14350.99296.53258.75
Book Value[Incl.RevalReserv]/Share (Rs.)416.08395.14350.99296.53258.75
Revenue From Operations / Share (Rs.)696.81736.65614.19530.03495.51
PBDIT / Share (Rs.)69.49110.12120.4779.3982.61
PBIT / Share (Rs.)50.1693.52105.2964.5168.63
PBT / Share (Rs.)44.5890.1599.8456.7357.24
Net Profit / Share (Rs.)28.5258.1168.0142.8945.90
NP After MI And SOA / Share (Rs.)28.5258.1168.0942.9645.72
PBDIT Margin (%)9.9714.9419.6114.9716.67
PBIT Margin (%)7.1912.6917.1412.1713.85
PBT Margin (%)6.3912.2316.2510.7011.55
Net Profit Margin (%)4.097.8811.078.099.26
NP After MI And SOA Margin (%)4.097.8811.088.109.22
Return on Networth / Equity (%)6.8514.7019.4014.4817.69
Return on Capital Employeed (%)8.9517.9723.6016.9319.96
Return On Assets (%)3.878.4911.398.648.80
Long Term Debt / Equity (X)0.210.180.170.210.24
Total Debt / Equity (X)0.310.260.270.270.50
Asset Turnover Ratio (%)0.981.151.111.031.00
Current Ratio (X)1.621.842.182.291.61
Quick Ratio (X)0.640.901.211.300.81
Inventory Turnover Ratio (X)2.092.041.921.681.61
Dividend Payout Ratio (NP) (%)26.5026.1919.86-12.7321.32
Dividend Payout Ratio (CP) (%)15.8020.3716.24-9.4616.33
Earning Retention Ratio (%)73.5073.8180.140.0078.68
Cash Earning Retention Ratio (%)84.2079.6383.760.0083.67
Interest Coverage Ratio (X)12.4432.6922.1210.207.90
Interest Coverage Ratio (Post Tax) (X)6.1118.2513.496.515.48
Enterprise Value (Cr.)14894.6112389.3817624.917800.094862.87
EV / Net Operating Revenue (X)1.361.071.830.930.62
EV / EBITDA (X)13.677.189.336.273.76
MarketCap / Net Operating Revenue (X)1.231.021.840.940.43
Retention Ratios (%)73.4973.8080.130.0078.67
Price / BV (X)2.071.893.221.690.83
Price / Net Operating Revenue (X)1.231.021.840.940.43
EarningsYield0.030.070.060.080.21

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of DCM Shriram Ltd as of November 21, 2024 is: 1,096.46

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, DCM Shriram Ltd is Overvalued by 15.46% compared to the current share price 1,297.00

Intrinsic Value of DCM Shriram Ltd as of November 21, 2024 is: 1,064.33

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, DCM Shriram Ltd is Overvalued by 17.94% compared to the current share price 1,297.00

Last 5 Year EPS CAGR: -2.93%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 18.08%, which is a positive sign.
  2. The company has higher reserves (3,797.31 cr) compared to borrowings (1,485.23 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (6.92 cr) and profit (408.62 cr) over the years.
  1. The stock has a high average Working Capital Days of 68.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 110.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in DCM Shriram Ltd:
    1. Net Profit Margin: 4.09%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 8.95% (Industry Average ROCE: 21.87%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 6.85% (Industry Average ROE: 17.2%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 6.11
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.64
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 38.8 (Industry average Stock P/E: 32.58)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.31
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

DCM Shriram Ltd. is a Public Limited Listed company incorporated on 06/02/1989 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1989PLC034923 and registration number is 034923. Currently Company is involved in the business activities of Wholesale of agricultural raw materials and live animals. Company’s Total Operating Revenue is Rs. 9454.57 Cr. and Equity Capital is Rs. 31.35 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Diversified2nd Floor (West Wing), New Delhi Delhi 110037response@dcmshriram.com
http://www.dcmshriram.com
Management
NamePosition Held
Mr. Ajay S ShriramChairman & Sr.Mng.Director
Mr. Vikram S ShriramVice Chairman & Mng.Director
Mr. Ajit S ShriramJoint Managing Director
Mr. Aditya A ShriramDeputy Managing Director
Mr. K K SharmaWhole Time Director
Mr. Pradeep DinodiaInd. Non-Executive Director
Mr. Sunil Kant MunjalInd. Non-Executive Director
Mr. Vimal BhandariInd. Non-Executive Director
Ms. Ramni NirulaInd. Non-Executive Director
Mr. Pravesh SharmaInd. Non-Executive Director
Justice(Retd) Vikramajit SenInd. Non-Executive Director
Mr. Rabinarayan MishraNominee Director

FAQ

What is the latest intrinsic value of DCM Shriram Ltd?

The latest intrinsic value of DCM Shriram Ltd as on 21 November 2024 is ₹1096.46, which is 15.46% lower than the current market price of ₹1,297.00.

What is the Market Cap of DCM Shriram Ltd?

The Market Cap of DCM Shriram Ltd is 20,230 Cr..

What is the current Stock Price of DCM Shriram Ltd as on 21 November 2024?

The current stock price of DCM Shriram Ltd as on 21 November 2024 is ₹1,297.

What is the High / Low of DCM Shriram Ltd stocks in FY 2024?

In FY 2024, the High / Low of DCM Shriram Ltd stocks is 1,371/832.

What is the Stock P/E of DCM Shriram Ltd?

The Stock P/E of DCM Shriram Ltd is 38.8.

What is the Book Value of DCM Shriram Ltd?

The Book Value of DCM Shriram Ltd is 426.

What is the Dividend Yield of DCM Shriram Ltd?

The Dividend Yield of DCM Shriram Ltd is 0.51 %.

What is the ROCE of DCM Shriram Ltd?

The ROCE of DCM Shriram Ltd is 8.99 %.

What is the ROE of DCM Shriram Ltd?

The ROE of DCM Shriram Ltd is 6.60 %.

What is the Face Value of DCM Shriram Ltd?

The Face Value of DCM Shriram Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in DCM Shriram Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE