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Last Updated on: 24 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 523369 | NSE: DCMSRIND

Fundamental Analysis of DCM Shriram Industries Ltd

Share Price and Basic Stock Data

Last Updated: June 24, 2024, 7:52 pm

Market Cap 1,961 Cr.
Current Price 226
High / Low242/76.6
Stock P/E17.0
Book Value 93.7
Dividend Yield0.89 %
ROCE16.2 %
ROE15.1 %
Face Value 2.00
PEG Ratio4.51

Competitors of DCM Shriram Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ugar Sugar Works Ltd 933 Cr. 83.6136/64.044.1 20.90.60 %10.8 %9.30 % 1.00
Bajaj Hindusthan Sugar Ltd 5,258 Cr. 41.144.4/15.4 35.00.00 %0.80 %1.90 % 1.00
Dhampure Speciality Sugars Ltd 74.9 Cr. 94.5116/42.075.7 33.60.00 %3.15 %3.78 % 10.0
KM Sugar Mills Ltd 426 Cr. 46.350.4/24.215.2 33.00.00 %9.78 %9.71 % 2.00
Magadh Sugar & Energy Ltd 1,083 Cr. 768866/4039.31 5290.91 %14.5 %16.8 % 10.0
Industry Average1,925.55 Cr309.7824.23213.300.72%9.95%12.05%6.71

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales516462488519654709533574535522580468512
Expenses475428457479618667518547476465535416443
Operating Profit40343140364215275857465269
OPM %8%7%6%8%6%6%3%5%11%11%8%11%14%
Other Income74510423575585
Interest1012118101087811969
Depreciation78889999910101010
Profit before tax3020173421251174842324455
Tax %35%33%28%30%24%34%4%33%35%35%35%34%30%
Net Profit2013132416161113227212939
EPS in Rs2.241.521.452.781.861.880.111.303.623.112.373.344.44

Last Updated: June 9, 2024, 3:04 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 8, 2024, 6:01 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,0951,3131,2981,2161,4941,7041,6891,7951,9432,1232,3512,083
Expenses1,0261,2211,2351,1321,3001,6031,5721,6481,7921,9812,2081,858
Operating Profit69936484194101117147151142142224
OPM %6%7%5%7%13%6%7%8%8%7%6%11%
Other Income1516891616202217241823
Interest424041353828244540403436
Depreciation212218191919212829333639
Profit before tax20461340153709297999391173
Tax %43%36%60%15%20%16%19%1%34%29%34%33%
Net Profit632734122597596656660115
EPS in Rs0.683.660.773.9213.986.748.6111.027.447.616.9213.26
Dividend Payout %44%19%26%15%14%12%14%9%20%20%14%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)433.33%-78.12%385.71%258.82%-51.64%27.12%28.00%-32.29%1.54%-9.09%91.67%
Change in YoY Net Profit Growth (%)0.00%-511.46%463.84%-126.89%-310.46%78.76%0.88%-60.29%33.83%-10.63%100.76%

Growth

Compounded Sales Growth
10 Years:5%
5 Years:4%
3 Years:2%
TTM:-11%
Compounded Profit Growth
10 Years:14%
5 Years:10%
3 Years:21%
TTM:93%
Stock Price CAGR
10 Years:26%
5 Years:41%
3 Years:51%
1 Year:174%
Return on Equity
10 Years:14%
5 Years:12%
3 Years:11%
Last Year:15%

Last Updated: June 8, 2024, 6:01 am

Balance Sheet

Last Updated: June 8, 2024, 6:01 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital171717171717171717171717
Reserves201224222250383417481542599655699798
Borrowings407298419408409419466613508566510529
Other Liabilities314419345397349267380436556541724855
Total Liabilities9409591,0041,0731,1571,1211,3441,6091,6811,7791,9512,199
Fixed Assets291293319321329330390456495584632627
CWIP1518983182334243327
Investments112921183523402761254551
Other Assets6236186557267907498921,0921,1011,1371,2721,514
Total Assets9409591,0041,0731,1571,1211,3441,6091,6811,7791,9512,199

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 19186-4668746384382255916977
Cash from Investing Activity -3-39-25-18-20-33-103-62-98-71-68-43
Cash from Financing Activity -19-15271-48-54-271762-1500-101-22
Net Cash Flow-4-511-04-337-24-12-111

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-338.00-205.00-355.00-324.00-215.00-318.00-349.00-466.00-357.00-424.00-368.00-305.00

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 Days323127343635413837443848
Inventory Days219173180244228152216211185168147220
Days Payable110134104131105611078796716394
Cash Conversion Cycle14171103146160127151161126141121174
Working Capital Days91518385103971021119610388126
ROCE %9%15%9%11%26%12%13%13%12%11%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters50.11%50.11%50.11%50.11%50.11%50.11%50.11%50.11%50.11%50.11%50.11%50.11%
FIIs0.00%0.11%0.12%0.32%0.35%0.25%0.09%0.06%0.13%0.99%1.40%2.00%
DIIs6.69%6.69%0.00%0.02%0.01%7.83%7.83%7.83%7.83%7.83%7.83%7.86%
Public43.20%43.09%49.77%49.56%49.53%41.80%41.96%42.01%41.92%41.07%40.67%40.03%
No. of Shareholders46,41548,05553,64064,11864,50165,12962,92662,28061,84861,43061,70659,746

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.0010.0010.00
Basic EPS (Rs.)13.276.927.6137.2255.11
Diluted EPS (Rs.)13.276.927.6137.2255.11
Cash EPS (Rs.)17.7111.0011.3355.2270.95
Book Value[Excl.RevalReserv]/Share (Rs.)93.7282.3877.24354.56321.60
Book Value[Incl.RevalReserv]/Share (Rs.)93.7282.3877.24354.56321.60
Revenue From Operations / Share (Rs.)239.41270.25244.061116.771031.67
PBDIT / Share (Rs.)28.3918.3919.0097.5297.25
PBIT / Share (Rs.)23.9214.2715.2380.7681.38
PBT / Share (Rs.)19.8110.4110.6157.9255.78
Net Profit / Share (Rs.)13.236.877.5638.4655.08
NP After MI And SOA / Share (Rs.)13.266.927.6137.2255.11
PBDIT Margin (%)11.856.807.788.739.42
PBIT Margin (%)9.995.276.247.237.88
PBT Margin (%)8.273.854.345.185.40
Net Profit Margin (%)5.522.543.093.445.33
NP After MI And SOA Margin (%)5.532.553.123.335.34
Return on Networth / Equity (%)14.158.399.8510.4917.13
Return on Capital Employeed (%)20.6013.4615.1817.6917.92
Return On Assets (%)5.243.083.723.855.95
Long Term Debt / Equity (X)0.040.100.190.180.31
Total Debt / Equity (X)0.620.690.810.670.94
Asset Turnover Ratio (%)1.001.271.241.191.22
Current Ratio (X)1.221.191.241.261.31
Quick Ratio (X)0.600.560.530.510.50
Inventory Turnover Ratio (X)1.902.061.821.621.53
Dividend Payout Ratio (NP) (%)0.0021.6919.6913.4319.95
Dividend Payout Ratio (CP) (%)0.0013.5813.189.2615.49
Earning Retention Ratio (%)0.0078.3180.3186.5780.05
Cash Earning Retention Ratio (%)0.0086.4286.8290.7484.51
Interest Coverage Ratio (X)6.914.774.114.273.80
Interest Coverage Ratio (Post Tax) (X)4.222.782.642.683.15
Enterprise Value (Cr.)2074.201009.571319.18696.61665.65
EV / Net Operating Revenue (X)0.990.420.620.350.37
EV / EBITDA (X)8.406.317.984.113.93
MarketCap / Net Operating Revenue (X)0.760.220.370.160.10
Retention Ratios (%)0.0078.3080.3086.5680.04
Price / BV (X)1.950.751.190.520.34
Price / Net Operating Revenue (X)0.760.220.370.160.10
EarningsYield0.070.110.080.190.49

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 242.67

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.

Undervalued: 7.38% compared to the current price 226

Intrinsic Value: 251.82

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 11.42% compared to the current price ₹226

Last 5 Year EPS CAGR: 3.77%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (1.25 cr) and profit (82.25 cr) over the years.
  1. The stock has a low average ROCE of 11.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 94.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 135.17, which may not be favorable.
  4. The company has higher borrowings (462.67) compared to reserves (455.92), which may suggest financial risk.

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 Industries Ltd:
    1. Net Profit Margin: 5.52%
      • 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: 20.60% (Industry Average ROCE: %)
      • 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%: 14.15% (Industry Average ROE: %)
      • 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): 4.22
      • 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: 0.60
      • 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: 17.0 (Industry average Stock P/E: )
      • 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: 0.62
      • 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 Industries Ltd. is a Public Limited Listed company incorporated on 21/02/1989 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1989PLC035140 and registration number is 035140. Currently Company is involved in the business activities of Manufacture of sugar. Company’s Total Operating Revenue is Rs. 2123.12 Cr. and Equity Capital is Rs. 17.40 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Sugar5th Floor, Kanchenjunga Bldg., 18 Barakhamba Road, New Delhi Delhi 110001dsil@dcmsr.com
http://www.dcmsr.com
Management
NamePosition Held
Mr. S B MathurChairman & Non-Exe.Director
Mr. Alok B ShriramManaging Director & CEO
Mr. Madhav B ShriramManaging Director
Ms. Urvashi Tilak DhaWhole Time Director
Mr. Vineet ManaktalaDirector - Finance & CFO
Mr. P R KhannaDirector
Mr. Ravinder NarainDirector
Mr. S C KumarDirector
Mrs. V Kavitha DuttDirector
Mr. Sanjay Chandrakant KirloskarDirector
Mr. Manoj KumarDirector
Mrs. Mini IpeNominee Director

FAQ

What is the latest fair value of DCM Shriram Industries Ltd?

The latest fair value of DCM Shriram Industries Ltd is ₹242.67.

What is the Market Cap of DCM Shriram Industries Ltd?

The Market Cap of DCM Shriram Industries Ltd is 1,961 Cr..

What is the current Stock Price of DCM Shriram Industries Ltd as on 24 June 2024?

The current stock price of DCM Shriram Industries Ltd as on 24 June 2024 is ₹226.

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

In FY 2024, the High / Low of DCM Shriram Industries Ltd stocks is 242/76.6.

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

The Stock P/E of DCM Shriram Industries Ltd is 17.0.

What is the Book Value of DCM Shriram Industries Ltd?

The Book Value of DCM Shriram Industries Ltd is 93.7.

What is the Dividend Yield of DCM Shriram Industries Ltd?

The Dividend Yield of DCM Shriram Industries Ltd is 0.89 %.

What is the ROCE of DCM Shriram Industries Ltd?

The ROCE of DCM Shriram Industries Ltd is 16.2 %.

What is the ROE of DCM Shriram Industries Ltd?

The ROE of DCM Shriram Industries Ltd is 15.1 %.

What is the Face Value of DCM Shriram Industries Ltd?

The Face Value of DCM Shriram Industries 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 Industries 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