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DCM Shriram Ltd

NSE: DCMSHRIRAM BSE: 523367

1094.20

(-1.07%)

Sat, 28 Feb 2026, 11:40 pm

DCM Shriram Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (5.6x coverage).
  • DCM Shriram's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • DCM Shriram's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • DCM Shriram is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • DCM Shriram is profitable, therefore cash runway is not a concern.
  • DCM Shriram is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (24.3%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 2.2x debt.
  • DCM Shriram's cash and other short term assets cover its long term commitments.
  • Interest payments on debt are well covered by earnings (EBIT is 5.9x coverage).
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Cons

  • The level of debt compared to net worth has increased over the past 5 years (40.8% vs 50.4% today).
  • DCM Shriram's level of debt (50.4%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the DCM Shriram board of directors is over 10 years, this suggests they are a seasoned and experienced board.
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Cons

  • Ajay's remuneration is higher than average for companies of similar size in India.
  • Ajay's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.

misc

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Pros

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    Cons

    • DCM Shriram is not covered by any analysts.
    • DCM Shriram has significant price volatility in the past 3 months.

    past

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    Pros

    • DCM Shriram has delivered over 20% year on year earnings growth in the past 5 years.
    • DCM Shriram used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
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    Cons

    • DCM Shriram's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • DCM Shriram's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • DCM Shriram has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • DCM Shriram's 1-year earnings growth is negative, it can't be compared to the IN Chemicals industry average.

    value

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    Pros

    • DCM Shriram is good value based on earnings compared to the IN Chemicals industry average.
    • DCM Shriram is good value based on earnings compared to the India market.
    • NSEI:DCMSHRIRAM is up 18.7% outperforming the Chemicals industry which returned 6.9% over the past month.
    • NSEI:DCMSHRIRAM is up 18.7% outperforming the market in India which returned 8% over the past month.
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    Cons

    • DCM Shriram's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • DCM Shriram's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • DCM Shriram is overvalued based on assets compared to the IN Chemicals industry average.
    • DCMSHRIRAM underperformed the Chemicals industry which returned 2.2% over the past year.
    • DCMSHRIRAM underperformed the Market in India which returned -14.5% over the past year.

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