DCM Shriram Ltd.
NSE: DCMSHRIRAMDCM Shriram Ltd.: A 30-second snapshot
DCM Shriram is a diversified NSE conglomerate operating across chemicals, sugar, and agri-inputs, currently priced at Rs 1,127.2 — below its 50-DMA of Rs 1,130.1 and 200-DMA of Rs 1,197.8, with a 24.3% drawdown from the 52-week high. The business reported a 5-year revenue CAGR of 18.9% and FY26 PAT of Rs 3.7 billion, though capital-quality metrics remain uneven: ROE of 11.62%, profit margin of 5.9%, and debt-to-equity of 37.80 with a rising debt trend. Quality score stands at 54 on a 100-point scale.
P/E
20.6
Forward P/E
—
ROE
+11.6%
Debt / Equity
37.80
Profit Margin
+5.9%
Div. Yield
+1.3%
5Y ROE > 15%
1/5
5Y FCF > 0
2/5
Quality
42/100
News
8 headlines · 5 positive · 0 negative
DCMSHRIRAM: Strong revenue growth and strategic CapEx drive resilience amid volatile markets - TradingView
TradingView
DCMSHRIRAM: FY 2026 saw double-digit revenue growth, strong chemical expansion, and continued margin pressures in sugar - TradingView
TradingView
DCM Shriram March-Quarter Consol Net PAT 3.7 Billion Rupees - TradingView
TradingView
DCMSHRIRAM: FY26 saw robust profit growth, higher dividends, and major capacity expansions - TradingView
TradingView
DCM Shriram Limited Reports Earnings Results for the Fourth Quarter and Full Year Ended March 31, 2026 - marketscreener.com
marketscreener.com
Recent context
- ·FY26 full-year results reported PAT of Rs 3.7 billion with double-digit revenue growth, higher dividends, and major capacity expansions in chemicals — results released May 13, 2026.
- ·Recent commentary flagged continued margin pressures in the sugar segment despite strong chemical expansion, reflecting bifurcated earnings dynamics across business lines.
- ·The stock registered a 3-month price change of -1.73% through mid-May 2026 against a 1-year gain of 10.94%, with nearest support levels at Rs 1,085 and Rs 1,053.
Strengths
- +5-year revenue CAGR of 18.9% demonstrates consistent top-line expansion across the conglomerate's chemical, sugar, and agri-input segments.
- +PE of 20.6 is the lowest among the 3-company Conglomerate peer set — peers trade at 39.1 and 93.5 respectively — reflecting a modest earnings multiple relative to peers.
- +FY26 dividend yield of 1.26% alongside reported capacity expansions in chemicals signals ongoing capital allocation toward growth infrastructure.
- +Quality score of 54 ranks 1st among the 3 peers in the sector comparison (peers at 37 and 25), indicating relative operational standing within this peer group.
Weaknesses
- −D/E of 37.80 with a rising debt trend is materially elevated for a non-financial conglomerate; FCF was positive in only 2 of the tracked years, narrowing the margin for debt servicing from internal cash generation.
- −ROE of 11.62% has exceeded 15% in only 1 of the available years, and the consistency score of 10 indicates earnings quality has not been sustained across cycles.
- −Price is below both the 50-DMA of Rs 1,130.1 and 200-DMA of Rs 1,197.8, with RSI at 40.4 and a 24.3% drawdown from the 52-week high — the stock has underperformed its own recent price history on a 3-month and year-to-date basis.
- −Profit margin of 5.9% leaves limited operational buffer; the sugar segment specifically faces continued margin pressure per FY26 commentary, even as chemical revenues expanded.
Open questions
- ?How much of the elevated D/E of 37.80 is attributable to the sugar business specifically, and how does DCM Shriram's debt structure compare to listed sugar-sector peers rather than broader conglomerates?
- ?Does the 5-year earnings growth figure of 106.7% reflect a genuine improvement in business quality, or recovery from an unusually depressed base — and what do per-segment margins show over the same period?
- ?The chemical capacity expansion referenced in FY26 results — what is the expected timeline to revenue contribution, and how does the capital outlay interact with the current debt-to-equity trajectory?
- ?Given that the price is 24.3% below the 52-week high despite positive FY26 results, what market or macro factors are driving the divergence between reported earnings and price performance?
Peer comparison: Conglomerate
Ranks 1 of 3 on qualityTechnical state
Current price
₹1,127.20
SMA 50
₹1,130.11
SMA 200
₹1,197.82
RSI (14)
40.4 (neutral)
From 52w high
-24.3%
1Y return
+10.9%
3M return
-1.7%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 37.80 is significantly elevated for a non-financial conglomerate; the debt trend is classified as rising, compressing financial flexibility and raising refinancing exposure.
- highFree cash flow positive in only 2 of the available years and ROE above 15% in just 1 year, with a consistency score of 10 — indicating structurally uneven capital returns despite a reported 5-year earnings growth figure of 106.7%.
- mediumPrice of Rs 1,127.2 is below both the 50-DMA of Rs 1,130.1 and 200-DMA of Rs 1,197.8, and sits 24.3% below the 52-week high — sustained underperformance relative to own recent history.
- mediumProfit margin of 5.9% is thin for a multi-business group carrying D/E of 37.80; limited margin buffer against input-cost cycles, particularly in sugar and chlor-alkali segments.
- lowThe Conglomerate peer universe contains only 3 companies including DCMSHRIRAM itself; sector-ranking comparisons — 1st of 3 on PE and quality score — carry low statistical weight.
- lowNo analyst rating or count is available; forward PE is not reported. News sample of 8 articles is limited for robust sentiment inference.
Cross-section contradictions
- 5-year revenue growth of 18.9% CAGR has not translated into sustained profitability — ROE of 11.62%, FCF positive in only 2 years, and ROE exceeding 15% in just 1 year suggest revenue scale is absorbing margin rather than compounding returns.
- News sentiment is positive (5 of 8 articles) and FY26 headlines cite double-digit revenue growth and capacity expansions, yet the stock is 24.3% below its 52-week high and has traded below the 200-DMA — price action diverges from the recent news tone.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days