DCM Shriram Industries Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

DCM Shriram Industries Ltd trades at ₹38.4, in a downtrend and 51 weeks into that stage. That is −14.1% against its own 200-day average. It sits at 3% of a 52-week range of ₹38 to ₹47. On relative strength it has no relative-strength read yet.

Today the stock is in a downtrend — week 51 of stage 4, confirmed. At ₹38.4 it trades −14.1% versus its 200-day average and sits at 3% of its 52-week range (₹38–₹47).

Against the market, two honest reads. Cumulative: over the last 1 months the stock moved −6% while the NIFTY 500 moved −2% — behind the index over the full window. Recent form: no trailing-13-week read yet — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 99th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

DCM Shriram Industries Ltd trades at 8.2× P/E, about the priciest it has ever traded. Its long-run median P/E is 3.5×, measured across 10.0 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 8.2× is about the priciest it has ever traded, against a long-run median of 3.5× measured over 10.0 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Deteriorating Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

DCM Shriram Industries Ltd reads as deteriorating on its fundamental arc. Deteriorating — revenue and profit growth are shrinking (revenue growth −1.2% latest (single-quarter readings) against +9.0% at its 12-quarter best), ROCE holding at 14.0%. The read is built from 9 quarters across 3 curves, on partial evidence.

🚨 Why it matters: falling curves mean every cheap-looking ratio below needs a discount for direction.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

43.3/100 — rank 20 of 20 in Sugar · 48% evidence confidence · provisional, ranked below fully-evidenced peers

DCM Shriram Industries Ltd scores 43.3 out of 100 against the 20 companies it is compared with in Sugar, ranking 20. Fill the missing evidence before acting; the ranking is deliberately pulled toward neutral.

The four contributions add to the total exactly: 12.1 + 15 + 8.4 + 7.8 = 43.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

DCM Shriram Industries Ltd reported ₹527 Cr of revenue in the Sep 25 quarter, −1.2% year on year. Over 10 years it has compounded at 4.7% a year. The last full year, FY25, came in at ₹2,052 Cr. The last four reported quarters add to ₹1,990 Cr.

DCM Shriram Industries Ltd reported ₹527 Cr of revenue in the Sep 25 quarter, −1.2% year on year. Over 10 years it has compounded at 4.7% a year. The last full year, FY25, came in at ₹2,052 Cr. The last four reported quarters add to ₹1,990 Cr.

FY25 revenue came in at ₹2,052 Cr (−1.5% on the year), capping 10 years at 4.7% compound. The latest quarter (Sep 25) printed ₹527 Cr, −1.2% year on year.

Pace check: the last four quarters averaged −3.4% growth against the decade's 4.7% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −3.7% over the last 4 quarters against −5.1%/yr over the last 8 — stabilising; TTM profit −50.0% vs −18.0%/yr — rolling over.

→ Revenue slipped — did margins hold as it scaled? Next: 1.8% this quarter (−6.8 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

DCM Shriram Industries Ltd's operating margin is 1.8% in the Sep 25 quarter, −6.8 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 5.0% to 13.0%. The current quarter is running below every full year in that window.

DCM Shriram Industries Ltd's operating margin is 1.8% in the Sep 25 quarter, −6.8 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 5.0% to 13.0%. The current quarter is running below every full year in that window.

The latest quarter's operating margin is 1.8%, −6.8 pp against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 5.0%–13.0%.

🚨 Why the margin moved: operating margin went −6.8 pp year on year while gross margin went −13.0 pp — the loss came mostly from the gross line: input costs and pricing.

→ Margins slipped — did that reach the bottom line? Next: profit −113.6% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

DCM Shriram Industries Ltd posted a net loss of ₹3.1 Cr in the Sep 25 quarter. Full-year FY25 profit was ₹101 Cr. The 10-year compound rate is 30.6%. That loss is 0.6% of the quarter's revenue. The same quarter a year earlier earned ₹22.9 Cr. 1 of the last 12 reported quarters were loss-making.

DCM Shriram Industries Ltd posted a net loss of ₹3.1 Cr in the Sep 25 quarter. Full-year FY25 profit was ₹101 Cr. The 10-year compound rate is 30.6%. That loss is 0.6% of the quarter's revenue. The same quarter a year earlier earned ₹22.9 Cr. 1 of the last 12 reported quarters were loss-making.

Sep 25 profit was ₹−3.1 Cr, −113.6% year on year. On the full year, FY25 printed ₹101 Cr (−12.2%), and the 10-year compound rate is 30.6%.

🚨 Why profit moved: revenue contributed −1.2% and the margin −6.8 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit −54.4% vs revenue −3.4%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 144% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 144% of DCM Shriram Industries Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY25 that was ₹152 Cr of operating cash against ₹101 Cr of profit. After ₹71.0 Cr of capital spending, ₹81.0 Cr was left as free cash.

FY25: operating cash of ₹152 Cr against reported profit of ₹101 Cr, leaving free cash of ₹81.0 Cr after ₹71.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 144% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 144%: the cash cycle stretched 29 days between FY20 and FY25 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

→ So follow the cash to where it goes. Next: a 190-day cycle and ₹163 Cr of building.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

DCM Shriram Industries Ltd's cash conversion cycle runs 190 days in FY25, up from 161 days in FY20. Capital spending ran ₹163 Cr over the last 3 years. At FY25 sales of ₹2,052 Cr each day of that cycle holds about ₹5.6 Cr, so roughly ₹1,068 Cr sits inside the business at any moment.

FY25: debtors at 43 days, inventory at 236 days — roughly 7.8 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 190 days, looser than FY20's 161.

The full loop: cash goes out to suppliers and production on day 0; stock waits 236 days to sell; customers pay about 43 days after that; and suppliers themselves are paid at 89 days — netting out to the 190-day cycle.

In money terms: at FY25 sales of ₹2,052 Cr, each day of the cycle holds about ₹5.6 Cr — so the 190-day loop keeps roughly ₹1,068 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹163 Cr over the last 3 fiscal years against ₹115 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹3.0 Cr (FY25) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 14% and the ROIC − WACC spread is −6.0 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

DCM Shriram Industries Ltd earns a ROCE of 14% in FY25. That is up from a trough of 9% in FY15. Return on invested capital clears the cost of that capital by −6.0 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 4.9% net margin on 0.89× asset turns.

FY25 ROCE is 14%, recovered from a FY15 trough of 9% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY25): 4.9% net margin × 0.89× asset turns × 2.57× balance-sheet leverage ≈ 11.2% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 6.0% − 12.0% = a −6.0 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.59.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

DCM Shriram Industries Ltd carries ₹534 Cr of borrowings against ₹899 Cr of equity in FY25, a debt-to-equity of 0.59. Operating profit covers the interest bill 6×. Over 5 years borrowings went from ₹613 Cr to ₹534 Cr. Capital spending ran ₹163 Cr across the last 3 of those years.

FY25: borrowings of ₹534 Cr against equity of ₹899 Cr — a debt-to-equity of 0.59. Operating profit covers the interest bill 6×. Over 5 years borrowings went from ₹613 Cr to ₹534 Cr while capital spending ran ₹163 Cr in just the last 3 — the build-out is being paid for out of cash, not debt.

→ Who owns this, and are they adding or leaving? Next: Domestic institutions added 4.9 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 4.9 points of DCM Shriram Industries Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 12.7% of the company. Foreign institutions moved −0.8 points over the same window, to 1.2%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +4.9 points over 8 quarters to 12.7%; Foreign institutions: −0.8 points over 8 quarters to 1.2%; Promoters: +0.0 points over 8 quarters to 50.1%.

Why the register moved: domestic institutions drove it (+4.9 points), absorbed on the other side by foreign institutions (−0.8 points) — steady accumulation by institutions reading the same numbers this page reads.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

DCM Shriram Industries Ltd: the Z-score reads 2.13. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits in the grey band between the two. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 2.13 sits in the grey band — neither clearly safe nor clearly distressed.

The safety line in one sentence: the Z-score reads 2.13.

Frequently asked questions