DCM Shriram International Limited

Industrials — Industrial Distribution · NSE

₹73.53−₹1.30 (−1.74%)

DalalBaazaar Score

31 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

The 60-second version of DCM Shriram International Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

DCM Shriram International Limited engages in the manufacturing and sales of industrial fiber in India. The company offers Rayons, such as yarn, tyre cord, and treated rayon fabric.

IndustryIndustrial Distribution

SectorIndustrials

Employees1,037

Annual revenue₹440 Cr

How does it make money?

Turns over ₹440 Cr a year. Of every ₹100 of sales, about ₹-3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 1,037 employees supports ₹42.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹42.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -1.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 1 years revenue moved -21% while net margin moved -128% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-21%

Margin effect-128%

DalalBaazaar Score

31/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 21.1% a year
✗ Profit fell 99.1% in the latest year

Quality vs. Valuation

Company Quality

33/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

31/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

24.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 22% over 1 years.
Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 16.3% to -3.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.3% to -1.3% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -1.2x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹14 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 11.8 points, from 18.5% to 6.7%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 20.3x to -1.2x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹17 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 18.5% to 6.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 16.3% to -3.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 5%✓ 6.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ -1.2x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹17 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ -1.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹640 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

1.71x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-1.95

Loss-making

Negative earnings per share — the business is losing money

ROE

-3.7%

Weak

Weak capital efficiency

ROCE

-1.3%

Weak

Low return on total capital employed

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

-4.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-99.1%

Falling

Profits are shrinking

Dividend Yield

0.54%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹17 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.6%

Weak

Thin margins leave little room for error

Net Margin

-3.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.99

Comfortable

Healthy short-term liquidity

52W Range Position

43%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

76.9 / 75.6

Bullish alignment (short > long)

RSI (14)

30.9

Neutral momentum

Financial Trend (2-Year)

Metric	FY25	FY26	1Y CAGR
Revenue	₹558 Cr	₹440 Cr	-21.1%
EBITDA	₹103 Cr	₹29 Cr	-71.5%
EBITDA Margin	18.5%	6.7%	—
PAT (Net Profit)	₹63 Cr	-₹14 Cr	—
EPS	₹7.25	₹-1.58	—
ROE	16.3%	-3.7%	—
ROCE	20.3%	-1.3%	—
Total Debt	₹79 Cr	₹74 Cr	-5.9%
Free Cash Flow	₹14 Cr	₹17 Cr	+22.3%

🔴 Revenue has shrunk at 21.1% a year over 1 years.

🔴 EBITDA has shrunk at 71.5% a year over 1 years.

🔴 EBITDA Margin has fallen from 18.5% to 6.7% over 1 years (-11.8 pts).

🔴 PAT (Net Profit) has turned negative, from ₹63 Cr to -₹14 Cr.

🔴 EPS has turned negative, from ₹7.25 to ₹-1.58.

🔴 ROE has fallen from 16.3% to -3.7% over 1 years (-19.9 pts).

🔴 ROCE has fallen from 20.3% to -1.3% over 1 years (-21.6 pts).

🟢 Total Debt has shrunk at 5.9% a year over 1 years.

🟢 Free Cash Flow has grown at 22.3% a year over 1 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹586 Cr

Total Liabilities

₹213 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹39 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

7.9%

Insider Holding

53.7%

Corporate Actions

Dividend Rate

₹0.4

Ex-Dividend Date

06 Jul 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed1 negative4 general

Compare VARDHMAN POL with

Equitymaster, 14 Oct

DCM Shriram International (DCMSIL) Share Price rises 8.14% today

Univest, 30 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

DCM Shriram International fined ₹96,760 for delayed regulatory compliance

scanx.trade, 26 AugRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

DCMSIL Stock Price and Chart — NSE:DCMSIL

TradingView, 17 Feb

DCM Shriram International Ltd. Share Price Live Today

CNBC TV18, 17 Feb

DCM Shriram International Ltd. Share Price: 8.19% Gain Today

Univest, 19 Aug

Watch Items

Revenue growth is negative (-4.9%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑