DCM Ltd. (DCM) AI Stock Analysis

DCM Ltd.

(NSE:DCM)

Select Model

Rating:45Neutral

Price Target:INR 67.00▼(-14.96% Downside)

Action:reiterated

Date:09/06/26

The overall score is heavily pressured by extremely poor valuation and weak technicals. The stock's high P/E multiple is unjustified by its negative core operations, and the price is in a clear downtrend with no positive momentum. While the company's balance sheet is robust with very low debt, this financial stability is overshadowed by the immediate concerns of operational losses and deteriorating cash flows.

Positive Factors

Conservative Balance SheetVery low leverage gives DCM financial flexibility and reduces the burden of interest and refinancing obligations. A sizable equity base also provides greater resilience during operating volatility and preserves capacity to fund investment or absorb weaker periods.

Negative Factors

Weak Core ProfitabilityNegative gross and operating profit indicate that core operations were not generating sustainable earnings in FY2026. Positive net income supported by non-operating items is less dependable, because it may not represent the recurring profitability available from the underlying business.

DCM Ltd. (DCM) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.44B
Dividend Yield: ―
Average Volume (3M): 881
Price to Earnings (P/E): 114.9
Beta (1Y): 1.37
Revenue Growth: 9.05%
EPS Growth: -95.21%
Country: India
Employees: 218
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

DCM Ltd. Business Overview & Revenue Model

Company Description

DCM Limited, along with its affiliated companies, operates primarily within the grey iron casting and real estate development industries, serving both domestic and global markets. The firm is responsible for manufacturing and supplying grey iron cast...

DCM Ltd. Financial Statement Overview

Summary

The balance sheet is a major strength with minimal debt and growing equity, but this is offset by deeply negative operational profitability and a sharp decline in cash flow generation. The overall financial picture is mixed, with stability from the balance sheet but significant operational and cash flow risks.

Income Statement

30Negative

Balance Sheet

85Very Positive

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	717.80M	717.80M	690.40M	672.68M	694.48M	697.73M
Gross Profit	526.30M	717.80M	-11.60M	656.58M	677.72M	11.47M
EBITDA	82.40M	103.00M	105.50M	147.99M	129.01M	410.14M
Net Income	28.80M	28.90M	219.20M	52.05M	23.33M	301.65M
Balance Sheet
Total Assets	1.29B	1.29B	1.25B	1.13B	1.14B	1.17B
Cash, Cash Equivalents and Short-Term Investments	278.00M	278.00M	296.90M	221.90M	110.95M	132.98M
Total Debt	10.40M	10.40M	12.40M	17.20M	5.96M	240.12M
Total Liabilities	826.30M	826.30M	821.90M	925.44M	990.25M	1.05B
Stockholders Equity	466.40M	466.40M	429.20M	207.71M	149.55M	119.38M
Cash Flow
Free Cash Flow	-24.60M	10.00M	97.50M	18.57M	173.43M	112.73M
Operating Cash Flow	-17.50M	17.00M	105.80M	25.80M	177.85M	116.19M
Investing Cash Flow	23.20M	36.70M	-85.20M	-19.51M	-29.09M	7.46M
Financing Cash Flow	-7.00M	-6.20M	-5.70M	-5.70M	-151.39M	-83.53M

DCM Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price78.79

Price Trends

50DMA74.71Positive

100DMA83.46Negative

200DMA81.14Negative

Market Momentum

MACD-0.17Negative

RSI65.05Neutral

STOCH75.98Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DCM, the sentiment is Positive. The current price of 78.79 is above the 20-day moving average (MA) of 70.73, above the 50-day MA of 74.71, and below the 200-day MA of 81.14, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 65.05 is Neutral, neither overbought nor oversold. The STOCH value of 75.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:DCM.

DCM Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:DCM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:ROLEXRINGS	85Outperform	INR 42.71B	3.94	―	―	1.82%	-12.22%
IN:NELCAST	72Outperform	INR 11.49B	28.01	―	0.53%	4.22%	-1.86%
IN:MMFL	62Neutral	INR 23.18B	20.62	―	0.83%	9.58%	2.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:RKFORGE	54Neutral	INR 117.71B	109.83	―	0.15%	25.19%	-38.28%
IN:DCM	45Neutral	INR 1.47B	114.86	―	―	9.05%	-95.21%
IN:SUNCLAY	34Underperform	INR 22.53B	9.00	―	0.43%	-3.88%	―

* General Sector Average

Performance Comparison

IN:DCM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:DCM	DCM Ltd.	78.79	-13.19	-14.34%
IN:MMFL	MM Forgings Limited	480.10	169.66	54.65%
IN:NELCAST	Nelcast Limited	132.10	16.73	14.50%
IN:RKFORGE	Ramkrishna Forgings Ltd	646.15	104.87	19.37%
IN:ROLEXRINGS	Rolex Rings Limited	162.80	40.05	32.63%
IN:SUNCLAY	Sundaram-Clayton Limited	1021.85	-501.30	-32.91%

DCM Ltd. Corporate Events

DCM Limited Opens SEBI-Compliant Special Window for Legacy Share Transfers

Oct 9, 2026

DCM Limited has announced the opening of a special window, in line with a SEBI circular, to facilitate fresh lodgement and re-lodgement of transfer requests for physical securities sold or purchased prior to April 1, 2019. The initiative covers previ...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 06, 2026

DCM Ltd. AI Stock Analysis