DCM Shriram (DCMSHRIRAM)

FairStock Score: 61/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-Graham investor, I ask first whether DCM Shriram is a business I understand and can buy with a margin of safety. It is a diversified Indian company with ₹15,868 Cr market cap, promoter holding 66.53%, debt/equity 0.38, positive FCF ₹278 Cr, and Piotroski 7/9. Those are respectable signs: promoters have skin in the game, leverage is moderate, and accounting quality looks decent. ROCE of 11.37% and ROE of 9.46%, however, tell me it is not a high-return compounder. Sales growth 9.44% and five-year revenue CAGR 9.23% suggest steady, not explosive, top-line progress. Latest quarter sales ₹3,811 Cr and net profit ₹213 Cr are healthy, while the reported profit growth of 635.48% likely reflects a low base and may not repeat. Valuation is the rub. At ₹1,024.70, P/E 11.15 and P/B 2.12 look undemanding at first glance, but Graham Number is only ₹655.36, leaving a margin of safety of -58.26%. I am paying well above asset-based intrinsic value. DCF intrinsic value of ₹117.62 and EV/EBITDA of 84.03 are red flags; PEG 2.11 also says growth is not cheap. FairStock score 61/100, STEADY, fits a stalwart more than a bargain. Dividend yield 1.42% is modest. So I would watch, not rush. A durable moat is not evident from these numbers; returns are average and cash generation positive but not abundant. For an Indian retail investor, DCM Shriram may suit a patient, diversified portfolio only if bought near the lower end of its 52-week range, with monitoring of ROCE, FCF, debt, and whether profit growth normalizes.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer