DIC India (DICIND)
TurnaroundFairStock Score: 39/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹569.25 |
| Market Cap | ₹522.51 Cr |
| P/E Ratio | 27.47 |
| ROCE | 6.43% |
| ROE | 4.18% |
| Dividend Yield | 0.53% |
| Profit Growth | 227.2% |
| Debt/Equity | 0.01 |
| Sales Growth | 25.4% |
| Free Cash Flow | ₹29,10,472.64 Cr |
| Promoter Holding | 71.75% |
| 52-Week Range | ₹450.5 — ₹639.8 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹483.85 |
Strengths
- Near-zero debt: Debt/Equity of 0.01 keeps financial risk low.
- Price-to-book of 1.20 provides a modest asset cushion against book value of ₹449.48.
- High promoter holding of 71.75% aligns controlling shareholders with minority investors.
- Piotroski F-Score of 7/9 indicates improving financial health.
- Latest quarter shows a profitable recovery: ₹6 crore net profit on ₹223 crore sales.
Concerns
- Topline stagnation with sales growth of only 0.98%.
- Weak return ratios: ROE of 4.18% and ROCE of 6.43%.
- Valuation is rich at P/E of 24.82 for a low-growth, low-margin business.
- Reported free cash flow of ₹29.10 lakh crore is implausible versus ₹483 crore market cap, raising data quality questions.
AI Analysis
At ₹539.35, DIC India is a ₹483 crore small-cap in a mature, competitive printing-ink business. My first rule: never trust a single year's percentage. The 196.46% profit growth looks impressive until you see sales growth of only 0.98% and a trailing P/E of 24.82. The latest quarter earned just ₹6 crore on ₹223 crore of sales — a thin net margin, and annualised earnings of roughly ₹24 crore. This is not a growing franchise; it is a low-return business recovering from a depressed base. On the positive side, the balance sheet is almost debt-free with a D/E of 0.01, book value is ₹449.48, and the shares trade at 1.20 times book. That is a modest margin of safety, not a deep one. ROE of 4.18% and ROCE of 6.43% are far below what a quality business should generate. Promoter holding of 71.75% is reassuring, and a Piotroski score of 7/9 suggests recent operational improvement. But I cannot ignore the absurd reported free cash flow of ₹29.10 lakh crore against a ₹483 crore market cap — either the data is wrong or something is amiss, so I will not underwrite based on it. The dividend yield of 0.57% offers little income support. Graham would say you are paying ₹539 for assets worth ₹449 with weak earnings power; Buffett would ask why accept a P/E of 25 for zero topline growth. This is a turnaround to watch, not a compounder to buy. If the quarterly ₹6 crore profit continues and sales growth revives, the stock can re-rate. Without that, the 196% profit jump is an illusion.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer