DCM Shriram Limited (DCMSHRIRAM.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-65.3%

₹310.81

vs ₹895.75 price

Levered DCF

-₹158.00

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.9

Grey zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	20.43×	27.01×	30.97×	12.8×	16.51×	11.61×	4.68×	7.2×
P/B	2.26×	2.33×	2.12×	1.88×	3.2×	1.68×	0.83×	1.85×
P/S	1.29×	1.35×	1.27×	1.01×	1.83×	0.94×	0.43×	0.84×
EV / EBITDA	11.68×	13.8×	15.82×	8.03×	10.22×	7.4×	4.19×	5.63×
Gross margin	21.5%	32.5%	30.0%	31.8%	36.9%	33.7%	49.7%	51.6%
Operating margin	7.3%	23.1%	20.4%	23.5%	28.2%	24.3%	39.6%	42.5%
Net margin	6.3%	5.0%	4.1%	7.9%	11.1%	8.1%	9.2%	11.7%
Current ratio	1.49×	1.58×	1.62×	1.84×	2.18×	2.29×	1.61×	1.59×
Debt / equity	0.38×	0.36×	0.33×	0.28×	0.29×	0.33×	0.56×	0.46×
Interest coverage	5.66×	18.85×	30.22×	55.09×	40.31×	19.69×	21.11×	32.25×
Dividend yield	0.9%	0.8%	0.9%	2.0%	1.2%	1.1%	5.5%	2.2%
Payout ratio	19.4%	21.2%	26.5%	26.2%	19.9%	12.7%	25.7%	15.5%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	11.1%	8.6%	6.9%	14.7%	19.4%	14.5%	17.7%	25.7%
Return on invested capital	7.4%	17.6%	15.0%	20.2%	24.4%	23.7%	37.4%	46.9%
Return on assets	6.0%	4.7%	3.9%	8.5%	11.4%	8.6%	8.8%	12.7%
Free cash flow yield	1.4%	1.7%	-3.7%	-4.4%	2.6%	20.9%	-3.2%	-1.2%
Earnings yield	4.9%	3.7%	3.2%	7.8%	6.1%	8.6%	21.4%	13.9%
Enterprise value	₹195B	₹186.6B	₹156.6B	₹129.1B	₹182.7B	₹84.7B	₹50.9B	₹77.5B
Net debt / EBITDA	1.24×	1.73×	1.83×	0.78×	0.36×	0.57×	1.43×	0.89×
Cash conversion cycle (days)	94	108	108	98	115	111	117	137