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DCM Limited (DCM) Fair Value & Analysis

Industrials · IN · Market cap ₹1.6B (≈ $16.4M) · ISIN INE498A01018

What is DCM Limited really worth?

DL DCM Limited DCM · BSE
Price₹77.00
Fair Value₹26.30
Upside−65.8%
Quality59/100

A solid business, but trading 193% above our fair value of ₹26.30.

As of Aug 20, 2026, the fair value of DCM Limited is ₹26.30 per share against a price of ₹77.00, so the fair value sits 66% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

Strengths

Highly profitable · 37.8% net margin

Risks

!Weak Growth (revenue 5y −48.3 %/yr)
!Moderate debt · negative free cash flow
!Moderate moat 50/100
!Evidence only low, so the estimate is less certain
Evidence: Low Range ₹19.73 – ₹32.88

Fair value as of: Aug 20, 2026

From 10 valuation models · updated 17 days ago

Share price −4.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹32.88). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (59/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

₹141.00 ₹26.05 Fair Value ₹26.30 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range ₹26.05 – ₹141.00 · fair‑value band ₹19.73 – ₹32.88 · the ₹77.00 price screens above the ₹26.30 fair value. Dashed = 300-day average. As of Aug 20, 2026.

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Analysis

DCM Limited (DCM) currently trades at ₹77.00, while our model-based Fair Value estimate is ₹26.30, implying the stock looks roughly 192.7% overvalued today. The Quality Score stands at 59/100 (solid quality), in the Industrials sector. Bull case: the Dividend Discount group reads highest at a median of ₹79.07 per share, and 2 of the 10 models we run sit above the ₹77.00 price. Bear case: the Earnings-Based group reads lowest at ₹12.86, and 8 of the 10 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, DCM Limited generated revenue of ₹692M at a net margin of 37.8%. Revenue grew 6.0% year over year. It earns a return on equity of 75.8%. Net debt stands at ₹150M. Fundamentals as of Aug 20, 2026

Our scenario range runs from ₹19.73 (bear case) to ₹32.88 (bull case); at ₹77.00, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 27% below its 52-week high and 41% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −58% fair-value upside, at −66%, DCM screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ₹9.56 per share, which is 36.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence ₹18.87 ₹19.39 ₹18.79 76
Owner Earnings ₹9.06 ₹16.70 ₹29.52 73
Gordon GGM ₹73.35 ₹79.07 ₹87.58 69
All 10 models by family
DCF Models
Owner Earnings ₹9.06 ₹16.70 ₹29.52 73
Earnings-Based
Graham-Dodd ₹10.52 ₹12.86 ₹14.47 67
Dividend Discount
Gordon GGM ₹73.35 ₹79.07 ₹87.58 69
DDM Multi-Stage ₹73.35 ₹87.32 ₹105.34 67
Multiples
P/E Multiple ₹24.37 ₹32.49 ₹40.62 63
P/S Multiple ₹19.73 ₹26.30 ₹32.88 58
P/B Multiple ₹19.73 ₹26.30 ₹32.88 55
Asset-Based
NCAV (Graham) ₹12.49 ₹16.73 ₹24.97 54
Economic Profit
Residual Income best evidence ₹18.87 ₹19.39 ₹18.79 76
Growth Earnings
Growth-Adj P/E ₹17.21 ₹24.58 ₹31.96 67

Widest divergence: Dividend Discount (₹79.07) versus Earnings-Based (₹12.86). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 5.5
P/S ratio 0.22 P/E × margin
EPS (TTM) ₹14.01 price ÷ EPS = P/E 5.5
Dividend yield 11.4% payout 62.5%
Net margin 4.0% FY2025
Return on equity 75.8% TTM
More key figures
Profitability
Return on assets (EBIT) 5.2% avg 5y
Operating margin −6.5% TTM
Growth
Revenue (TTM) ₹692M TTM
Revenue growth (YoY) +6.0% 3y avg −68.7%
EPS growth (YoY) +105%
Balance sheet & cash flow
Free cash flow −₹25.8M FY2025
Net debt ₹150M FY2021

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 53 · Market factors (momentum, volatility) 39

Profitability 45
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 6
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 67
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

DCM Limited, together with its subsidiaries, provides IT services in India. It operates through Real Estate, Grey Iron Casting, IT Services, and Others segments. The company offers IT infrastructure services, such as networking, analytics, cloud, and digital technologies services.

Full company description

DCM Limited, together with its subsidiaries, provides IT services in India. It operates through Real Estate, Grey Iron Casting, IT Services, and Others segments. The company offers IT infrastructure services, such as networking, analytics, cloud, and digital technologies services. It also manufactures and supplies grey iron castings for the automotive market, such as cars, multi-utility vehicles, tractors, light commercial vehicles, heavy commercial vehicles, and earth moving equipment. In addition, the company develops real estate sites; and is involved in the textile business. The company was formerly known as Delhi Cloth & General Mills Co. Limited and changed its name to DCM Limited in October 1983. DCM Limited was incorporated in 1889 and is based in Delhi, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

DCM Limited reported revenue of ₹718M in FY2025 versus ₹21.2B in FY2021, a compound −57.1%/yr. Reported net income was ₹28.9M in FY2025, compounding −54.3%/yr from FY2021.

Growth Quality 24/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
₹718M
Latest YoY
−96.5%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−68.7%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−48.3%
Avg. revenue growth/yr (9Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−29.0%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−15.9% · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share−27.3%
Dividend yield11.4%
Trend Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y −27.3% vs 10Y −19.8%, flattening
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.11.2% (2016) → −3.4% (2025) · falling
Worst earnings drop88% (2025) · in INR
Revenue −57.1%/yr
FY21 ₹21.2B
FY22 ₹23.5B
FY23 ₹20.8B
FY24 ₹20.5B
FY25 ₹718M
Net income −54.3%/yr
FY21 ₹662M
FY22 ₹602M
FY23 ₹1.2B
FY24 ₹1.0B
FY25 ₹28.9M

DCM screens 193% overvalued. Compare with Carpenter Technology Corporation →

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Cite: Fair Value Calculator (2026). "DCM Limited Fair Value". https://www.fairvalue-calculator.com/stock/DCM.BSE

Peer Group

Metal Fabrication · 249 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 59 · Top 25%
Fair Value upside −66% · Bottom 25%
Return on equity (TTM) 76% · Top 25%
Return on assets −1% · Bottom 25%
Net margin (TTM) 38% · Top 25%
Operating margin (TTM) −6% · Bottom 25%
Revenue growth 6% · Below median
Dividend yield (TTM) 11.4% · Top 25%
Debt / equity 0.95× · Higher than 75% of peers

Valuation Multiples vs Metal Fabrication median · lower = cheaper

P/E (TTM) 5.5× · Cheaper than 75% of peers
P/B 3.32× · Pricier than 75% of peers
P/S (TTM) 2.24× · Pricier than median
EV/EBITDA 96.8× · Pricier than 75% of peers

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Metal Fabrication stocks, each showing price versus our Fair Value estimate (as of Aug 20, 2026).

Stock Price Fair Value vs Fair Value
Carpenter Technology Corporation CRS $490.58 $101.35 −79%
ATI Inc ATI $210.76 $35.74 −83%
Mueller Industries, Inc MLI $62.80 $59.33 −6%
Aurubis AG NDA €178.90 €223.43 +25%
China International Marine Containers (Group) Co 000039 ¥9.39 ¥3.39 −64%
Commercial Metals Company CMC $68.16 $13.01 −81%
JL Mag Rare-Earth Co 300748 ¥27.08 ¥8.34 −69%
Viohalco S.A VIO €16.46 €14.98 −9%
ESAB Corporation ESAB $86.05 $52.40 −39%
Ningbo Zhenyu Technology Co 300953 ¥104.36 ¥44.23 −58%

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Frequently asked questions

Is DCM Limited (DCM) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of ₹26.30 versus a price of ₹77.00, about −66% upside (overvalued).
What is the fair value of DCM?
Our model-based fair value for DCM Limited is ₹26.30 (as of Aug 20, 2026), built from audited fundamentals. The current price: ₹77.00.
What is the quality score of DCM?
DCM Limited has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for DCM Limited (DCM)?
Our model-based price target is the fair value of ₹26.30 (as of Aug 20, 2026) from 10 valuation models. Cautious scenario ₹19.73, optimistic scenario ₹32.88. It is a calculation from audited fundamentals, not an analyst target.
What is the DCM Limited stock forecast for 2026?
Our models put fair value at ₹26.30, about −66% upside versus a price of ₹77.00 (overvalued). Cautious scenario ₹19.73, optimistic scenario ₹32.88. The calculation is refreshed regularly with new filings.
What is the revenue of DCM Limited (DCM)?
DCM Limited reported trailing-twelve-month revenue of about ₹692M (latest available figure, as of Aug 20, 2026).
What is the net profit margin of DCM?
The net profit margin of DCM Limited is about 37.8%, meaning it keeps roughly 37.8% of revenue as net income. Based on the latest reported figures.
Does DCM Limited pay a dividend?
DCM Limited currently shows a dividend yield of about 11.38% relative to its recent price (as of Aug 20, 2026).
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