DMCC Speciality Chemicals Limited
DMCC Speciality Chemicals Limited Fundamental Analysis
DMCC Speciality Chemicals Limited (DMCC.NS) shows moderate financial fundamentals with a PE ratio of 19.95, profit margin of 4.94%, and ROE of 11.58%. The company generates $5.3B in annual revenue with strong year-over-year growth of 32.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze DMCC.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakDMCC.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDMCC.NS trades at attractive valuation levels.
Growth Score
ExcellentDMCC.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentDMCC.NS maintains a strong and stable balance sheet.
Profitability Score
WeakDMCC.NS struggles to sustain strong margins.
Key Financial Metrics
Is DMCC.NS Expensive or Cheap?
P/E Ratio
DMCC.NS trades at 19.95 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DMCC.NS's PEG of -3.23 indicates potential undervaluation.
Price to Book
The market values DMCC Speciality Chemicals Limited at 2.23 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.85 times EBITDA. This is generally considered low.
How Well Does DMCC.NS Make Money?
Net Profit Margin
For every $100 in sales, DMCC Speciality Chemicals Limited keeps $4.94 as profit after all expenses.
Operating Margin
Core operations generate 8.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.58 in profit for every $100 of shareholder equity.
ROA
DMCC Speciality Chemicals Limited generates $6.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
DMCC Speciality Chemicals Limited generates limited operating cash flow of $174.18M, signaling weaker underlying cash strength.
Free Cash Flow
DMCC Speciality Chemicals Limited produces free cash flow of $170.43M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.83 in free cash annually.
FCF Yield
DMCC.NS converts 3.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How DMCC.NS Stacks Against Its Sector Peers
| Metric | DMCC.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.95 | 23.91 | Better (Cheaper) |
| ROE | 11.58% | 887.00% | Weak |
| Net Margin | 4.94% | -114589.00% (disorted) | Weak |
| Debt/Equity | 0.17 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 1.30 | 5.05 | Neutral |
| ROA | 6.98% | -6361.00% (disorted) | Weak |
DMCC.NS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews DMCC Speciality Chemicals Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
129.78%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-31.59%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
40.89%
Industry Style: Cyclical, Commodity, Value
High Growth