DCM Shriram Profit Margin vs. EBITDA

DCMSRIND   203.72  3.67  1.77%   
Taking into consideration DCM Shriram's profitability measurements, DCM Shriram Industries may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess DCM Shriram's ability to earn profits and add value for shareholders.
For DCM Shriram profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DCM Shriram to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DCM Shriram Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DCM Shriram's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DCM Shriram Industries over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between DCM Shriram's value and its price as these two are different measures arrived at by different means. Investors typically determine if DCM Shriram is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DCM Shriram's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

DCM Shriram Industries EBITDA vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining DCM Shriram's current stock value. Our valuation model uses many indicators to compare DCM Shriram value to that of its competitors to determine the firm's financial worth.
DCM Shriram Industries is one of the top stocks in profit margin category among its peers. It also is one of the top stocks in ebitda category among its peers totaling about  41,867,423,729  of EBITDA per Profit Margin. At this time, DCM Shriram's EBITDA is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value DCM Shriram by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for DCM Shriram's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

DCM EBITDA vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

DCM Shriram

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.06 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

DCM Shriram

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
2.47 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

DCM EBITDA Comparison

DCM Shriram is currently under evaluation in ebitda category among its peers.

DCM Shriram Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in DCM Shriram, profitability is also one of the essential criteria for including it into their portfolios because, without profit, DCM Shriram will eventually generate negative long term returns. The profitability progress is the general direction of DCM Shriram's change in net profit over the period of time. It can combine multiple indicators of DCM Shriram, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income1.4 B1.1 B
Operating Income5.8 B6.1 B
Income Before Tax1.7 B1.8 B
Total Other Income Expense Net-4.1 B-3.9 B
Net Income1.2 B605.8 M
Income Tax Expense571.9 M600.4 M
Net Interest Income-357.7 M-375.6 M
Interest Income22.4 M44.6 M
Net Income From Continuing Ops1.2 B875.1 M

DCM Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on DCM Shriram. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of DCM Shriram position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the DCM Shriram's important profitability drivers and their relationship over time.

Use DCM Shriram in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if DCM Shriram position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DCM Shriram will appreciate offsetting losses from the drop in the long position's value.

DCM Shriram Pair Trading

DCM Shriram Industries Pair Trading Analysis

The ability to find closely correlated positions to DCM Shriram could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DCM Shriram when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back DCM Shriram - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling DCM Shriram Industries to buy it.
The correlation of DCM Shriram is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as DCM Shriram moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DCM Shriram Industries moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for DCM Shriram can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your DCM Shriram position

In addition to having DCM Shriram in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Communication Services Thematic Idea Now

Communication Services
Communication Services Theme
Companies that provide networking, telecom, and long distance services. The Communication Services theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Communication Services Theme or any other thematic opportunities.
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Other Information on Investing in DCM Stock

To fully project DCM Shriram's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DCM Shriram Industries at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include DCM Shriram's income statement, its balance sheet, and the statement of cash flows.
Potential DCM Shriram investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although DCM Shriram investors may work on each financial statement separately, they are all related. The changes in DCM Shriram's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on DCM Shriram's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.