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DCM ShriramNSE:DCMSHRIRAM +0.55%73 Return-on-Tangible-Equity is 19.69% as of Mar. 2026, which is 11% above its 10-year median of 17.66. GuruFocus rates NSE:DCMSHRIRAM with a GF Score™ of 73/100 and a GF Value™ of ₹1,247.20 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 552 Conglomerates companies, DCM Shriram ranks better than 65.94% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. DCM Shriram's annualized net income for the quarter that ended in Mar. 2026 was ₹14,797 Mil. DCM Shriram's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹75,149 Mil. Therefore, DCM Shriram's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 19.69%.
The historical rank and industry rank for DCM Shriram's Return-on-Tangible-Equity or its related term are showing as below:
NSE:DCMSHRIRAM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.15 Med: 17.66 Max: 28.46
Current: 11.94
During the past 13 years, DCM Shriram's highest Return-on-Tangible-Equity was 28.46%. The lowest was 7.15%. And the median was 17.66%.
NSE:DCMSHRIRAM's Return-on-Tangible-Equity is ranked better than 65.94% of 552
companies
in the Conglomerates industry
Industry Median: 7.465
vs NSE:DCMSHRIRAM: 11.94
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
DCM Shriram Return-on-Tangible-Equity Related Terms
DCM Shriram Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for DCM Shriram's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:DCMSHRIRAM vs HON, MMM: Return-on-Tangible-Equity Comparison
For the Conglomerates subindustry, DCM Shriram's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
DCM Shriram Return-on-Tangible-Equity vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, DCM Shriram's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where DCM Shriram's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 19.69% mean?
DCM Shriram (NSE:DCMSHRIRAM) has a Return-on-Tangible-Equity of 19.69% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on DCM Shriram and its competitors. This is 11% above median its historical median of 17.66. Over the past decade, DCM Shriram's Return-on-Tangible-Equity has ranged from 7.15 to 28.46. According to the industry distribution chart, DCM Shriram ranks #188 out of 552 companies in the Conglomerates industry, placing it in the top 34.1%.
Is DCM Shriram's Return-on-Tangible-Equity too high?
DCM Shriram's current Return-on-Tangible-Equity of 19.69% is 11% above median its 10-year median of 17.66. Over the past 10 years, this metric has ranged from a low of 7.15 to a high of 28.46. The Conglomerates industry median Return-on-Tangible-Equity is 7.47. DCM Shriram's value of 19.69% is 163.8% above this industry median. Based on the distribution chart, DCM Shriram ranks #188 out of 552 companies in the Conglomerates industry, which is above the industry midpoint. Overall, DCM Shriram has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does DCM Shriram's Return-on-Tangible-Equity compare to HON and MMM?
According to the Conglomerates industry distribution chart, DCM Shriram ranks #188 out of 552 companies for Return-on-Tangible-Equity. This puts DCM Shriram in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.47. DCM Shriram's value of 19.69% is 163.8% above this benchmark. Historically, DCM Shriram's own Return-on-Tangible-Equity has ranged from 7.15 to 28.46 over the past decade. While the company's 10-year median is 17.66 vs. the industry median of 7.47, DCM Shriram has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Conglomerates company?
The median Return-on-Tangible-Equity among Conglomerates companies is 7.47, based on 552 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DCM Shriram's current Return-on-Tangible-Equity of 19.69% is 163.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on DCM Shriram and its competitors. For the Conglomerates industry, the median Return-on-Tangible-Equity is 7.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DCM Shriram's current Return-on-Tangible-Equity is 19.69%, which is 11% above median its own 10-year median of 17.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DCM Shriram stock overvalued right now?
Based on GuruFocus' analysis, DCM Shriram (NSE:DCMSHRIRAM) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,247.20, compared to a current price of ₹1,022.90 — trading 18% below its estimated fair value. The current Return-on-Tangible-Equity is 19.69%, which is 11% above median its 10-year median of 17.66 and 163.8% above the Conglomerates industry median of 7.47. DCM Shriram's overall GF Score™ is 73/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For DCM Shriram (NSE:DCMSHRIRAM), the current Return-on-Tangible-Equity is 19.69% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is DCM Shriram (NSE:DCMSHRIRAM) Overvalued in 2026?
Based on GuruFocus' analysis, DCM Shriram stock appears to be undervalued.
The current stock price of ₹1,022.90 is trading 18% below its estimated GF Value™ of ₹1,247.20.
GuruFocus considers DCM Shriram to be Modestly Undervalued.
Key valuation signals for NSE:DCMSHRIRAM:
Return-on-Tangible-Equity: 19.69% (11% above median its 10-year median of 17.66)
GF Value™: ₹1,247.20 vs. price of ₹1,022.90 (18% below fair value)
Industry Position: 163.8% above the Conglomerates median (#188 of 552)
No single metric tells the full story. See the NSE:DCMSHRIRAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DCM Shriram Ltd is an Indian conglomerate company which comprises of Agri-Rural, Chlor-Vinyl and value-added businesses. The company's business activities include the manufacture of fertilisers and pesticides, basic inorganic chemicals N.E.C and refining sugar. The company produces Urea & SSP fertilisers, sugar, farm inputs such as DAP, caustic soda, chlorine, calcium carbide, PVC resins, PVC compounds, power, and cement. Its Agri-input business produces hybrid seeds, pesticides, Bulk fertilizers, micro-nutrients and other value-added inputs. In addition, company engaged in research, production, processing, extension activities and marketing. The company manages its business in six segments; Fertilisers, Chloro-Vinyl, Shriram Farm solution, Bioseed, Sugar, and others.
73GF Score
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