🧠 At a Glance
India’s OG chemical company (born in 1919!) DMCC Speciality is having a reverse retirement moment. After decades of boring profits and mid-tier margins, it’s suddenly flexing ethanol, boron, and sulphur muscles — and even installing solar power. Revenues jumped to ₹431 Cr in FY25 and the profit finally showed up to the party with ₹22 Cr. But is this a blip or a full-blown second innings?
1. 🧬 WTF Do They Even Do?
DMCC Speciality Chemicals Ltd used to be your grandfather’s fertilizer company. Literally — it was India’s first producer of sulphuric acid and phosphate fertilizers. Today?
🎯 It’s a fully integrated specialty chemical player across:
- Sulphur chemistry (Think: acid rain, but legal and profitable)
- Boron chemistry (used in glass, semiconductors, and nuclear fusion — casual)
- Ethanol derivatives (flavourings, pharma solvents, or your next party fuel)
And if that wasn’t niche enough, they’re also installing solar power to cut costs. Your neighbourhood RWA committee should take notes.
2. 💸 Financials: From Meh to Mmm
Let’s see if the old man still has it in him 👇
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM % | ROCE % | ROE % | EPS (₹) |
|---|---|---|---|---|---|---|
| FY21 | 200 | 33 | 18% | 19% | 13.1% | 13.06 |
| FY22 | 326 | 21 | 12% | 16% | 8.6% | 8.56 |
| FY23 | 387 | 7 | 9% | 7% | 2.8% | 2.75 |
| FY24 | 328 | 12 | 11% | 8% | 4.6% | 4.64 |
| FY25 | 431 | 22 | 13% | 15% | 8.6% | 8.64 |
📈 Verdict: Profit is rising, margins are recovering, and EPS has doubled from FY24 to FY25. Grandpa’s lifting weights again.
3. 🤯 Valuation: Is It Cheap or Just… Old?
- CMP: ₹258
- Market Cap: ₹644 Cr
- P/E (TTM): ~30x
- Book Value: ₹91
- P/B: 2.83x
- Dividend Yield: 0.39%
So basically:
Valuation = “I’m not cheap, but I might deserve it now.”
The industry average for specialty chemical players is still 40–60x P/E (Pidilite = 74x!), but DMCC is no Pidilite… yet.
4. 🔥 What’s Cooking?
Here’s what’s making analysts look up from their Excel sheets:
- ✅ Entered into a Solar PPA with AMPYR to cut power costs
- ✅ 25% dividend declared (flexing old money habits)
- ✅ Q4FY25 net profit up 11.9% YoY – finally out of the ICU
- ❌ Past few years had fluctuating margins & profits
And let’s not forget: They’ve been public since before Nehru was PM.
5. 🧾 Balance Sheet: Debt Khatam, Respect Bhi?
- Borrowings down from ₹101 Cr (FY23) to ₹47 Cr (FY25) ✅
- Reserves: ₹202 Cr
- Fixed Assets stable at ₹234 Cr
- CWIP (Capex) is now zero — they’ve built what they needed
🔋 Low capex means no more excuses. Next few years must deliver profit from existing infra.
6. 💵 Cash Flow – Sab Number Game Hai
| FY | CFO (₹ Cr) | FCF (Est.) | Net Cash Flow |
|---|---|---|---|
| 2023 | ₹30 Cr | ~₹20 Cr | -₹1 Cr |
| 2024 | ₹38 Cr | ~₹28 Cr | +₹1 Cr |
| 2025 | ₹38 Cr | ~₹31 Cr | +₹2 Cr |
DMCC has become boringly cash-flow positive — and that’s a good thing. Especially when you’ve been through 100 years of economic drama.
7. 📊 Ratios – Sexy or Stressy?
- ROCE: Back up to 15% ✅
- ROE: Recovered to 9% ✅
- Inventory Days: Down from 81 to 58 ✅
- Cash Conversion Cycle: Still slightly up at 37 days
They’ve tightened working capital, but it’s not yet a Finfluencer-style DCF dream.
8. 🧾 P&L Breakdown
- Q4FY25 Sales: ₹125 Cr
- Net Profit: ₹6.47 Cr
- OPM: ~12%
- EPS (quarter): ₹2.59
It’s not yet a monster quarter, but it’s consistently trending upward. And that’s what the market loves.
9. 🧑🤝🧑 Peer Comparison – The Specialty Slogfest
| Company | P/E | ROCE | OPM % | Market Cap |
|---|---|---|---|---|
| DMCC | 30x | 15% | 13% | ₹644 Cr |
| Pidilite | 74x | 30%+ | 23%+ | ₹1.56 L Cr |
| Deepak Nitrite | 39x | 17% | 13% | ₹27,209 Cr |
| Navin Fluorine | 83x | 11% | 22% | ₹24,185 Cr |
🧐 DMCC is small but cheaper. Margins & return ratios are decent but need to scale.
10. 🧩 Misc: Promoter Holding & Secrets
- Promoter Holding: 53.84% (no change in years)
- FII Holding: Rising slowly – now 0.32%
- Public Holding: 44.61% (massive retail army)
- No pledges, no drama — just old school conservatism
But also… no growth capex announced recently. So the question is — what next?
💰 Fair Value Range™
Let’s math this out:
- EPS (TTM): ₹8.64
- Fair P/E range: 22x – 28x
- 🎯 FV Range = ₹190 to ₹240
Current Price: ₹258
So… uh, we might already be on the premium train.
Unless earnings grow another 30%, this P/E is pricing in a clean, fast turnaround.
🧠 EduInvesting Verdict™
🧓 DMCC is the 106-year-old uncle who just joined yoga, installed solar panels, and started talking about boron chemistry at family dinners.
✅ Debt down
✅ Profits up
✅ Margins stable
❓ Valuation toppy
❓ Growth capex missing
This is not a rocketship, but it’s no longer dead weight either. Keep one eye on the ethanol and solar plays — the next phase could be spicier than it looks.
✍️ Written by Prashant | 📅 July 3, 2025
Tags: DMCC Speciality, Specialty Chemicals, Boron, Ethanol, Sulphur, 5-Year Recap, EduInvesting, Smallcap Stocks, Solar PPA, Chemical Sector, India
