Textile · Founded 2016 · www.dcmnvl.com · BSE 542729 · NSE DCMNVL · ISIN INE08KP01019
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1. Business Overview
DCM Nouvelle Ltd. is primarily engaged in the manufacturing and sale of cotton yarns. The company produces a wide range of spun yarns, including various counts and blends, catering to both knitting and weaving segments. Its core business model involves procuring raw cotton, processing it into yarn at its manufacturing facilities, and then selling these yarns to domestic and international fabric manufacturers, knitters, and weavers. The company generates revenue through the sale of these cotton yarns.
2. Key Segments / Revenue Mix
The company operates predominantly in a single business segment: textile manufacturing, specifically cotton yarn spinning. While exact revenue breakdowns for different yarn types (e.g., combed, carded, specific counts) are not typically published as separate segments, the primary contribution comes from the production and sale of various types of cotton yarn to industrial customers.
3. Industry & Positioning
The Indian textile industry is vast, highly fragmented, and globally competitive. It encompasses spinning, weaving, processing, and garment manufacturing. DCM Nouvelle operates in the spinning segment, which is characterized by high capital intensity and susceptibility to raw material price fluctuations. Within this segment, DCM Nouvelle positions itself as a quality manufacturer and exporter of cotton yarns, serving both the domestic market and international customers. It competes with numerous other domestic and international yarn manufacturers.
4. Competitive Advantage (Moat)
DCM Nouvelle's competitive advantages are primarily derived from its established operational scale in cotton yarn manufacturing, which can lead to cost efficiencies and economies of scale. Its long-standing presence in the industry helps build enduring relationships with both raw material suppliers and customers. Focus on quality and a diverse product range of yarns can also contribute to customer stickiness in a B2B context. However, the spinning industry generally faces intense competition, making a strong, durable moat challenging to establish beyond operational excellence and established market channels.
5. Growth Drivers
Increasing Domestic Textile Demand: Growth in India's population and disposable incomes are expected to drive consumption of textiles and apparel.
Export Opportunities: India's competitive positioning in textiles, supported by government initiatives, can lead to increased demand for Indian yarns in international markets.
Capacity Expansion/Modernization: Strategic investments in expanding manufacturing capacity or upgrading technology can enhance output and efficiency.
Government Initiatives: Schemes like the Production Linked Incentive (PLI) scheme for textiles can incentivize investment and growth in the sector.
6. Risks
Raw Material Price Volatility: Cotton prices are highly susceptible to weather conditions, global supply-demand dynamics, and government policies, directly impacting profitability.
Global Economic Slowdown: A downturn in major global economies can reduce demand for textiles and yarn, affecting export volumes and pricing.
Currency Fluctuations: As an exporter, the company is exposed to foreign exchange rate volatility, which can impact realization from sales.
Intense Competition: The spinning industry is competitive, leading to pricing pressures and potential erosion of margins.
Regulatory & Environmental Risks: Changes in textile import/export policies, labor laws, or environmental regulations could impact operations and costs.
7. Management & Ownership
DCM Nouvelle Ltd. is part of the DCM Group, a business house with a long history in India. The company is promoter-driven, implying active involvement of the founding family or their representatives in strategic decision-making and day-to-day operations. Promoter shareholding typically represents a significant portion of the company's equity, indicating alignment of interests between management and key shareholders. The management team would comprise professionals overseeing various functional areas within the company.
8. Outlook
DCM Nouvelle operates in a cyclical yet growing industry driven by domestic consumption and export potential. The company's focus on quality cotton yarn manufacturing and established market presence provides a foundation for stability. However, its performance remains significantly influenced by external factors such as raw material prices, global economic conditions, and intense competition in the textile value chain. While potential government support for the textile sector and growing demand could be tailwinds, the inherent volatility of commodity prices and currency movements presents ongoing challenges.
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| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 267 | 264 | 269 | 260 | 266 | 281 | 253 | 239 | 273 | 263 |
| Other Income | 1 | 1 | 2 | 1 | 1 | 2 | 1 | 1 | 1 | 0 |
| Total Income | 268 | 266 | 271 | 261 | 267 | 284 | 253 | 240 | 273 | 263 |
| Total Expenditure | 259 | 245 | 252 | 247 | 256 | 263 | 237 | 230 | 260 | 245 |
| Operating Profit | 9 | 20 | 19 | 14 | 11 | 21 | 17 | 10 | 13 | 18 |
| Interest | 6 | 7 | 8 | 7 | 5 | 6 | 5 | 4 | 4 | 5 |
| Depreciation | 6 | 6 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 |
| Exceptional Income / Expenses | 0 | 0 | -6 | 11 | 0 | 0 | 0 | 0 | -2 | -0 |
| Profit Before Tax | -3 | 7 | -3 | 11 | -2 | 8 | 4 | -2 | -1 | 6 |
| Provision for Tax | -0 | 2 | 1 | 4 | 1 | 2 | 2 | 0 | 1 | 2 |
| Profit After Tax | -3 | 5 | -3 | 7 | -3 | 5 | 2 | -2 | -2 | 4 |
| Adjustments | 0 | 0 | 1 | 1 | 1 | 0 | 1 | 0 | 0 | 0 |
| Profit After Adjustments | -3 | 5 | -3 | 8 | -2 | 6 | 2 | -2 | -1 | 4 |
| Adjusted Earnings Per Share | -1.3 | 2.6 | -1.4 | 4.1 | -0.9 | 3 | 1.2 | -1 | -0.6 | 2.4 |
| #(Fig in Cr.) | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|
| Net Sales | 909 | 864 | 1081 | 1076 | 1028 |
| Other Income | 8 | 6 | 7 | 6 | 3 |
| Total Income | 918 | 870 | 1088 | 1082 | 1029 |
| Total Expenditure | 735 | 833 | 1042 | 1017 | 972 |
| Operating Profit | 183 | 37 | 45 | 64 | 58 |
| Interest | 6 | 6 | 25 | 26 | 18 |
| Depreciation | 12 | 10 | 23 | 29 | 28 |
| Exceptional Income / Expenses | 0 | -3 | 0 | 5 | -2 |
| Profit Before Tax | 164 | 18 | -3 | 14 | 7 |
| Provision for Tax | 42 | 7 | 1 | 8 | 5 |
| Profit After Tax | 123 | 12 | -4 | 6 | 2 |
| Adjustments | 0 | 1 | 1 | 3 | 1 |
| Profit After Adjustments | 123 | 12 | -3 | 9 | 3 |
| Adjusted Earnings Per Share | 65.6 | 6.6 | -1.7 | 4.8 | 2 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -0% | 6% | 0% | 0% |
| Operating Profit CAGR | 42% | -30% | 0% | 0% |
| PAT CAGR | 0% | -63% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -11% | 2% | 5% | NA% |
| ROE Average | 2% | 1% | 11% | 11% |
| ROCE Average | 6% | 5% | 13% | 13% |
| #(Fig in Cr.) | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Shareholder's Funds | 306 | 319 | 316 | 325 |
| Minority's Interest | 0 | 7 | 9 | 7 |
| Borrowings | 29 | 98 | 83 | 73 |
| Other Non-Current Liabilities | 45 | 11 | 11 | 16 |
| Total Current Liabilities | 163 | 213 | 345 | 327 |
| Total Liabilities | 543 | 647 | 763 | 747 |
| Fixed Assets | 124 | 276 | 324 | 302 |
| Other Non-Current Assets | 86 | 37 | 24 | 15 |
| Total Current Assets | 333 | 315 | 415 | 430 |
| Total Assets | 543 | 647 | 763 | 747 |
| #(Fig in Cr.) | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 0 | 4 | 5 | 1 |
| Cash Flow from Operating Activities | 87 | 48 | -46 | 66 |
| Cash Flow from Investing Activities | -67 | -149 | -40 | -7 |
| Cash Flow from Financing Activities | -16 | 102 | 82 | -59 |
| Net Cash Inflow / Outflow | 4 | 1 | -4 | 0 |
| Closing Cash & Cash Equivalent | 4 | 5 | 1 | 1 |
| # | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Earnings Per Share (Rs) | 65.64 | 6.58 | -1.75 | 4.77 |
| CEPS(Rs) | 72.26 | 11.61 | 10.18 | 18.75 |
| DPS(Rs) | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 164.08 | 170.73 | 168.94 | 173.77 |
| Core EBITDA Margin(%) | 19.17 | 3.65 | 3.57 | 5.45 |
| EBIT Margin(%) | 18.73 | 2.83 | 2.05 | 3.73 |
| Pre Tax Margin(%) | 18.05 | 2.11 | -0.28 | 1.28 |
| PAT Margin (%) | 13.48 | 1.35 | -0.38 | 0.56 |
| Cash Profit Margin (%) | 14.84 | 2.51 | 1.76 | 3.26 |
| ROA(%) | 22.57 | 1.96 | -0.58 | 0.8 |
| ROE(%) | 40 | 3.73 | -1.29 | 1.88 |
| ROCE(%) | 36.83 | 4.68 | 3.49 | 5.94 |
| Receivable days | 33.06 | 29.84 | 29.31 | 37.33 |
| Inventory Days | 88.48 | 94.69 | 83.13 | 91.83 |
| Payable days | 7.35 | 8.33 | 10.32 | 12.53 |
| PER(x) | 3.57 | 20.52 | 0 | 31.11 |
| Price/Book(x) | 1.43 | 0.79 | 1.13 | 0.85 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.65 | 0.59 | 0.67 | 0.57 |
| EV/Core EBITDA(x) | 3.22 | 13.67 | 16.07 | 9.52 |
| Net Sales Growth(%) | 0 | -4.94 | 25.05 | -0.47 |
| EBIT Growth(%) | 0 | -85.64 | -9.47 | 81.13 |
| PAT Growth(%) | 0 | -90.49 | -135.13 | 246.96 |
| EPS Growth(%) | 0 | -89.98 | -126.56 | 372.99 |
| Debt/Equity(x) | 0.51 | 0.83 | 1.18 | 1.04 |
| Current Ratio(x) | 2.04 | 1.48 | 1.2 | 1.31 |
| Quick Ratio(x) | 0.69 | 0.41 | 0.44 | 0.47 |
| Interest Cover(x) | 27.59 | 3.93 | 0.88 | 1.52 |
| Total Debt/Mcap(x) | 0.36 | 1.05 | 1.04 | 1.22 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 50.11 | 50.11 | 50.11 | 50.11 | 50.11 | 50.11 | 50.11 | 50.11 | 50.11 | 50.11 |
| FII | 0.5 | 0.52 | 0.46 | 0.34 | 0.45 | 0.82 | 0.83 | 0.56 | 0.61 | 0.55 |
| DII | 1.97 | 1.97 | 2.08 | 1.88 | 1.88 | 1.65 | 1.65 | 1.65 | 1.65 | 1.57 |
| Public | 47.42 | 47.4 | 47.34 | 47.67 | 47.56 | 47.43 | 47.41 | 47.69 | 47.64 | 47.77 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 |
| FII | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.01 | 0.01 | 0.01 |
| DII | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Public | 0.89 | 0.89 | 0.88 | 0.89 | 0.89 | 0.89 | 0.89 | 0.89 | 0.89 | 0.89 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.87 | 1.87 | 1.87 | 1.87 | 1.87 | 1.87 | 1.87 | 1.87 | 1.87 | 1.87 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 0% | +6% | — | — |
| Operating Profit CAGR | +42% | -30% | — | — |
| PAT CAGR | — | -63% | — | — |
| Share Price CAGR | -11% | +2% | +5% | — |
| ROE Average | +2% | +1% | +11% | +11% |
| ROCE Average | +6% | +5% | +13% | +13% |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 50.11 | 50.11 | 50.11 | 50.11 | 50.11 | 50.11 | 50.11 | 50.11 | 50.11 | 50.11 |
| FII | 0.5 | 0.52 | 0.46 | 0.34 | 0.45 | 0.82 | 0.83 | 0.56 | 0.61 | 0.55 |
| DII | 1.97 | 1.97 | 2.08 | 1.88 | 1.88 | 1.65 | 1.65 | 1.65 | 1.65 | 1.57 |
| Public | 49.89 | 49.89 | 49.89 | 49.89 | 49.89 | 49.89 | 49.89 | 49.89 | 49.89 | 49.89 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 |
| FII | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.01 | 0.01 | 0.01 |
| DII | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Public | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.87 | 1.87 | 1.87 | 1.87 | 1.87 | 1.87 | 1.87 | 1.87 | 1.87 | 1.87 |
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