Last Updated2026-06-02

Market View

₹265.45(▲1.63%)

Reporting PeriodQ4 FY26

DMCCDMCC Forensic Risk Analysis

Name: DMCC Structural Risk Analysis
Creator: Flagium AI
License: https://creativecommons.org/licenses/by-nc-nd/4.0/

Specialty Chemicals

Risk ClassStable

Market CapN/A

Primary DriverEarnings Quality

Flagium AI Risk Score

16 / 100

+5 QoQ

Deteriorating

Sentinel Insight

Financial profile remains stable for now. Weakness is detected in profitability and earnings quality. No immediate concerns are visible. Risk is increasing at a faster pace.

38.0th %ile (Sector)Accel: +3 Qtrs

Updated2026-06-02

Market View

₹265.45▲1.63%

PeriodQ4 FY26

Score Waterfall
Absolute contribution points of each forensic pillar to the final risk score. Derived from: Sector Baseline + Active Penalties - Mitigation Buffers.

Earnings Quality

+15.0 pts

Growth Sustainability

+10.0 pts

Balance Sheet Stress

+8.0 pts

Stability Adjustment

-17.0 pts

Final Composite Risk16 / 100

Investment Risk Thesis

Historical Trend

Current risk score has risen from 10 → 16 over 13 quarters.

Expected Direction

🚨 Escalate

Primary Deterioration Drivers

Inventory Stress
Industrial Margin Stress
Operating Leverage Stress

What to Watch Next Quarter

Inventory turnover
Operating profit margins
Debt growth

Active Risk Objects (7)

CriticalHigh

Inventory Stress

📊 Earnings QualityAnnualActive for 2 Years

More Detail

Impact Weight15/15

MomentumAccelerating

Last SignalQ4 FY2026

Inventory growth (115.8%) significantly outpaced revenue growth (41.5%).

"Stock is piling up in the warehouse. Inventory turnover is slowing down dangerously."

Industrial Margin Stress

📊 Earnings QualityAnnualActive for 4 Years

More Detail

Impact Weight12/15

MomentumPersistent

Last SignalQ4 FY2026

DMCC: EBITDA margin compressed by 2.5 bps YoY and Raw material costs consumed an additional 13.9% of revenue YoY.

"Margins are in freefall. Operating costs are growing significantly faster than revenue."

Profit Collapse

📊 Earnings QualityQuarterlyActive for 1 Qtrs

More Detail

Impact Weight8/15

MomentumDecaying

Last SignalQ1 FY2025

DMCC: Net Profit collapsed by 56.3% from FY2024 Q1 to FY2025 Q1.

"Earnings quality is stabilizing. The reliance on non-operational items is receding."

Operating Leverage Stress

📊 Earnings QualityAnnualActive for 2 Years

More Detail

Impact Weight10/15

MomentumAccelerating

Last SignalQ4 FY2026

Expenses are consistently growing faster than revenues, creating operational pressure.

"Debt levels are creeping up. Monitor for signs of excessive borrowing for non-core activities."

Working Capital Expansion

💧 Liquidity & CoverageAnnualActive for 3 Years

More Detail

Impact Weight10/15

MomentumPersistent

Last SignalQ4 FY2026

Working capital expansion detected: Receivable days increased by -8.6%.

"Early signs of working capital expansion. Receivable or inventory days are creeping up."

Low Interest Coverage

💧 Liquidity & CoverageQuarterlyActive for 4 Qtrs

More Detail

Impact Weight8/15

MomentumDecaying

Last SignalQ1 FY2025

DMCC: Low Interest Coverage Ratio of 1.62x in FY2025 Q1 (Threshold: 2.5x).

"The ability to cover interest is strengthening as earnings improve or debt is retired."

Capex Efficiency Stress

📊 Earnings QualityAnnualActive for 1 Years

More Detail

Impact Weight8/15

MomentumDecaying

Last SignalQ2 FY2024

Aggressive Capex (18.2%) amidst slow revenue growth (-26.4%).

"Earnings quality is stabilizing. The reliance on non-operational items is receding."

Risk Trajectory

Loading Chart

Resilience Matrix

Metric	Value	vs Sector	Signal
Volatility (σ)	4.5	10.68	✅ RESILIENT
Sensitivity (ε_s)	1	1.00	✅ RESILIENT
Escalation Prob.	5%	5%	✅ NEUTRAL
Safety Buffer	+50.0	+46.0	✅ RESILIENT

Forensic Benchmark Context: Specialty Chemicals (n=51 peers)

Correlation Analysis
Visualizing the relationship between stock price movement and structural risk objects.

Loading Chart

Share Price

Risk Score (0-100)

Market Performance

₹265.45(+1.63%)

1M Divergence-6.45%

1 Week-3.4%

1 Month-4.18%

6 Months+1.51%

1 Year-0.12%

2 Year-15.89%

3 Year+10.5%

Sector Average (1M)+2.27%

Sentinel Forensic Assessment

ALGORITHMIC RISK PROFILE • NON-ADVISORY

The structural architecture is currently robust. Capital resilience buffers in earnings quality remain well-maintained against forensic benchmarks. Systematic scans of operational margins and profitability metrics confirm the absence of material structural stress. Strategic vigilance is advised as structural decay is accelerating.

DMCC • MARKET STRUCTURE

Stage 1 — Accumulation

The company is in a foundational phase. Risk metrics are stabilizing as the company builds a base for potential future fundamental improvement.

Stage Transition Prob.9%

Trend QualityEarly Base

Phase Progression

Phase Progression Score40%

Readiness LabelLow (Early Base Consolidation)

Probability of Advancing9%

CoinTree Momentum

Composite Z-Score+0.0212σ

Improving momentum strength

Universe Rank#954 of 2716

Top 35.13% in momentum strength

Timeframe Sparklines

1W-3.4%

1M-4.2%

6M+1.5%

Weinstein Indicators

150 DMA₹256.06

200 DMA₹270.64

150 DMA Slope-0.9085%Declining

Relative Strength+5.62%Leading

Relative Turnover (RTR)1.6379

ParticipationHealthy

PEER COMPARISON

Ranked comparison against sector peers

Risk profile is broadly in line with the Sector Mean (20).

Ticker	Risk Score	Sector %ile	Delta	Flags	Accel	Primary Driver
DMCCDMCC	16	38th	+5	7	+3	Earnings QualityStable
AARTIINDAarti Industries Limited	20	46th	-5	24	+0	Balance Sheet StressWatch
ANURASAnupam Rasayan India Limited	31	78th	+16	29	+2	Balance Sheet StressWatch
ACIArchean Chemical Industries Limited	35	84th	+20	22	+1	Earnings QualityWatch