₹13.75
+3.93% today
· 30d -1.01%
as of 2026-09-04
Price · Daily Candles
“DRCSYSTEMS sees Q4 net profit surge +32.02%, yet MACD signals weak bearish momentum.”
DRCSYSTEMS posted robust annual revenue growth of +46.08% and net profit growth of +28.17% for FY26. Q4 FY26 continued the trend with net profit up +32.02% YoY to ₹6 Cr on revenues of ₹27 Cr. Despite strong profitability (profit margin 19.75%), the stock has seen a 1-year return of -16.59% and a 3-month decline of -9.96%.
BULL CASE
+Annual revenue witnessed significant growth of +46.08% YoY for FY26, reaching ₹96 Cr.
+Net profit for Q4 FY26 grew +32.02% YoY to ₹6 Cr, indicating strong quarterly performance.
+The company boasts a 3-year revenue CAGR of +47.34% and net profit CAGR of +42.34% (from 2023-03-31).
+Return on Capital Employed (ROCE) stands at 25.0%, and profit margin is a healthy 19.75%.
BEAR CASE
−The stock has registered a -16.59% return over the last year and a -9.96% decline in the past 3 months.
−Promoter holding of 20.63% is relatively low, with public holding at 79.02%.
−Current P/E of 11.58 is lower than sector peers like TCS (16.74) and Infosys (16.05), suggesting a potential lack of market confidence.
−The MACD signal is 'weak bearish', indicating short-term negative momentum for the stock.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-06-30
REVENUE
₹23 Cr
+27.84% YoY
NET PROFIT
₹6 Cr
+27.79% YoY
OPM
30.74%
-4.37pp YoY
EPS
₹0.39
PE 11.58
Intrinsic value · DCF: N/A — ML model predicts severe Δ FCF compression (h1=-43.8%, h2=-46.8%, h3=-48.7% of mktcap), driving projected FCF negative by year 3 despite healthy current FCF. Treating as forecast outlier rather than reporting a misleading ₹0 valuation. Use the Strategy Fit and ML sections instead.
◇ Sector Position
DRCSYSTEMS trades at a PE of 11.58 and has a ROCE of 25.0%, positioning it at a significantly lower valuation but with comparable profitability to peers like TECHM (PE 26.86, ROCE 24.78) and WIPRO (PE 16.19, ROCE 22.08).
PEERPEROCE %
DRCSYSTEMS11.5825.0
+ 2 more peers — sign in to view
ML Forward Growth Predictions 🔒
68
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
UNDERPERFORMER
20
Valuation
CHEAP
75
Growth
STRONG
78
Profitability
HIGH
92
Technicals
NEUTRAL
65
Risk
LOW
80
Key Stats
TTM PE
11.58
P/B
1.67
52W HIGH
₹23.68
OFF HIGH
-41.93%
MKT CAP
₹198 Cr
◉ Active Signals
MACDBullish0.118
RSI(14)Neutral56.48
⧉ Strategy Fit 🔒