DRMA Shares Have 49% Upside Potential: Sucor Sekuritas
Main Takeaways
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JAKARTA, investortrust.id – Shares of PT Dharma Polimetal Tbk, or DRMA, could rise by as much as 49% from current levels, according to Sucor Sekuritas, which named the auto parts manufacturer a top equity pick following a resilient first-quarter performance in a challenging automotive landscape.
Despite industry headwinds, DRMA has managed to sustain profitability through prudent operations and a flexible business approach, supported by a healthy balance sheet. Sucor has maintained a "buy" recommendation on the stock with a target price of Rp 1,500. With DRMA closing at Rp 1,005 last Friday, this implies an upside potential of over 49%.
“We continue to favor DRMA supported by three key strengths: profitability, adaptability, and a solid financial structure that enables future acquisitions,” wrote Christofer Kojongian, analyst at Sucor Sekuritas, in a research note released last week.
First-Quarter Results on Track
DRMA posted a 9% increase in revenue to Rp 1.46 trillion in the first quarter of 2025, up from Rp 1.33 trillion in the same period last year. While EBITDA dropped 48% to Rp 115 billion from Rp 220 billion, net profit still rose 7% year-on-year, from Rp 133 billion to Rp 143 billion.
This was achieved despite a dip in profitability margins. Gross margin slipped from 18.5% to 17.4%, while net margin edged down from 10% to 9.8%. Nevertheless, the company’s earnings remained in line with both Sucor’s and market consensus expectations.
For full-year 2025, Sucor projects DRMA’s revenue to grow 7% to Rp 5.9 trillion and net profit to reach Rp 616 billion.
Sales Growth Driven by Two-Wheeler Components
According to Sucor, DRMA's 2025 growth will be primarily driven by rising demand for motorcycle components, which are expected to contribute around 61% of total revenue. Meanwhile, automotive components for cars are projected to account for 25%.
The company recently held its annual general meeting of shareholders in Cikarang on Tuesday, Apr. 22, 2025, where it approved a cash dividend payout of Rp 202.3 billion for the 2024 fiscal year.