Shares of this mid-cap stock jumped approximately 9 percent during the last trading hours on Thursday after the company signed a Memorandum of Understanding (MoU) with the Government of Gujarat to invest Rs 12,000 crores by 2028.
With a market capitalization of Rs 17,732.98 crores, the stocks of DCM Shriram Limited started their trading session on Thursday at Rs 1,040 and jumped nearly 9.50 percent to Rs 1,137.15 at the fag end of the trading session.
Such a sudden spike in the stock price was observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has signed a Memorandum of Understanding (MoU) with the Government of Gujarat to invest Rs 12,000 crores.
The MoU has been entered on 3rd January 2024 for the manufacturing of ‘chemical’ and ‘petrochemical’ products in Bharuch by 2028. Presently, DCM Shriram currently has significant Chlor Alkali facilities in Bharuch and aims to increase their capacities in congruence with the addition of new products to its Chlor Alkali portfolio.
The MoU was signed in a ceremony held in the presence of Hon’ble Chief Minister Mr. Bhupendrabhai Patel along with other ministers and senior officials. The ceremony was a part of the “Vibrant Gujarat Global Summit 2024” which will be taking place from 10th January to 12th January 2024 in Gandhinagar, Gujarat.
During the recent financial quarters, the company has underperformed witnessing a reduction in both, the operating revenues as well as after-tax profits. The former moved down from Rs 2,937.17 during Q1FY23-24 to Rs 2,825.37 crores during Q2FY23-24, and, the latter, during the same period, dipped from Rs 56.58 crores to Rs 32.24 crores.
DCM Shriram Limited is a conglomerate company based in India that engages in a wide range of businesses, i.e., agri-rural, chlor-vinyl, and others. The products of the company include urea & SSP fertilizers, sugar, PVC resins, PVC compounds, power, etc.
Written by Amit Madnani
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