Shares of DCM Shriram rallied 7.84% on Friday’s early trades to reach an intraday high of ₹ 934.50 apiece on the National Stock Exchange (NSE), after the company provided a business update. At 12:25 PM, its shares were trading at ₹ 928.05 apiece, up 7.09%.
DCM Shriram manufactures fertiliser, sugar and caustic soda. Its business segments include fertilizers, farm solutions, sugar, bioseed, crop care, and speciality chemicals. It has manufacturing facilities in Rajasthan and Gujarat.
Earlier, the company had informed the bourses about setting up a wind solar hybrid renewable power plant project of 50 MW (~25 MW round the clock) through its Special Purpose Vehicle(s) (SPV) ReNew Green (GJ Ten) Private Limited and ReNew Green (GJ Nine) Private Limited. In an exchange filing on Thursday, it informed the exchanges that the renewable power injection of ~ 40.46 MW (~ 20.23 MW round the clock) has been started.
DCM Shriram is a small cap company with a market capitalization of ₹ 13,377 crores. It has an ideal return on equity of 15.58% and an ideal debt to equity ratio of 0.28. Its shares were trading at a price to earnings ratio of 15.00, which is almost at par with the industry P/E of 14.61. Moreover, it has a dividend yield of 1.60%.
The company’s promoters hold a 66.52% stake in it followed by retail investors with 22.80%, other domestic investors with 7.39%, foreign institutions with 2.67% and mutual funds with 0.62%.
DCM Shriram’s share price moved sideways in the past year, however, in the past five years, it delivered multibagger returns of 213%. Therefore, if an investor had invested ₹ 1 lakh in its shares five years ago, the value of their holdings would have been ₹ 3.13 lakhs today!
Written By Simran Bafna
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