Shares of this small-cap company in the chloro-vinyl and agribusiness sectors surged over 3.5% after commissioning a 300 TPD multi-fuel Flaker plant at Jhagadia, Gujarat.
Share price variations:
With a market capitalization of Rs. 17,500.62 crores, DCM Shriram (NS:DCMS) Ltd. rose to an intraday high of Rs. 1,154.90 representing a 3.5 percent increase from its previous closing price of Rs. 1,115.35 per share.
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Reason for the Rise:
According to recent exchange filings, DCM Shriram Ltd. has announced the commissioning of a 300 tons per day (TPD) flexi-fuel flaker plant at its chemical complex in Jhagadia, Gujarat. This facility offers flexibility in fuel usage, which can enhance operational efficiency and adaptability to varying fuel market conditions.
The capacity expansion aims to support the company’s entry into new markets, particularly exports. Additionally, a second flaker unit of the same capacity and design is nearing completion and is projected to be commissioned in the upcoming quarter.
Recent Updates:
In August, DCM Shriram Ltd. commissioned a Hydrogen Peroxide (H₂O₂) plant with a capacity of 52,500 tons per annum (TPA) at its chemical complex in Jhagadia, Gujarat. This addition expands the company’s chemical business product portfolio by integrating Hydrogen Peroxide.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 75.27 percent to Rs. 100.3 crores compared to Rs. 56.58 crores in Q1FY24, while revenue from operations also marked an increase of 3.5 percent to Rs. 2,876 crores from Rs. 2,780 crores in comparison to the same period. The company’s shares have delivered a 22 percent return over the past six months.
The segment-wise revenue for DCM Shriram in Q1 FY25 comprises 28 percent from Chloro-Vinyl products, 33.24 percent from Sugar, 7.12 percent from Fenesta (UPVC windows and doors), 9.42 percent from Shriram Farm Solutions (SFS), 11.40 percent from Fertilizer, 7.57 percent from Bioseed, and 4 percent from other segments such as Cement and Polytech.
About the company:
DCM Shriram Ltd is a part of DCM Group a leading business conglomerate. The business portfolio of DCM Shriram comprises agri-rural businesses in products like urea & phosphatic fertilizers, sugar, farm solution business, and hybrid seeds. An arm of the chloro-vinyl business that produces caustic soda, chlorine, calcium carbide, aluminum chloride, PVC resins, PVC compounds, power and cement, and a Value-added business Fenesta Building Systems making UPVC windows and doors.
The company has manufacturing facilities in Rajasthan for Fertilizer, Chloro-Vinyl, and Cement, as well as Chlor-Alkali facilities in Gujarat. Its sugar factories are located in Ajbapur, Rupapur, Hariawan, and Loni in Uttar Pradesh. Additionally, it operates three distilleries with a combined capacity of 560 KLD.
The Hybrid Seed business, branded as ‘Bioseed,’ has R&D facilities in Hyderabad and the Philippines. Fenesta Building Systems operates one extrusion plant in Kota and six fabrication units in Bhiwadi, Chennai, Bhubaneswar, and Hyderabad.
Written By: Joseph Pv
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