Rs 12,000 crore project upcoming: This mid-cap company signs MoU with Government of Gujarat – details inside!

The stock gave multibagger returns of 175 per cent in 3 years and a whopping 1,780 per cent in a decade.

DCM Shriram Ltd, India’s second-largest chlor alkali manufacturer, signed a memorandum of understanding (MoU) with the Government of Gujarat to invest a proposed Rs 12,000 crore in manufacturing of chemical and petrochemicals products in the Bharuch by 2028.

The MoU was signed in a ceremony held at Gandhinagar, Gujarat on January 03, 2024, in the presence of Hon’ble CM Shri Bhupendra Bhai Patel along with other ministers and senior officials from the state government. The ceremony was a part of the Vibrant Gujarat Global Summit 2024 which will take place from January 10, 2024 to January 12, 2024, in Mahatma Mandir, Gandhinagar, Gujarat.

DCM Shriram currently has significant chlor alkali facilities in Bharuch, Gujarat and aims to increase the existing capacities while adding new products to its Chlor alkali portfolio.

The current business portfolio of DCM Shriram spans multiple sectors including the chlor-vinyl business – (Caustic soda, chlorine, aluminium chloride, calcium carbide, PVC resins, PVC compounds, power and cement); the agri rural business (Urea, sugar, ethanol, farm solution business covering the entire range of inputs, R&D based hybrid seeds) and value-added business - fenesta building systems which make UPVC and aluminium windows and doors.

Today, shares of DCM Shriram Ltd plunged 1.13 per cent Rs 1,063.85 per share with an intraday high of Rs 1,097.45 and an intraday low of Rs 1,052. The stock’s 52-week high of Rs 1,175 and its 52-week low of Rs 730.05.  

The company has a market cap of Rs 16,590 crore and has delivered good profit growth of 21.2 per cent CAGR over the last 5 years. The company has a good return on equity (ROE) track record: 3 years ROE 26 per cent and its median sales growth is 23 per cent of last 10 years.

The stock gave multibagger returns of 175 per cent in 3 years and a whopping 1,780 per cent in a decade. Investors should keep an eye on this Mid-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.