Fundamental

DCM SHRIRAM

Ticker : 523367
BUY: Rs. 492.65
Target: Rs. 580
Face Value : Rs.2
Equity: Rs. 31.35Cr.
52-Week H/L: Rs.504.30/222.55



DCM Shriram Limited is engaged in the business of fertilisers, sugar and caustic soda. The company's segments include fertilisers, sugar and sugar products, co-generation of power, and bioseeds, which produces hybrid seeds, and others. In Q4FY19, the company’s net sales stood at Rs. 1887.92 crore in March 2019, up 20.55 per cent from Rs. 1566.06 crore in March 2018. The company’s net profit stood at Rs. 292.81 crore in March 2019, up 477.42 per cent from Rs. 50.71 crore in March 2018. Sugar revenue was up by 8%. Overall sugar sales volumes were up by 32% YoY and the revenues from the chemicals segment jumped 24 per cent YoY. The company has projects under implementation at investment of Rs 1,642 crore in sugar and chloro-vinyl segments, to be commissioned in phases. By virtue of the above factors, we recommend a BUY.