VALUE PICK FEBRUARY ’18: DCM SHRIRAM LIMITED, Update
Update:
Technical Breakout on the stock
DCM Shriram has rallied over 10% on December 18. On Friday, the stock opened on a positive note and in the later half of the day quickly surpassed its previous resistance level with strong volume.
The stock has formed a strong price volume breakout pattern on the daily as well as weekly chart.
DCM Shriram on Daily Chart –
The texture of the pattern suggests action will likely to continue if the stock maintains to trade above INR 400/410 level.
For the traders and investors, INR 410 should be the key level to watch, and if the stock trades above the same level then one can expect the uptrend to continue.
DCM Shriram on Weekly Chart –
Finblab has positive view on the stock.
6 February, 2018
Company Background –
History
DCM Shriram, a spin-off from trifurcation of the reputed erstwhile DCM Group in 1990, is a diversified company with business in agri, chemicals, plastics, cement, textiles and energy services.
Business
DCM Shriram Ltd is active in the business of producing chlor-vinyl, fertilizers, inorganic chemicals, caustic soda, hybrid seeds, pesticides, farm inputs, chlorine, calcium carbide, PVC resins, PVC compounds, power and cement.
Business Portfolio of DCM Shriram Comprises Of –
- Agri-Rural Business: Urea & SSP fertilizers, Sugar, Farm inputs marketing such as DAP, Crop care Chemicals, Hybrid Seeds
- Chlor-Vinyl Business: Caustic Soda, Chlorine, Calcium Carbide, PVC resins, PVC Compounds, Power and Cement
- Value Added Business: Fenesta Building Systems- UPVC Windows & Doors
DCM Shriram – Manufacturing Facilities
- DCM Shriram has manufacturing facilities of Fertiliser, Chloro Vinyl & Cement in Kota (Rajasthan) and of Chlor- Alkali in Bharuch (Gujrat).
- The company operates coal-based captive power, facilities – in Kota rated at 133 MW and in Bharuch at 115 MW (Gujrat).
- The Urea plant in Kota has a Production capacity of 379,000 TPA & Chlor- Alkali capacity of 4,50,000 TPA in both Kota & Bharuch.
- DCM Shriram Sugar factories are located in Ajbapur, Rupapur, Hariawan and Loni in Uttar Pradesh, with a combined installed capacity of 33,000 TCD (tonnes crushed daily) and a power-generating capacity of 115 MW.
- The Hybrid seed operations- ‘Bioseed’ started in Hyderabad (India) and now have a global footprint with presence in Vietnam, Philippines and Indonesia.
- Fenesta windows fabrication units are located in Bhiwadi, Hyderabad and Chennai.
Quality Assurance
All DCM Shriram’s main line locations / products have ISO 9001 & 14001 (Quality & Environment Systems) and OHSAS 18001 (Occupational Health and Safety Standards) in its facilities.
DCM Shriram – Management Team
DCM Shriram is managed by Mr. Ajay S. Shriram, Chairman & Senior Managing Director, Mr. Vikram S. Shriram, Vice Chairman & Managing Director and Mr Ajit. S. Shriram, Joint Managing Director along with a highly professional executive team.
Listed On
The company’s shares are listed for trading on National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) in India.
Stock Information
Share Holding Pattern
DCM Shriram Ltd – Financials
Conclusion –
Considering the techno-funda analysis and sector outlook; DCM Shriram Limited looks good at Rs 540. FinBlab recommends investing in a stock keeping a long-term view in mind. (One can accumulate on decline also).
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