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Shares of DCM Shriram Ltd hit a new high of Rs 1,199 on the BSE after they rallied 18 per cent on the back of heavy volumes in intra-day trade on Monday in an otherwise weak market. At 01:11 pm, the stock was trading 14 per cent higher at Rs 1,157 compared to a 1.3 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped three-fold, with a combined 2.34 million equity shares having changed hands on the NSE and BSE.
In the past month, the stock of DCM Shriram has zoomed 65 per cent, as against a 0.20 per cent rise in the Sensex. The company reduced its net debt to Rs 180 crore as of March 31, 2021, from Rs 1,623 crore as of March 31, 2020. The debt reduction was led by lower sugar inventory and significantly lower fertilizer subsidy outstanding. A reasonable approach to Capex and working capital across businesses also led to lower net debt.
DCM Shriram is a diversified company interested in the agri-value chain (urea, sugar, seeds and trading of agri-inputs) and the chloro-vinyl chain (Chlor-alkali and PVC). Apart from these, the company is involved in certain other related businesses to take advantage of vertical integration, such as Fenesta Building System (UPVC doors and windows), cement (produced at its integrated Kota plant) and PVC compounding (50:50 JV with Axiall Inc., USA).
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