Stock Review: DCM Shriram

 

DCM Shriram is an interesting story. It's a multidivisional company, multiproduct and has presence in sugar, fertiliser, agri products, bio-seeds, cement and presently sugar and fertiliser. Both the sugar and fertilizer divisions have been doing quite well.

We have been seeing the global prices of sugar and fertilizer going up. While the company all along has not been doing so well on the operational front I think maybe going forward these two divisions will be contributing to a greater extent.

All along, the chlor-alkali division has only been contributing to the bottomline of the company and that division is doing quite well too. All the divisions and products are significantly contributing and that's why I am quite bullish on the stock.

If you see the marketcap, it is also its just Rs 900 crore and even if I take the net debt of the company which is at an equivalent amount of about Rs 900 crore, the EV works out to about Rs 1,800 crore which seems quite low. Once this stock comes on the radar of the investors they are capable of getting good returns.