Rs 4/Share Dividend: Record Date In 3 Days; Bet On The LIC-Backed Stock?

At the end of the Saturday closing session, DCM Shriram Limited reported a market valuation of Rs 15,188.78 Cr, wrapping up 1.34% higher at Rs 974 per share. The three main business categories that make up DCM Shriram's portfolio are value-added, chlor-vinyl, and agri-rural. DCM Shriram produces fertiliser, chlor-vinyl cement, and chlor-alkali at Bharuch, Gujarat, and Kota, Rajasthan. The stock will trade ex-dividend on March 6, 2024, attracting a 400% payment at a face value of Rs. 2/-per share and being a 6.76% stake by LIC in DCM Shriram the stock is likely to be in focus in the next 3 days.

DCM Shriram Dividend

"We would like to inform that the Board of Directors of the Company, at its meeting held on February 27, 2024 have inter-alia declared Interim Dividend for the financial year 2023-24 on the paid-up equity share capital of the Company, @ 200% (Rs.4 per equity share of face value of Rs.2/- each). As already intimated vide our aforesaid letter, the Record Date fixed for the purpose of the said Interim Dividend shall be March 6, 2024. Further, the said Interim Dividend shall be paid/dispatched to all eligible shareholders on or before March 27, 2024," said DCM Shriram in a stock exchange filing.

DCM Shriram News

The DCM Shriram Ltd. board of directors recently granted in-principle approval for the company's chemicals division to enter the "Advanced Materials" market by investing in epoxy and value-added products at a board meeting held on February 27, 2024. Over the next five years, the company plans on investing Rs 1000 crores to establish a state-of-the-art, greenfield epoxy manufacturing facility. Notably, the company's Epichlorohydrin (ECH) manufacturing facility in Jhagadia, Gujarat, is nearing completion and is expected to become operational in Q1 of 2024-2025. The manufacturing of epoxy requires more than 80% of the ECH produced worldwide.

Mr Ajay Shriram, Chairman & Senior Managing Director and Mr Vikram Shriram, Vice Chairman and Managing Director, of DCM Shriram Ltd, said "We are bullish about the overall prospects of the Chemicals Business and this entry into the Advanced Materials space. We already have some of the key raw materials like ECH and caustic in our portfolio which paves a logical way forward into the epoxy and value added products. The entire portfolio of Advanced Materials products including liquid epoxy resins, hardeners, solvent cuts, reactive diluents and formulated resins are finding increasing applications in sectors such as wind-blades, EVs, aeronautics, electronics, fire-proofing and light-weighting industries and India is poised to emerge as a market of choice, both for domestic and global consumption, of such products. DCM Shriram Ltd will continue to remain alert to opportunities arising in the adjacencies of its core-chemicals business and look to participate whole-heartedly in the India growth story".

DCM Shriram Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said DCMSHRIRAM is currently trading at Rs 972. The stock is exhibiting a sideways trend within the range of Rs 950 to Rs 1050, with immediate support levels identified at Rs 925. A prudent strategy would be to consider buying on dips if a reversal is observed from these support levels.

The overall trend of the stock remains sideways, supported by a consistent pattern of equal highs and equal lows on the daily chart. Additionally, lower trading volumes indicate a clear indication of a sideways trend. If the price manages to close above the Rs 1050 level, it may pave the way for an upward movement towards the target level of 1150 and beyond. This is a positive development, as it signifies a potential change in the stock's trend.

The Relative Strength Index (RSI) is currently trading flat at 47.15, suggesting that the stock is still in a sideways phase. The stock is presently trading below the 20-day and 50-day exponential moving average (EMA), indicating a slight weakness. Immediate hurdles on the upside are identified at Rs 1050.

Investors are advised to hold their long positions with a trailing stop-loss (SL) set at Rs 925.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.