One of the small-cap stocks is a robust conglomerate with diversified operations across agriculture, chemicals, and construction materials. The stock has jumped 3.97 percent after an agreement with JSW Renew Energy Thirty-Two Limited to invest up to Rs. 60 crores in a wind-solar hybrid renewable power project.Â
Stock Price Movement:Â
With a market capitalization of Rs. 3,802.04 crores, the shares of DCM Shriram Limited reached an intraday high of Rs. 1,127.90 per equity share, rising nearly around 3.97 percent from its previous day’s close price of Rs. 1,084.80. Since then, the stock has retreated and is currently trading at Rs. 1,111 per equity share.Â
What Happened:Â
DCM Shriram Limited has entered into a definitive agreement with JSW Renew Energy Thirty Two Limited to invest up to Rs. 60 crores in one or more Special Purpose Vehicle(s) for setting up a wind-solar hybrid renewable power project.Â
This investment aims to replace the existing 40 MW of coal-based power with 68 MW of renewable energy, enhancing the company’s sustainability initiatives. The project is expected to be completed by March 2026.Â
Capital Expenditure Plans:Â
The capital expenditure plans prioritize downstream chlorine integration in the Chemicals division, upstream integration for Aluminium extrusion in the Fenesta Building Systems division, and the addition of 74 MW of renewable energy capacity to reduce the company’s carbon footprint.Â
Segment Performance:Â
The company’s chemicals segment saw a 19% YoY revenue increase, vinyl segment revenue declined by 8% YoY due to planned maintenance, Shriram Farm Solutions revenue increased by 33% YoY, and bioseed segment revenue increased by 24% YoY revenue of Q2 FY25.Â
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Manufacturing FacilitiesÂ
DCM Shriram operates strategically located manufacturing facilities, including fertilizer plants in Kota (Rajasthan) and Bharuch (Gujarat), sugar factories in Uttar Pradesh, and chloroalkali units in Bharuch, ensuring efficient production and supply chain management.Â
Recent quarter results and ratios:
Waaree Renewable Technologies Limited’s revenue has increased from Rs. 2,708 crore in Q2 FY24 to Rs. 2,957 crore in Q2 FY25, which has grown by 9.19 percent. The net profit of Waaree Renewable Technologies Limited has also grown by 96.88 percent from Rs. 32 crore in Q2 FY24 to Rs. 63 crore in Q2 FY25.Â
Waaree Renewable Technologies Limited’s revenue and net profit have grown at a CAGR of 9.55 percent and -12.79 percent, respectively, over the last three years.Â
In terms of return ratios, the company’s ROCE and ROE should be 8.99 percent and 6.60 percent, respectively. The debt-to-equity ratio of the company is to be 0.33x, which shows the company is almost debt-free. Waaree Renewable Technologies Limited’s EPS is to be Rs. 33.4.Â
Company Overview:Â
DCM Shriram Limited is a diversified Indian conglomerate that operates across agribusiness, chemicals, and building materials sectors. Its segments include fertilizers (urea), chloro-vinyl products (PVC, caustic soda), Shriram Farm Solutions (fertilizers, seeds, pesticides), sugar (sugar, ethanol, power), and Bioseed (hybrid seeds).Â
The company also offers Fenesta UPVC windows and doors. With manufacturing facilities in Rajasthan and Gujarat, it caters to diverse markets while leveraging its legacy and expertise.Â
Written By – Nikhil NaikÂ
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