Rs 512 to Rs 1115: This BSE 500 company has rallied by 117% in the last one year!

These returns are 4.8 times the returns delivered by the S&P BSE 500 index in the same period, of which the index is a part.

DCM Shriram Ltd, an S&P BSE 500 company, has delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price jumped from Rs 512 on 13th April 2021 to Rs 1115.15 on 13th April 2022, an increase of 117.8% YoY.

These returns are 4.8 times the returns delivered by the S&P BSE 500 index, of which the index is a part. An investment of Rs 1 lakh in this stock last year would have turned to Rs 2.17 lakh today. In the last one year, the index has climbed from the level of 19,402.96 on 13th April 2021 to Rs 24,092.76 on 13th April 2022, a rally of 24.17% YoY.

DCM Shriram Ltd is a leading business conglomerate with a group turnover of Rs. 8,308 crore. The company operates in 3 segments-

• Agri-Rural Business- In this segment, the company manufactures Urea, Sugar, Farm Solutions and Hybrid Seeds.

• Chlor-Vinyl Business- Caustic Soda, Chlorine, Calcium Carbide, Aluminium Chloride, PVC Resins, PVC Compounds, Power and Cement are produced under this segment.

• Value-added business- Here, the company builds Fenesta Building Systems- UPVC Windows & Doors

The company, across its various businesses, is strategically diversified yet operationally integrated at a high level. Its vision is to continue to strengthen and grow its commodity businesses as well as its “customer” & “knowledge-based” products & services.

The company is currently trading at a TTM PE of 19.53x, as against the industry PE of 20.31x. In FY21, the company delivered an ROE & ROCE of 15% and 16%, respectively.

At the closing bell on April 13, the shares of DCM Shriram Ltd were trading at Rs 1115.15, a decrease of 0.95% from its previous day’s closing price of Rs 1125.85 on BSE. The stock has a 52-week high & low of Rs 1249.95 and Rs 506.90 respectively on BSE.