Buy DCM Shriram; target of Rs 246: Emkay

Brokerage house Emkay Global Financial Services is bullish on DCM Shriram and has recommended buy rating on the stock with a target price of Rs 246 in its research report dated November 14, 2014.

December 22, 2014 / 13:52 IST

26 Aug, 2025 12:21

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Emkay's research report on DCM Shriram

Consolidated revenues at Rs 14.3bn were down 15% yoy and lower than our estimates on the back of lower than estimated bulk fertilizer trading as the company consciously remained conservative on bulk fertilizer trading

Consolidated EBITDA at Rs 822mn was up 22% yoy though lower than our estimates of Rs 1.6bn due to lower profitability from chlor vinyl business on account of maintenance shutdown at Bharuch plant and loss for the bioseed business

"We have revised our FY15E/16E earnings estimate lower primarily on the back of lower bulk fertilizer trading and lower average realizations for the chlor vinyl business. Revenue for FY15E/16E has been reduced by 7% each respectively. APAT estimate for FY15 has been reduced by 9% while we maintain our FY16 estimate. We have reduced our target price to Rs 246 thereby reducing our rating to from Buy to Accumulate", says Emkay Global Financial Services research.

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