Buy DCM Shriram; target of Rs 280: Dynamic Levels

The Company delivered a strong financial and operating performance during the year. Chemicals business performance improved led by better margins and volumes. Sugar business witnessed better margins with higher sugar recovery and firming up of sugar prices during the second half of the year. Fenesta business earnings improved on robust growth in sales volumes during the year. Performance of the Agri-input businesses faced challenges on account of deficient monsoons impacting demand and margins of Hybrid seeds, Agro Chemicals and bulk Fertilizer offerings.

We initiate coverage on DCM Shriram Ltd as a BUY @210 with a target of Rs 280 representing a potential upside of 33% from the buy price. DCM Shriram is trading at a low PE of 10.65.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.