DCM Shriram Limited (DCMSHRIRAM) AI Stock Analysis

Company Guidance

Management said SFS’s timing-related impact may reverse in Q3, subject to crop conditions and channel demand; PVC demand should improve after the monsoon, with Q3 and Q4 described as good seasons, while near-term prices remain influenced by energy costs, currency movements, global supply conditions and domestic trade policy measures. Domestic sugar price is currently around INR 4,800 per quintal and is expected to be range bound; management said crushing will start for some mills in the first week of November and production guidance is too early, with an update possible in the next two, three months. Ethanol capacity is in the range of around 15 crore to 16 crore liters, almost 50% molasses and 50% grain, with the company saying it would be able to easily manufacture, I think, 8 crore liters from C-heavy; the demerger is in a pretty advanced stage, with the company targeting getting it to the board in Q1 FY 2028. Over the next one year, around one-third of total power requirement should come from renewable sources, with another 70 MW to 80 MW planned and returns on investment in excess of 20%, 25%; after projects are commissioned, captive chlorine consumption is expected at 45% in Bharuch and in the range of 62% in Kota, with captive and pipeline customers in the range of 70%.