Volumes were unusually high at the DCM Shriram counter this morning, with investors looking to grab the stock after the company announced that its board will consider a share buyback on Monday, 18 June 2018.
On BSE, the stock is up 11% at Rs 300.50, after touching a high of Rs 306. More than 1.93 lakh shares have changed hands so far at the DCM Shriram counter on BSE today, nearly six times the average daily volume of about 34,000 shares.
On the National Stock Exchange, the DCM Shriram Limited counter has clocked a volume of more than 1.72 million shares so far in the session today.
In the quarter ended March 2018, DCM Shriram's consolidated net profit declined nearly 68% to Rs 50.71 crore. Net sales were down 3.3% at Rs 1550.69 crore in the fourth quarter, compared to year-ago quarter.
From a 52-week high of Rs 628.05 it touched on BSE on 22 January this year, the stock slid down gradually to Rs 222.55 on 16 May 2018, recording a 52-week low.
More often than not, a company resorts to a share buyback, aiming to halt the stock's slide. Reduced supply of shares in the market results in a price increase and also help improve the EPS.
DCM Shriram Ltd's business portfolio comprises primarily of agri-rural business and chlo-vinyl business. Under agri-rural segment, the company is engaged in urea & SSP fertilizers, sugar and farm inputs marketing activities.
The Chlor-Vinyl segment involves caustic soda, chlorine, calcium carbide, PVC resins, PVC Compounds, Power and Cement businesses.