Continuing the downward trend, shares of DCM Shriram Ltd fell more than 5% in early trade on Wednesday. The stock recorded a new 52-week low again for the second consecutive trading session. The stock has fallen 31.40% from 52-week high of 1263.8.
Analysts expect the stock to witness further weakness, and underperform in the coming trading sessions, due to heavy selling pressure. “The stock has slipped below its key support of 890 that has been acting as strong support since last 2 years and this does not augur well for the bulls,” said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.
According to Bhosale, weakness seems to be on cards ahead, where 810 seems the next support, previous support that was around 890 is likely to act as resistance, in case of any bounce back.
Further, the stock has fallen nearly 20%, since the company reported its July-September earnings on October 19. The company’s expenditure surged 36% on year to 2,679.80 crore rupees from 1,970.01 crore rupees, which dented the bottom-line.
The specialty chemical firm’s profit after tax fell 19% on year to 128.12 crore rupees, and fell around 50% sequentially.
The company’s revenue from operations for the quarter-ended September rose 28% on year to 2,740 crore rupees from 2,145 crore rupees.