DCM Shriram Breaks Out, Eyes ₹1,200 After Strong Guidance

DCM Shriram shares broke above a key resistance of ₹1,065 on Thursday, setting up a move toward ₹1,200, according to a technical report. The stock had found support at ₹980 last week before rallying. The breakout shifts momentum in favour of buyers, with the next resistance at ₹1,150.

The report sets a buy at ₹1,076, with an additional entry on a dip to ₹1,050. Stop-loss is at ₹1,015. For those already holding, the report suggests tightening stops as the stock advances – to ₹1,100 when it hits ₹1,150, and to ₹1,145 as it nears ₹1,175. Full profit target is ₹1,200.

The technical call is backed by a strong fundamental outlook. The company guided for FY27 revenue of ₹2,200–2,300 crore, implying 32–35 percent growth over FY26, and maintained operating margin above 20 percent. Q1FY27 was a record quarter, with operating leverage playing out strongly, the report noted. The orderbook stands near ₹1,800 crore, executable within six to nine months, providing near-term revenue visibility.

Pricing power supports the margin story. The company’s prices run 10–12 percent above competition, reflecting strong product differentiation. Capacity utilisation is around 70 percent, with scope to push toward 85 percent without significant capital expenditure. The report said ₹80–90 crore in capex supports about ₹500 crore in incremental revenue, pointing to an asset-light expansion model.

The export mix is expected to rise, which can further expand margins. The company aims to increase its global market share, the report added.

The report highlighted the sustainable margin profile, driven by the orderbook and pricing power. FY28 onwards, the company expects 20–25 percent CAGR on a higher base.