DCM Strengthens As Equity Promoters Hike Stake - Dec 13, 2008

The company announced the increase in promoters' stake during trading hours today, 12 December 2008.Meanwhile, the BSE Sensex was up 90.58 points, or 0.94%, to 9,736.04.On BSE, 5,669 shares were traded in the counter. The stock had an average daily volume of 6,567 shares in the past one quarter. The stock hit a high of Rs 20 and a low of Rs 18 so far during the day.

Stock hit a 52-week high of Rs 106.40 on 7 January 2008 and a 52-week low of Rs 15.15 on 16 October 2008.The small-cap stock had underperformed the market over the past one month till 11 December 2008, falling 10.90% as compared to the Sensex's decline of 1.97%. It had also underperformed the market in the past one quarter, declining 41.37% as compared to the Sensex's decline of 32.66%.

The company's current equity is Rs 17.38 crore. Face value per share is Rs 10.The current price of Rs 20 discounts the company's Q2 September 2008 annualized EPS of Rs 6.49, by a PE multiple of 3.08.Aggresar Leasing & Finance, a promoter group company, has increased its stake to 21.44% in the company after acquiring 2,48,775 shares through open market on 8 December 2008. The total promoter holding in the company stood at 43.09% as on 30 September 2008.

DCM reported a net profit of Rs 2.82 crore in Q2 September 2008 as compared to net loss of Rs 0.97 crore in Q2 September 2007. Net sales rose 38% to Rs 54.06 crore in Q2 September 2008 over Q2 September 2007.The company is engaged in manufacturing and selling cotton yarn. The group operates in four segments: textiles, information technology services, real estate and others.