• Quotes

  • NAVs

  • News

  • Messages

  • Opinions

  • Notices

  • Videos
Search: Messages    Stock    Boarder
 
Post a Message | Explore Forums  |  Browse Stock Messages  |  Hot Discussions  | Top rated Messages  | Top Boarders
Ads by Google
Moneycontrol.com >> Messageboard >> Stocks >> Dwarikesh Sugar >> October rains would boost margins for Dwarikesh Sugar
   You are here :     Moneycontrol     MMB    Stocks      Dwarikesh Sugar                         Most active discussions of 2006 , 2007 & 2008
October rains would boost margins for Dwarikesh Sugar (4)   07-Oct-09 21:53Track this thread   Tracked by (0)  
Posted by:   hardip singh on ( 07-Oct-09 21:53 )
Price : BSE: Rs 101.70 ( 5.28 % ), NSE: Rs. 101.95 ( 5.21 % )
There were apprehensions about the sugarcane production in UP, as the land being used for sugarcane cultivation had very deficient rains till September, 2009. It is now hoped that Dwarikesh Sugar will be able to buy good volume of sugarcane after around two months. Its crushing is expected to commence by early November and this company can utilise its additional capacities created during the last few years to the optimum use.

If one goes by the financials for the nine month ended 30th June, 2009, the Operating Profit and the Gross Profit are the highest in the Last five years viz., 98.45 crore and 99.71 crore respectively. Despite its 150% rise in the interest expense as compared to 9 months ended 30th June, 2008, it has been able to achieve a net profit of 26.49 crore against the losses during 2007 and 2008. These losses had pruned its general reserves to 106.38 crore as on 30th September, 2008. A net profit of 26.49 crore has been further added to these reserves as on 30th June, 2009.

It is enjoying healthy Price to Earning of 6.81 as against the industry average of 10.67 despite the steep rise in its shareprice in the recent past. The present EPS OF Rs.15.09 would enable it to recommend dividend after a gap of 2 years, during which it had suffered abnormal losses in line with other sugar sector companies.

Price to Book Value of 1.38 is quite healthy as compared to its peers. We may witness impressive net profit for the 12 months ended 30 September, 2009 and this trend is expected to continue during the next crushing season.

The prudent decision of the management to increase reliance on the sugar segment during the last crushing season has revived the company. The ethanol segment and co-generation segment should be operated just to utilise the leftover part of sugarcane after crushing, as these segments may not be able to get better pricing for their products.

The rains in UP during the 1st week of October, 2009 would certainly provide a very big boost to achieve much higher topline and bottomline during the next 2 quarters. All those investors, who can HOLD this scrip for atleast 6 months, would be able to get handsome gains.

1 replies to this message   Reply to this post | Rate message | Click if Offensive 

What the stars foretell

Bejan Daruwala

Ganeshaspeaks: Market prediction for Mar 16

View all astrologers

India over 10 years

See whats improved/ worsended

FII Investments »
FDI »
Exports »
Imports »
GNP »
See all »

Poll 

Will the Nifty close below 5200 next week?

Yes No
 
View Result  7 comments read all
To SMS your queries to us Type YS < Your query > SMS to 51818
Stocks to be discussed next:
|  Axis Bank |  Balrampur Chini |  Bajaj Hind |  BPCL |  Coromondel fert |  Indiabulls Realty |  GNFC |  RCF |  REC |  Tata Steel 
 view all queries »
Boarder Circle
Platinum
Gold
Silver
Newbie
Popular Boarders 7days
sukhani001
188
dipakgod
187
Bear-Market
182
emmawatsan
169
Rudra Sharma
168
All Time
more
Top Tracked 7days
KotakInvestment
1408
India_bulls
1088
joetom
1046
flashstock05
885
marketman
859
All Time
more
Prolific Boarders 7days
hsnmf
1055
dipakgod
330
ISHANT
277
radhika_nandlal
274
All Time
more

Have you made your Dream Team?

Top selected cricketers today

Virender Sehwag
Adam Gilchrist
Mathew Hayden
Suresh Raina
Yusuf Pathan
Time: 20.00 hrs
Next Match

Team Mumbai & Team Kolkata

Who will win the match?

v/s

What's happening in IPL?

Delhi have to hold their nerve

Punjab stretch Chennai to Super Over

Mumbai vs Kolkata: Starry, starry night!

more news »

more galleries »