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Buy Dalmia Bharat Sugar; target of Rs 490: ICICI Direct

ICICI Direct is bullish on Dalmia Bharat Sugar has recommended buy rating on the stock with a target price of Rs 490 in its research report dated May 26, 2022.

May 30, 2022 / 04:19 PM IST
 
 
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ICICI Direct's research report on Dalmia Bharat Sugar


Dalmia Bharat Sugar (DBS) is the only sugar company present in UP and in Maharashtra. The company has sugar crushing capacity of 38250 TCD (6 lakh tonnes p.a.), distillery capacity of 600 KLD (18 crore litre p.a.), co-generation capacity of 102 MW & wind power of 16.5 MW (total 30 crore units saleable power). The company has expanded its distillery capacity from 8.5 crore litre to 18 crore litre. It would further increase its distillery capacity to 24 crore litre in the next one year through one grain based & one molasses based distillery.



Outlook


We expect distillery volumes to grow from 12 crore litre in FY22 to 22 crore litre in FY24. This would boost earning at 17.1% CAGR during FY22-24E • We continue to maintain our BUY rating on the stock. We value the stock at Rs 490, ascribing a multiple of 10x FY24 earnings.

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first published: May 30, 2022 04:19 pm
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