Sharekhan's research report on Dhampur Bio Organics
Dhampur Bio Organics Ltd (DBOL) posted mixed performance in Q1FY2024 with revenues growing by 43% y-o-y to Rs. 709.5 crore, while lower OPM resulted in a 24% y-o-y growth in operating profit. Lower interest cost led to y-o-y PAT growth of 44% to Rs. 12.7 crore. Sugar capacity expansion by 7,500 TCD will be operational by Oct/Nov-23, while installation of a dual feed greenfield distillery at Meerganj unit with a capacity of 2,50,000 litres per day (LPD) will be operational by Q2FY26. Cane plantation grew 7% in SS 2022-23. Growth momentum is expected to sustain in the next season. Focus is on minimum pest infestation to achieve better recovery.
Outlook
Stock trades at 9x/8x its FY2024E/25E earnings. We maintain a Buy rating on the stock with an unchanged PT of Rs. 215.
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