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Buy Dhampur Sugar Mills; target of Rs 295: Sharekhan

Sharekhan is bullish on Dhampur Sugar Mills has recommended buy rating on the stock with a target price of Rs 295 in its research report dated July 29, 2022.

July 31, 2022 / 02:41 PM IST
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Sharekhan's research report on Dhampur Sugar Mills

Dhampur Sugar Mills Ltd (DSML) registered mixed performance in Q1FY2023 with revenues growing by 52.3% y-o-y to Rs. 828.9 crore, while EBITDA margins fell by 292 bps y-o-y to 9.9% and PAT grew by 26.2% y-o-y to Rs. 39.3 crore. Strong revenue growth was driven by outperformance of all divisions (Sugar 58%, ethanol 46%, ethyl acetate 49% and potable spirits 85%). Ethanol segment EBIT margins fell sharply due to higher input prices/transfer pricing dragging overall profitability. Proposed 130 KLPD ethanol expansion (including 100 KLPD of grain) would lead to ethanol production worth 14-15 crore litre in FY2023 and 16 crore litre in FY2024.


Stock trades at 9.6x and 7.3x its FY2023E and FY2024E earnings. We maintain a Buy recommendation on the stock with an unchanged price target of Rs. 295.

For all recommendations report, click here


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Dhampur Sugar Mills - 290722 - khan

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first published: Jul 31, 2022 02:39 pm
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