Moneycontrol PRO

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
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

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.


Outlook


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

Close

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Dhampur Sugar Mills - 290722 - khan

Broker Research
first published: Jul 31, 2022 02:39 pm
Sections
ISO 27001 - BSI Assurance Mark