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Buy Dwarikesh Sugar; target of Rs 145: ICICI Direct

ICICI Direct is bullish on Dwarikesh Sugar has recommended buy rating on the stock with a target price of Rs 145 in its research report dated May 05, 2022.

May 05, 2022 / 09:45 PM IST
The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

 
 
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ICICI Direct's research report on Dwarikesh Sugar


Dwarikesh Sugar (DSL) is a UP based sugar company with sugar crushing capacity of 21500 TCD, distillery capacity of 163 KLD & co-generation capacity of 91 MW. It is undertaking a distillery capacity addition of 170 KLD with investment of Rs 230 crore. The distillery will be commissioned by June-2022. • The company would be able to increase distillery volumes to 11 crore litre in FY24 from 5.6 crore litre in FY22.


Outlook


We maintain our BUY rating on the stock. We value the stock at Rs 145, valuing the business at 10x FY24 PE.


For all recommendations report, click here

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first published: May 5, 2022 09:45 pm
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