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Check Before You Invest : Dalmia Bharat Sugar And Industries Ltd

BSE: 500097 NSE: DALMIASUG ISIN: INE495A01022
  |   Sector:  Agriculture & Allied activities   |   Industry:  Sugar

Snapshot

Q.1 Which industry/sub-sector does Dalmia Bharat Sugar And Industries Ltd belong to?
Dalmia Bharat Sugar And Industries Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Sugar segment.
Q.2 Is Dalmia Bharat Sugar And Industries Ltd a good quality company?
Dalmia Bharat Sugar And Industries Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Dalmia Bharat Sugar And Industries Ltd undervalued or overvalued?
Dalmia Bharat Sugar And Industries Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 13.1 11.70
Price to Book 0.96 1.13
Price to Sales 0.86 0.97
EV to EBITDA 8.72 7.32
Q.4 Is Dalmia Bharat Sugar And Industries Ltd a good buy now?
Dalmia Bharat Sugar And Industries Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Dalmia Bharat Sugar And Industries Ltd?
Dalmia Bharat Sugar And Industries Ltd revenue growth is 29.2% for FY-2025, which is above its 5-year CAGR of 12.16%, indicating faster growth.

Q.2 Gross Profit margin of Dalmia Bharat Sugar And Industries Ltd?
Dalmia Bharat Sugar And Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.8% for FY-2025, which is below its 5-year median of 16.4%, indicating decreasing margins.

Q.3 Operating Profit Margin of Dalmia Bharat Sugar And Industries Ltd?
Dalmia Bharat Sugar And Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.55% for FY-2025, which is below its 5-year median of 14.23% indicating decreasing margins.

Q.4 Net Profit Margin of Dalmia Bharat Sugar And Industries Ltd?
Dalmia Bharat Sugar And Industries Ltd Net Profit Margin is 10.32% for FY-2025, is in line with its 5-year median of 10.06%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 12.8 16.4
Operating Profit Margin (%) 12.55 14.23
Net Profit Margin (%) 10.32 10.06

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Dalmia Bharat Sugar And Industries Ltd?
Dalmia Bharat Sugar And Industries Ltd Return on Asset is 7.35%, which is in line with its 5-year historical median of 7.21%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Dalmia Bharat Sugar And Industries Ltd?
Dalmia Bharat Sugar And Industries Ltd Return on capital employed is 9.55% for FY-2025, which is below its 5-year historical median of 12.34%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Dalmia Bharat Sugar And Industries Ltd?
Dalmia Bharat Sugar And Industries Ltd Return on equity is 12.54% for FY-2025, which is in line with its 5-year historical median of 12.54%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Dalmia Bharat Sugar And Industries Ltd?
Dalmia Bharat Sugar And Industries Ltd Cash conversion cycle is 147 days, in line with its 5-year historical median of 147 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.71 0.72
ROE (%) 12.54 12.54
ROCE (%) 9.55 12.34
Cash Conversion Cycle 147 days 147 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Dalmia Bharat Sugar And Industries Ltd?
Dalmia Bharat Sugar And Industries Ltd Debt-to-Equity ratio is 0.32, which is lower the industry average of 0.62, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Dalmia Bharat Sugar And Industries Ltd?
Dalmia Bharat Sugar And Industries Ltd Debt to cash flow from operations is 2.32, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Dalmia Bharat Sugar And Industries Ltd?

Q.1 Promoter shareholding and pledge status of Dalmia Bharat Sugar And Industries Ltd?
Promoters hold 74.91% of the Dalmia Bharat Sugar And Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Dalmia Bharat Sugar And Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Dalmia Bharat Sugar And Industries Ltd vs industry peers?
Dalmia Bharat Sugar And Industries Ltd revenue CAGR is 12.16%, compared to the industry median CAGR of 2.83%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 29.2 2.8
Gross Profit Growth (%) -1.8 3
Operating Profit Growth (%) 13.8 1.3
Net Profit Growth (%) 42.3 0.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.71 0.87
ROE (%) 12.54 7
ROCE (%) 9.55 8.97
Cash Conversion Cycle (days) 147.09 107

Valuation & price assessment

Q.1 Stock return of Dalmia Bharat Sugar And Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
14.9% 4% 1.7% 3.5%
Q.2 Valuation ratios of Dalmia Bharat Sugar And Industries Ltd vs historical?
The current P/E ratio of 13.1 is higher than its historical median of 11.70, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 13.1 11.70 13.25
Price to Book 0.96 1.13 1.05
Price to Sales 0.86 0.97 0.65
EV to EBITDA 8.72 7.32 8.73

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