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Check Before You Invest : Dhampure Speciality Sugars Ltd

BSE: 531923 NSE: ISIN: INE956B01013
  |   Sector:  Agriculture & Allied activities   |   Industry:  Sugar

Snapshot

Q.1 Which industry/sub-sector does Dhampure Speciality Sugars Ltd belong to?
Dhampure Speciality Sugars Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Sugar segment.
Q.2 Is Dhampure Speciality Sugars Ltd a good quality company?
Dhampure Speciality Sugars Ltd is a weak quality company, based on a inconsistent 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 Dhampure Speciality Sugars Ltd undervalued or overvalued?
Dhampure Speciality Sugars Ltd appears Somewhat overvalued, as its key valuation ratios are higher than 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 22.87 27.52
Price to Book 2.76 2.20
Price to Sales 2.05 2.77
EV to EBITDA 15.82 25.86
Q.4 Is Dhampure Speciality Sugars Ltd a good buy now?
Dhampure Speciality Sugars Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. 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 Dhampure Speciality Sugars Ltd?
Dhampure Speciality Sugars Ltd revenue growth is 56.7% for FY-2025, which is above its 5-year CAGR of 36.76%, indicating faster growth.

Q.2 Gross Profit margin of Dhampure Speciality Sugars Ltd?
Dhampure Speciality Sugars Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.5% for FY-2025, which is above its 5-year median of 4.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Dhampure Speciality Sugars Ltd?
Dhampure Speciality Sugars Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.52% for FY-2025, which is above its 5-year median of 2.72% indicating increasing margins.

Q.4 Net Profit Margin of Dhampure Speciality Sugars Ltd?
Dhampure Speciality Sugars Ltd Net Profit Margin is 7% for FY-2025, is above its 5-year median of 2.31%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 9.5 4.7
Operating Profit Margin (%) 8.52 2.72
Net Profit Margin (%) 7 2.31

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Dhampure Speciality Sugars Ltd?
Dhampure Speciality Sugars Ltd Return on Asset is 7.99%, which is above its 5-year historical median of 1.05%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Dhampure Speciality Sugars Ltd?
Dhampure Speciality Sugars Ltd Return on capital employed is 12.47% for FY-2025, which is above its 5-year historical median of 1.52%. 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 Dhampure Speciality Sugars Ltd?
Dhampure Speciality Sugars Ltd Return on equity is 9.34% for FY-2025, which is above its 5-year historical median of 1.35%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Dhampure Speciality Sugars Ltd?
Dhampure Speciality Sugars Ltd Cash conversion cycle is 55 days, below its 5-year historical median of 64 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.14 0.48
ROE (%) 9.34 1.35
ROCE (%) 12.47 1.52
Cash Conversion Cycle 55 days 64 days

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

Q.9 Debt to Equity ratio of Dhampure Speciality Sugars Ltd?
Dhampure Speciality Sugars Ltd Debt-to-Equity ratio is 0.00, 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 Dhampure Speciality Sugars Ltd?
Dhampure Speciality Sugars Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Dhampure Speciality Sugars Ltd?

Q.1 Promoter shareholding and pledge status of Dhampure Speciality Sugars Ltd?
Promoters hold 60.27% of the Dhampure Speciality Sugars Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Dhampure Speciality Sugars Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Dhampure Speciality Sugars Ltd vs industry peers?
Dhampure Speciality Sugars Ltd revenue CAGR is 36.76%, 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 (%) 56.7 2.8
Gross Profit Growth (%) 200 3
Operating Profit Growth (%) 0 1.3
Net Profit Growth (%) 0 0.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.14 0.87
ROE (%) 9.34 7
ROCE (%) 12.47 8.97
Cash Conversion Cycle (days) 54.73 107

Valuation & price assessment

Q.1 Stock return of Dhampure Speciality Sugars Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 19% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
19% 27.6% 23.8% 34.1%
Q.2 Valuation ratios of Dhampure Speciality Sugars Ltd vs historical?
The current P/E ratio of 22.87 is lower than its historical median of 27.52, indicating that the stock is trading below 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 22.87 27.52 13.25
Price to Book 2.76 2.20 1.05
Price to Sales 2.05 2.77 0.65
EV to EBITDA 15.82 25.86 8.73

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