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Dalmia Bharat Sugar & Industries Ltd. Stock Analysis

Small Cap
Evaluated by 532 users | BSE: 500097 | NSE: DALMIASUG |
Sugar
Founded in 1935 by Jaidayal Dalmia; the cement division of Dalmia Cement Bharat Limited (DCBL) was established in 1939 and enjoys a heritage of 70 years of expertise and experience. The company is headquartered in New Delhi with cement, sugar, travel agency, magnesite, refractory and...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 1.33%3%5.44%4.22%3.95%7.34%12.51%7.56%9.27%9.29%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6697359981,1921,1501,1661,6862,2442,0192,035
Y-o-Y Gr. Rt.-9.8%35.8%19.4%-3.5%1.4%44.6%33.1%-10.1%0.8%
Adjusted EPS (Rs.) 0.22-0.182.380.02-0.246.2122.9115.921.6323.76
Y-o-Y Gr. Rt.--181.8%NA-99.2%-1300%NA268.9%-30.6%36%9.9%
Book Value per Share (Rs.) 53.6653.7755.9256.3856.1862.68154.42178.99191.45198.7
Adjusted Net Profit 1.8-1.419.30.2-250.3185129175192
Net Op. Cash Flow (Rs. Cr.) 10534.798.5267-11.4-23.875.9659-220223
Debt to Cash Flow from Ops 6.2920.487.983.04-82-47.815.991.18-4.715.73
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Dalmia Bharat Sugar & Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 13.2%12.1%6.5%0.8%
Adjusted EPS 68.2%NA1.2%9.9%
Book Value per Share 15.728.78.83.8
Share Price 25.8% 22.9% -9.5% 48.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 0.19-0.324.30.03-0.4310.3821.069.5411.6812.18
Operating Profit Margin (%) 9.7611.6115.039.379.8419.4622.4410.4111.7412.8
Net Profit Margin (%) 0.26-0.191.930.01-0.174.31115.748.679.45
Debt to Equity 1.521.631.741.782.052.240.970.540.670.79
Working Capital Days 518357305259273322258190245308
Cash Conversion Cycle 24921017511412419016895117176
Entity Percentage Holding
Promoters 74.91%
Institutions 2.38%
Non-Institutions 22.70%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Dalmia Bharat Sugar & Industries Ltd.'s performance infers:

Dalmia Bharat Sugar & Industries Ltd. earnings have grown by 0%, whereas share price has appreciated 22.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Dalmia Bharat Sugar & Industries Ltd. share prices over the last 10 years. Here is what we found out:

Dalmia Bharat Sugar & Industries Ltd. share price has appreciated 9.8% annually over the past ten years.

Founded in 1935 by Jaidayal Dalmia; the cement division of Dalmia Cement Bharat Limited (DCBL) was established in 1939 and enjoys a heritage of 70 years of expertise and experience. The company is headquartered in New Delhi with cement, sugar, travel agency, magnesite, refractory and electronic operations spread across the country.

The Dalmia Group had established four cement plants in pre-independence years, two of which were affected by the partition and

Founded in 1935 by Jaidayal Dalmia; the cement division of Dalmia Cement Bharat Limited (DCBL) was established in 1939 and enjoys a heritage of 70 years of expertise and experience. The company is headquartered in New Delhi with cement, sugar, travel agency, magnesite, refractory and electronic operations spread across the country.

The Dalmia Group had established four cement plants in pre-independence years, two of which were affected by the partition and Independence. The two remaining plants operate as Dalmia Cement and they have also made strategic investment in Orissa Cements Limited (OCL). Managed by a professional team, they have sustained the path to innovation and growth for seven decades.

The year 1939 saw the establishment of one of India’s first cement plants with an installed capacity of 250 tonne cement per day - they as DCBL had just arrived. The plant today has grown by manifolds in terms of capacity. They as a group too have expanded both in terms of vision as well as business interests ranging from harnessing of the bounty of iron-ore and magnesite in the country, Travel and export activities. These diversifications were an effort to build and contribute to the development of basic industrial materials. The year 1993 saw them foraying into the Sugar business with an installed capacity of 2500 TCD. Today along with the Cement business, Sugar business is one of the key growth engines of DCBL.

Apart from establishing its footprints across various business segments the company has also kept up its pace of excellence. In 1993, DCBL became the first company in South India to obtain ISO 9002 certification and second in the country among the Indian Cement Plants. In 2004, it became an ISO 14001 Certified company. Its efforts in sustaining growth with responsibility have merited it many notable awards for Energy Conservation & Efficiency, Safety, Health & Environment issues from the Government and other reputed agencies.

The company’s business has year on year moved up the value chain with a consistent record of making profits and paying dividends, making the company financially strong and stable. With a total income of over Rs 1779 crores DCBL has business interests in two major segments, Cement and Sugar. The cement business has grown with an increased production capacity from 1.5 million tonnes [MT] in the past to the current installed capacity of 9 MT. Also its sugar business since its commencement in 1994, has grown to have three Integrated Sugar Mills in the State of Uttar Pradesh. With the launch and commencement of its two Greenfield projects in the Kadapa district of Andhra Pradesh and Ariyalur in Tamil Nadu with a total 5MN tonnes capacity, DCBL has expanded its cement footprint in the Southern India. This parabolic growth in last few years is a testament of its determination to grow into a leadership position.

Product range of the company:

Currently the company has a production capacity of 3.5 million tonnes of cement and 7500 TCD of sugar. The company also owns 80 MV of captive power plant

Cement:

Special Application-

  • Oil well cement
  • Railway sleeper cement
  • Air Strip cement

Sulphate resistance cement

  • Portland cement
  • OPC 43 grade
  • Superoof (OPC 53 grade)

Portland Pozzolana cement

  • Dalmia Vajram

Sugar- The manufacture and sale of sugar accounts for a major part of Dalmia’s revenue and it aims to build deep capabilities in this segment.

Milestones:

  • 1939- 1949 - Dalmia Cement unite was started as a venture towards building a self reliant India.                 - Installed 250 tonnes per day kiln to manufacture cement by semi dry process. Machinery was then supplied by M/S Polysius, Germany.
  • 1949 - Installed a 500 tonnes per day wet process kiln supplied by M/S F.L.S. Smidth, Denmark.
  • 1958 – Magnesite operations commenced
  • 1959 - Expansion was undertaken with the installation of another 500 tonnes per day wet process Folax kiln supplied by M/S F.L.S. Smidth, Denmark.
  • 1970 - Acquired Govan Travels
  • 1981 - Started raw meal vertical Roller mill
  • 1982 – A 200 tonnes vertical shaft Kiln (first of its kind in India) was installed using fuel slurry process.
  • 1983 – Heavy fuel oil based DG sets
  • 1984 – Oil Well cement (OWC) Railway Sleeper cement
  • 1986 – Poly- bags for cement – improved packaging  and presentation
  • 1987- Lignite as fuel – reduced variable costs       - 1500 TPD KHD Dry Process Kiln
  • 1992- Computerized quarry scheduling
  • 1993- Wind Farm and IS/ ISO 9002 certification
  • 1994 – Sugar operations commenced
  • 1997 – VRM- Cement Grinding  cement vertical Roller Mill
  • 2002 – 3300 TPD –KHD Upgradation
  • 2004 – IS/ ISO 14001 certification
  • 2005 – 27 MW captive power plant commissioned
  • 2006 – A 3800 TPD FLS plant commissioned.

Awards/ Achievement:

  • 1986 - First to produce OWC in India to API specification
  • 1991 - Recognizing Dalmia Cement (B) Ltd., as centre of excellence for transfer of technology, World Bank DANIDA team sponsored a Regional Training Centre at   Dalmia Cement (B) Ltd., Dalmiapuram to cater to the needs of South Indian Cement Industries.
  • 1993 - First to obtain ISO 9002 certification South India and Second in India among Indian Cement Plants.
  • 1999 - National Award for Energy Efficiency in Indian Cement Industry. Awarded By: National Council for Cement and Building Materials.
  • 2001 - National Energy Conservation Award . Awarded By: Bureau of Energy Efficiency – Ministry of Power, New Delhi.       
  • - National Award for Energy Efficiency in Indian Cement Industry. Awarded By : National Council for Cement and Building Materials       
  • - National Award for Excellence in Energy Management. Awarded By: Confederation of Indian Industry
  • 2002 - National Energy Conservation Award. Awarded By: Bureau of Energy Efficiency – Ministry of Power, New Delhi.       
  • - National Award for Excellence in Energy Management . Awarded By: Confederation of Indian Industry.        
  • - National Award for Energy Efficiency in Indian Cement Industry. Awarded By: National Council for Cement and Building Materials
  • 2003 - Chosen by CII as a Model Plant for Energy Efficiency.       
  • - Leadership & Excellence Award in Safety, Health & Environment  Awarded By: Confederation of Indian Industry
  • 2003-04 - National Council for Cement and Building Materials, Energy Efficiency Award: National Award for Best Electrical Energy Performance in Indian Cement Industry.            
  •  - Confederation of Indian Industry. National Energy Management Award for Energy Efficient Unit
  • 2004-05 - Confederation of Indian Industry. National Energy Management Award for Energy Efficient Unit
  • 2004 - Obtained ISO 14001 Certification from BIS
  • 2008 - National Award for Excellence in Energy Management 2007 conferred by Confederation of Indian Industry [CII] – Godrej GBC
  • 2010 - Gold Award in International Control on Quality Control Circle
    Silver Award in Chapter Convention Quality Circle
    Overall Performance
    CAPEXIL - Ministry Commerce,
    CAPEXIL Export Award
    Water Disposal Management
    Management of sub-grande Minerals
    Pollution Control Excellence Award
    Certificate of Excellence Inc India 500 Awards
  • 2011 - Gold Award in Chapter Convention Quality Circle
    National Energy Conservation Award
    Excellence in HR,
    Quality Certification from TUV India
  • 2012 - Excellence in Water Management & Best Energy Efficient Award

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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