Dalmia Bharat Sugar And Industries Ltd Stock Analysis

BSE: 500097 | NSE: DALMIASUG | Sugar | Small Cap

BSE Share Price Aug 05, 18:03
344.70 -6.00 (-1.71%)

DeciZen - Make an Informed Decision on Dalmia Bharat Sugar

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Dalmia Bharat Sugar Price Chart

P/E Ratio (SA) :
12.70
Market Cap :
2,790 Cr.
52-wk low :
282.1
52-wk high :
568.7
Bole Toh?

1. Is Dalmia Bharat Sugar And Industries Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Dalmia Bharat Sugar And Industries Ltd is a below average quality company.

2. Is Dalmia Bharat Sugar And Industries Ltd undervalued or overvalued?

The key valuation ratios of Dalmia Bharat Sugar And Industries Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Dalmia Bharat Sugar And Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Dalmia Bharat Sugar And Industries Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Dalmia Bharat Sugar:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Dalmia Bharat Sugar And Industries Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 5.4%4.2%4%7.3%12.5%7.6%9.3%9.3%10.5%10.3%-
Value Creation Index -0.6-0.7-0.7-0.5-0.1-0.5-0.3-0.3-0.3NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 9981,1921,1501,1661,6862,2442,0192,1112,6863,0183,138
YoY Gr. Rt. %-19.4%-3.5%1.4%44.6%33.1%-10.1%4.6%27.2%12.4%-
Adj EPS 2.40-0.26.222.915.921.623.833.236.127.1
YoY Gr. Rt. %--99.2%-1300%NA268.9%-30.6%36%9.9%39.9%8.7%-
BVPS (₹) 55.956.456.262.7154.4179191.5198.7258.2285.9292
Adj Net Profit 19.30.2-250.3185129175192269292220
Cash Flow from Ops. 98.5267-11.4-23.875.9659-220209346569-
Debt/CF from Ops. 83-82-47.8161.2-4.76.12.81.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 13.1%12.4%14.4%12.4%
Adj EPS 35.3%9.5%18.6%8.7%
BVPS 19.913.114.310.8
Share Price 35.3% 14.6% 61.6% -23.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 4.30-0.410.421.19.511.712.214.513.39.4
Op. Profit Mgn % 159.49.819.522.410.411.7161814.113
Net Profit Mgn % 1.90-0.24.3115.78.79.1109.77
Debt to Equity 1.71.82.12.210.50.70.80.50.4-
Working Cap Days 3052592733222581902452972482180
Cash Conv. Cycle 175114124190168951171681501360

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 14.35%

Net Profit is growing at healthy rate in last 3 years 18.64%

Debt to equity has declined versus last 3 years average to 0.35

Sales growth is good in last 4 quarters at 23.17%

Return on Equity has declined versus last 3 years average to 9.40%

Latest Financials - Dalmia Bharat Sugar And Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 27.1 36.5
TTM Sales (₹ Cr.) 3,138 3,018
BVPS (₹.) 292 291.5
Reserves (₹ Cr.) 2,347 2,343
P/BV 1.18 1.19
PE 12.70 9.46
From the Market
52 Week Low / High (₹) 282.10 / 568.65
All Time Low / High (₹) 11.20 / 620.00
Market Cap (₹ Cr.) 2,790
Equity (₹ Cr.) 16.2
Face Value (₹) 2
Industry PE 18.6

Management X-Ray of Dalmia Bharat Sugar :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of Dalmia Bharat Sugar

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Dalmia Bharat Sugar And Industries Ltd

Dalmia Bharat Sugar and Industries Limited has been one of the fastest-growing success stories in the Indian sugar industry. The company’s foray into the sugar business was made in the mid-90s and the first unit of 2500 TCD was set up at Ramgarh, a village in the Sitapur district of Uttar Pradesh in 1994.

During 2006-2007, the company embarked on a major growth path by setting up two greenfield plants at Jawaharpur (Dist. Sitapur, U.P.) and Nigohi (Dist. Shahjahanpur, U.P.) and expanding existing facilities at the Ramgarh unit.

It is now a fully integrated player with 120 MW of co-generation capacity and a distillery of 255 KLPD along with incineration boilers. It also has facilities for processing of raw sugar.

These state-of-the-art facilities serve as a role model for the sugar industry since the company has achieved excellence in plant operational metrics and holds a technological leadership position in the industry.

Dalmia Bharat Sugar and Industries Limited has robust quality systems and has also embarked upon 5S and TPM initiatives to create world-class systems and processes. After having received wide acceptance for its world-class systems, it now produces high-quality sugar which has found wide acceptance in markets in U.P. and Eastern India.

The company is a preferred sugar supplier to brand-enhancing institutional giants such as Coca-Cola, PepsiCo, Mondelez, Perfetti, Britannia, Wal-Mart India, Dabur, D-Mart, India Glycols Allied Blenders & Distillers, United Breweries, Carlsberg, SABMiller and many others in the alcohol segment. It also exports to various locations like Indonesia, Malaysia, Bangladesh, Sri Lanka, Nepal, Bhutan, Middle East, Mediterranean countries, East Africa etc.

The team has taken up several initiatives to drive sustainable growth through water conservation and alternative energy solutions. This has led to lasting competitive advantage and efficiencies in all aspects of operations. It has also taken on a proactive role at the industry level and has been instrumental in driving many policies and regulatory changes in the sugar, ethanol and renewable energy sector.

It is under the leadership of Gautam Dalmia that the sugar business has consistently been performing beyond expectations. He has been instrumental in driving Dalmia Sugar’s growth across the country by taking the business at the forefront of technological and operational excellence.

Business area of the company

The company is mainly engaged in manufacturing of sugar, generation of power, manufacturing of Industrial alcohol and manufacturing of refractory products.

Products segments

Sugar: Dalmia Bharat Group’s foray in to the sugar business was made in the mid-nineties. It has at present five sugar units, of which three are located in the largest sugar producing state of Uttar Pradesh and two are in Maharashtra. It is the only company in India to have manufacturing facilities in two non-contiguous states in India.

Dalmia Sanjeevani Hand Sanitiser: To meet the growing demand of hand sanitisers due to the ongoing pandemic of COVID-19, DBSIL is manufacturing alcohol-based hand sanitisers as per the WHO recommended formulation. Dalmia Sanjeevani Hand Sanitiser is an alcohol-based sanitiser containing 80% ethyl alcohol content which is very effective against viruses.

Dalmia Utsav - A Range of Superior Quality Cane Sugar: With a vision to expand its reach to the consumers, Dalmia Bharat Sugar and Industries Limited (DBSIL) has  launched its packaged sugar under the brand name “Dalmia Utsav”.‘Dalmia Utsav’ signifies “Celebrating Purity” and DBSIL aims to provide high-quality sugar to consumers by using a world-class and eco-friendly production process in line with Dalmia Bharat Group’s commitment towards Quality and Sustainability.

Power Business: Dalmia Sugar and Industries Limited has an integrated business model to de-risk itself from the cyclical nature of the sugar industry. Bagasse, a residue left after the extraction of juice from sugarcane, has high calorific value and is used in the generation of electricity, substituting the conventional thermal alternatives and eliminating the emission of greenhouse gases.

Ethanol: Molasses is distilled to produce different kinds of alcohol and the company produces various types of alcohol i.e. Rectified spirit (RS), Extra neutral alcohol (ENA)/Hydrous Alcohol, Ethanol or Anhydrous Ethanol and Denatured spirit (SDS).

Organic Manure: The main customers of organic manure for DBSIL are farmers and tea estates. Its bio-composting facility can produce about 20,000 MT of organic manure per annum. It has an in-house availability of press mud, which is key raw material, from its own sugar factories. This allows for smooth production of good quality organic manure.

Milestones

  • 1994: First sugar plant commissioned in Ramgarh (2,500 TCD capacity).
  • 2000: Ramgarh plant capacity increased to 5,000 TCD.
  • 2007: Jawaharpur and Nigohi sugar units commissioned. Commissioned co-generation plants (79MW) at Ramgarh, Nigohi and Jawaharpur. Commissioned 80 KLPD distillery in Jawaharpur.
  • 2012: Acquired the Kolhapur unit in September 2012.
  • 2015: Commenced commercial production at Ninaidevi in November 2015.
  • 2016: Commissioned a distillery in Kolhapur.
  • 2019: Increased Jawaharpur distillery capacity to 120KLPD and commissioned the Nigohi distillery (60KLPD). Aggregated the Sangli and Kolhapur unit capacities at 10,700 TCD.
  • 2020: Launched a sugar refinery of 1200 TPD at the Nigohi unit.
  • 2020: Distillery capacity at Nigohi expanded to 110 KLPD.
  • 2022: Brownfield projects successfully and punctually commissioned including expansion of the sugar capacity at Jawaharpur and Nigohi units along with a refinery at Jawaharpur despite the COVID pandemic.
  • 2022: Jawaharpur and Kolhapur distilleries expanded to 220 KLPD and 120 KLPD, respectively.
  • 2022: Ramgarh distillery of 140 KLPD commissioned.
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