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.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation ⓘ
Value Creation Index Colour Code Guide ⓘ
|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||-0.3||-0.3||-|
Growth Parameters ⓘ
Growth Parameters Colour Code Guide ⓘ
|YoY Gr. Rt. %||-||19.4%||-3.5%||1.4%||44.6%||33.1%||-10.1%||4.6%||27.2%||12.4%||-|
|Adj EPS ⓘ||2.4||0||-0.2||6.2||22.9||15.9||21.6||23.8||33.2||36.1||21.6|
|YoY Gr. Rt. %||-||-99.2%||-1300%||NA||268.9%||-30.6%||36%||9.9%||39.9%||8.7%||-|
|BVPS (₹) ⓘ||55.9||56.4||56.2||62.7||154.4||179||191.5||198.7||258.2||285.9||308.7|
|Adj Net Profit ⓘ||19.3||0.2||-2||50.3||185||129||175||192||269||292||175|
|Cash Flow from Ops. ⓘ||98.5||267||-11.4||-23.8||75.9||659||-220||209||346||569||-|
|Debt/CF from Ops. ⓘ||8||3||-82||-47.8||16||1.2||-4.7||6.1||2.8||1.4||-|
CAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Adj EPS ⓘ||35.3%||9.5%||18.6%||8.7%|
Key Financial Parameters ⓘ
Performance Ratio Colour Code Guide ⓘ
|Return on Equity % ⓘ||4.3||0||-0.4||10.4||21.1||9.5||11.7||12.2||14.5||13.3||7.3|
|Op. Profit Mgn % ⓘ||15||9.4||9.8||19.5||22.4||10.4||11.7||16||18||14.1||11.8|
|Net Profit Mgn % ⓘ||1.9||0||-0.2||4.3||11||5.7||8.7||9.1||10||9.7||5.9|
|Debt to Equity ⓘ||1.7||1.8||2.1||2.2||1||0.5||0.7||0.8||0.5||0.4||-|
|Working Cap Days ⓘ||305||259||273||322||258||190||245||297||248||218||0|
|Cash Conv. Cycle ⓘ||175||114||124||190||168||95||117||168||150||136||0|
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 16.85%
Return on Equity has declined versus last 3 years average to 7.30%
|TTM EPS (₹)||21.6||36.5|
|TTM Sales (₹ Cr.)||2,973||3,018|
|BVPS (₹.) ⓘ||308.7||291.5|
|Reserves (₹ Cr.) ⓘ||2,483||2,343|
|From the Market|
|52 Week Low / High (₹)||282.10 / 568.65|
|All Time Low / High (₹)||11.20 / 620.00|
|Market Cap (₹ Cr.)||2,606|
|Equity (₹ Cr.)||16.2|
|Face Value (₹)||2|
|Industry PE ⓘ||10|
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.
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.