Sugar shares have been flavour of the season amid ethanol mixing push by the federal government and bullish views by brokerages within the current previous. There are numerous sugar shares which have given multibagger returns up to now one 12 months.
Brokerage home Sharekhan has initiated protection with purchase score in certainly one of such sugar shares.
Re-initiating protection on Dhampur Sugar Mills Restricted (DSML) with a Purchase suggestion, the brokerage assigned a goal value of Rs 692 per share for this sugar inventory attributable to discounted valuations and powerful progress prospects.
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“We re-initiate protection on Dhampur Sugar Mills Restricted (DSML) with a Purchase suggestion, assigning a value goal of Rs. 692. Discounted valuations at 10.5x/8.4x its FY2023E/FY2024E EPS and powerful progress prospects (specializing in Ethanolisation) make it one other sturdy play within the sugar sector,” it stated.
Dhampur Sugar Mills Restricted (DSML), one of many largest sugar corporations in India with built-in amenities of 45,500 tonne per day (cane crushing capability), distillery capability of 500 kilo litres per day (KLPD), and co-generation capability of 216.5 megawatts (MW), goals to extend funding in ethanol capability with sturdy assist from the federal government’s prudent mixing insurance policies, strengthening the non-sugar portfolio of the enterprise, and enhancing general profitability within the medium to long run.
“The federal government’s assist for rising ethanol mixing to twenty% by SS2025 supplies additional scope to enhance progress prospects within the medium to future. The corporate strengthened its steadiness sheet by lowering debt by Rs. 830 crore up to now two years due to improved money flows (prone to additional scale back debt by Rs. 320 crore by FY2024),” underlined Sharekhan.
Any change within the authorities’s ethanol mixing coverage or decline in sugar provide attributable to climate vagaries or different provide constraints would act as a key danger.
At 10.45 am, shares of Dhampur Sugar Mills have been buying and selling with 2 per cent achieve to Rs 542 per share on the BSE. This sugar inventory has given multibagger returns to its shareholders because the shares have gained almost 200% up to now one 12 months and have surged 57% up to now one month alone as on March 24, confirmed technical information of the inventory.
The shares of jumped by over 650% up to now 2 years and given whooping 1100% return up to now 10 years.
The scrip traded on 52-week excessive worth on March 13, whereas it touched 12 months low worth of Rs 173.50 on April 5 final 12 months.
(Disclaimer: The views/ideas/recommendation expressed right here on this article are solely by funding specialists. Zee Enterprise suggests its readers to seek the advice of with their funding advisers earlier than making any monetary resolution.)
