Dhampur Sugar Mills' Q1 FY25 Results Show Negative Performance and 'Strong Sell' Rating by MarketsMOJO

Aug 02 2024 09:00 PM IST
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Dhampur Sugar Mills, a smallcap company in the sugar industry, reported a negative financial performance for the quarter ending March 2024. The company's stock received a 'Strong Sell' call from MarketsMojo, with a decline in profit before and after tax, net sales, and operating profit to interest ratio. The company's reliance on non-business income and low earnings per share raise concerns about its sustainability.

Dhampur Sugar Mills, a smallcap company in the sugar industry, recently declared its financial results for the quarter ending March 2024. According to the data released on August 2, 2024, the company’s stock has been given a ‘Strong Sell’ call by MarketsMOJO.

The financial performance of Dhampur Sugar for the quarter has been very negative, with a score of -29 compared to -10 in the previous quarter. This decline can be attributed to various factors, including a significant increase in interest costs, a decrease in profit before tax and after tax, and a decline in net sales.


The company’s half-yearly interest costs have grown by 126.52%, indicating increased borrowings. Additionally, the profit before tax and after tax for the quarter have fallen by -104.2% and -95.4% respectively, compared to the average of the previous four quarters. This trend is a cause for concern in the near term.


Moreover, Dhampur Sugar’s operating profit to interest ratio for the quarter is at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments. The net sales for the quarter have also fallen by -7.0% compared to the average of the previous four quarters, showing a negative trend in sales.


The company’s non-operating income for the quarter is 177.68% of its profit before tax, which suggests a high income from non-business activities. This may not be a sustainable business model in the long run. Additionally, the earnings per share for the quarter are at their lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.


In conclusion, Dhampur Sugar’s financial results for the quarter ending March 2024 have been disappointing, with a ‘Strong Sell’ call by MarketsMOJO. The company’s performance has been affected by various factors, and it remains to be seen how it will address these challenges in the future.


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