Key Events This Week
2 Feb: Q2 FY26 results reveal widening losses and collapsing operating margins
4 Feb: Upgraded to Hold by MarketsMOJO on improved financial and technical trends
4 Feb: Technical momentum shifts from bearish to mildly bearish amid mixed signals
6 Feb: Week closes at Rs.118.00, up 0.94% for the week but underperforming Sensex
2 February: Quarterly Results Highlight Margin Pressures
Dhampur Sugar Mills Ltd opened the week at Rs.115.55, down 1.15% from the previous close, reflecting investor caution following the release of Q2 FY26 results. The company reported widening losses and a collapse in operating margins, signalling ongoing operational challenges. This negative sentiment was mirrored in the stock’s volume of 9,893 shares traded, as the broader market also declined with the Sensex falling 1.03% to 35,814.09.
3 February: Market Recovery Supports Modest Stock Gain
On 3 February, Dhampur Sugar rebounded to close at Rs.116.80, a 1.08% gain supported by a broader market rally where the Sensex surged 2.63% to 36,755.96. The stock’s volume dipped to 5,496 shares, indicating selective buying interest. This day preceded the announcement of an upgrade by MarketsMOJO, which likely contributed to the positive price action.
4 February: Upgrade to Hold and Technical Momentum Shift
4 February was pivotal for Dhampur Sugar Mills Ltd as it closed at Rs.122.80, marking the week’s high with a 5.14% gain on heavy volume of 24,563 shares. This surge followed MarketsMOJO’s upgrade of the stock from Sell to Hold, citing improved financial performance and a stabilising technical outlook. The upgrade was driven by a 95.0% increase in profit before tax excluding other income to ₹31.08 crores and an 85.6% rise in net profit after tax to ₹26.49 crores for the quarter ending December 2025.
Despite these earnings improvements, net sales declined by 12.2% to ₹451.18 crores, highlighting ongoing top-line pressures. The technical momentum also shifted from bearish to mildly bearish, with mixed signals from MACD, RSI, and Bollinger Bands, suggesting cautious optimism among traders. The Sensex posted a modest 0.37% gain this day, closing at 36,890.21.
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5 February: Profit Taking Leads to Price Correction
Following the strong gains, the stock corrected on 5 February, closing at Rs.120.30, down 2.04% on volume of 6,182 shares. This pullback coincided with a 0.53% decline in the Sensex to 36,695.11, reflecting broader market weakness. The retreat suggests profit-taking after the upgrade and technical momentum shift, with investors digesting the mixed signals from earnings and technical indicators.
6 February: Week Ends with Slight Decline Amid Market Stability
Dhampur Sugar closed the week at Rs.118.00, down 1.91% on the day with a low volume of 2,816 shares, while the Sensex inched up 0.10% to 36,730.20. The stock’s weekly gain of 0.94% lagged the Sensex’s 1.51% rise, underscoring its relative underperformance. The subdued volume and price action suggest cautious investor sentiment as the company navigates structural challenges in the sugar sector.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.115.55 | -1.15% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.116.80 | +1.08% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.122.80 | +5.14% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.120.30 | -2.04% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.118.00 | -1.91% | 36,730.20 | +0.10% |
Key Takeaways
Improved Profitability Despite Sales Pressure: The company’s quarterly earnings showed a near doubling of profit before tax and net profit after tax, signalling effective cost control and operational efficiency. However, a 12.2% decline in net sales remains a cautionary factor, reflecting challenges in revenue growth.
Technical Momentum Shows Tentative Stabilisation: The shift from bearish to mildly bearish technical indicators suggests easing downward pressure, though short-term signals remain mixed. Investors should watch for confirmation of sustained momentum improvements.
Relative Underperformance Persists: Despite the recent upgrade and price gains, Dhampur Sugar’s stock continues to lag the Sensex, highlighting structural sector headwinds and the need for stronger growth catalysts.
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Conclusion
Dhampur Sugar Mills Ltd’s week was characterised by a cautious recovery following disappointing quarterly results and a subsequent upgrade to Hold by MarketsMOJO. The company demonstrated significant profit growth despite declining sales, while technical indicators suggest a tentative stabilisation in momentum. However, the stock’s underperformance relative to the Sensex and ongoing sector challenges temper enthusiasm. Investors should monitor upcoming earnings and technical developments closely to assess whether the stock can sustain a meaningful recovery in the near term.
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