Why is Dhampur Sugar falling/rising?

Aug 21 2025 09:57 PM IST
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As of 21-Aug, Dhampur Sugar Mills Ltd is priced at 133.55, showing a slight recent gain but a significant long-term decline of 35.53% over the past year. Despite attractive valuation metrics, the company faces challenges with declining profits and low mutual fund interest, indicating a lack of confidence in its future prospects.
As of 21-Aug, Dhampur Sugar Mills Ltd is currently priced at 133.55, reflecting a slight increase of 0.05 or 0.04%. The stock has been gaining over the past three days, with a total return of 3.53% during this period. However, it has underperformed significantly over the longer term, with a 12.11% decline over the past month and a staggering 35.53% drop over the last year. The stock is trading at a discount compared to its peers, with a very attractive valuation indicated by a ROCE of 5.6 and a low enterprise value to capital employed ratio of 0.9. Despite these positive factors, the company has faced substantial challenges, including a 43.1% decline in profits over the past year and a weak long-term fundamental strength, evidenced by a -18.05% CAGR growth in operating profits over the last five years.

In the broader market context, the stock's short-term performance of +2.89% over the past week outpaces the Sensex's gain of +1.74%, indicating a relative strength in the short term. However, the stock's long-term performance remains concerning, as it has underperformed the benchmark indices over various periods, including a -41.18% return over the past three years compared to the Sensex's +37.48%. The low participation from domestic mutual funds, holding only 0% of the company, suggests a lack of confidence in the stock's future prospects, further contributing to its overall negative sentiment in the market.
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