Dhampur Sugar Mills Ltd (DHAMPURSUG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Dalmia Bharat

Dwarikesh Sugar

Dhampur Bio

Avadh Sugar

Dhampur Sugar

Bajaj Hindusthan

Magadh Sugar

M.V.K. Agro

Zuari Industries

Bannari Amm.Sug.

Uttam Sug.Mills

Why is Dhampur Sugar Mills Ltd ?

Weak Long Term Fundamental Strength with a -19.06% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.19 times

Positive results in Mar 26

PBT LESS OI(Q) At Rs 52.48 cr has Grown at 163.1% (vs previous 4Q average)
PAT(Q) At Rs 45.64 cr has Grown at 166.6% (vs previous 4Q average)
DEBTORS TURNOVER RATIO(HY) Highest at 24.58 times

With ROCE of 6.1, it has a Attractive valuation with a 0.8 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.95%, its profits have risen by 24.7% ; the PEG ratio of the company is 0.5

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.95% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Sugar)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Dhampur Sugar for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Dhampur Sugar

-2.95%

-0.08

35.07%

Sensex

-3.81%

-0.28

13.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-12.01%

EBIT Growth (5y)

-19.06%

EBIT to Interest (avg)

3.93

Debt to EBITDA (avg)

2.90

Net Debt to Equity (avg)

0.52

Sales to Capital Employed (avg)

1.31

Tax Ratio

23.88%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

3.08%

ROCE (avg)

12.17%

ROE (avg)

11.40%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.73

EV to EBIT

13.42

EV to EBITDA

8.61

EV to Capital Employed

0.82

EV to Sales

0.76

PEG Ratio

0.50

Dividend Yield

1.48%

ROCE (Latest)

6.11%

ROE (Latest)

5.44%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

PAT(9M)

Higher at Rs 78.16 Cr

DEBTORS TURNOVER RATIO(HY)

Highest at 24.58 times

NET SALES(Q)

Highest at Rs 552.62 cr

-12What is not working for the Company

PBT LESS OI(Q)

At Rs 2.40 cr has Fallen at -84.6% (vs previous 4Q average

PAT(Q)

At Rs 6.03 cr has Fallen at -62.9% (vs previous 4Q average

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 12.96 cr

INTEREST(Q)

Highest at Rs 15.82 cr

NON-OPERATING INCOME(Q)

is 70.87 % of Profit Before Tax (PBT

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Here's what is working for Dhampur Sugar

Net Sales - Quarterly

Highest at Rs 552.62 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 24.58 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Dhampur Sugar

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.40 cr has Fallen at -84.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 15.61 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 6.03 cr has Fallen at -62.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 16.28 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

Highest at Rs 15.82 cr

in the last five quarters and Increased by 11.64 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 70.87 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 12.96 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents