Dwarikesh Sugar Industries Ltd., incorporated in the year 1993, is a Small Cap company (having a market cap of Rs 601.62 Crore) operating in Sugar sector.
Financials
For the quarter ended 31-12-2020, the company reported a Standalone Total Income of Rs 385.19 Crore, down -7.99 % from last quarter Total Income of Rs 418.62 Crore and up 20.11 % from last year same quarter Total Income of Rs 320.70 Crore. Company reported net profit after tax of Rs 7.47 Crore in latest quarter.
Investment Rationale
Though the brokerage believes the company would be able to witness strong earnings growth & sustainable cash flows in future, the execution & scaling up of project have seen many teething issues in the past. It believes it can face delays in commissioning of new distillery as well. Hence, it awaits clarity on the details and timeline of capex plan. It maintains HOLD recommendation with a revised target price of Rs 36.
Promoter/FII Holdings
Promoters held 42.08 per cent stake in the company as of March 31, 2020, while FIIs held 3.32 per cent, DIIs 3.77 and public and others 54.13 per cent.
