Buy Dwarikesh Sugar Industries, target price Rs 145: ICICI Direct.

ICICI Direct has buy call on Dwarikesh Sugar Industries NSE 0.30 % with a target price of Rs 145. The current market price of Dwarikesh Sugar Industries is Rs 101.35. Time period given by analyst is one year when Dwarikesh Sugar Industries Ltd NSE 0.30 %. price can reach defined target.

Dwarikesh Sugar Industries Ltd., incorporated in the year 1993, is a Small Cap company (having a market cap of Rs 1914.08 Crore) operating in Sugar sector.

Dwarikesh Sugar Industries Ltd. key Products/Revenue Segments include Sugar, Ethanol, Power, Miscellaneous Sales, Molasses, Other Operating Revenue and Sanitizer for the year ending 31-Mar-2022.

For the quarter ended 31-03-2022, the company reported a Standalone Total Income of Rs 475.48 Crore, down -21.06 % from last quarter Total Income of Rs 602.32 Crore and down -20.93 % from last year same quarter Total Income of Rs 601.31 Crore. Company reported net profit after tax of Rs 59.61 Crore in latest quarter.

Investment Rationale

Dwarikesh Sugar is continuously increasing its diversion toward ethanol, which is fetching better profitability for the company. It has completed its distillery capex, which has taken its ethanol production capacity from 5.5 crore litres pa to 11 crore litres pa. Moreover, the company is setting up sugar refinery to utilise high export demand for refined sugar. This would improve its sugar realisation in future. It remains positive on the sugar industry and the company.

Promoter/FII Holdings

Promoters held 42.09 per cent stake in the company as of 31-Mar-2022, while FIIs owned 7.7 per cent, DIIs 3.25 per cent.