espresso-shot-of-the-day-dalmia-bharat-sugar-and-industries-ltd-up-by-1432-percent

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Espresso shot of the day – Dalmia Bharat Sugar and Industries Ltd up by 14.32 percent)

Espresso shot of the day – Dalmia Bharat Sugar and Industries Ltd up by 14.32 percent

June 24, 2021

DALMIA BHARAT SUGAR AND INDUSTRIES LTD 440.95 (+14.32%) BSE – INE495A01022 | 24TH JUNE 2021

Dalmia Bharat Sugar and Industries Limited has been one of the fastest-growing success stories in the Indian sugar industry. The company’s foray into the sugar business was made in the mid-90s and the first unit of 2500 TCD was set up at Ramgarh, a village in the Sitapur district of Uttar Pradesh in 1994. During 2006-2007, the company embarked on a major growth path by setting up two greenfield plants at Jawaharpur (Dist. Sitapur, U.P.) and Nigohi (Dist. Shahjahanpur, U.P.) and expanding existing facilities at the Ramgarh unit. It also has facilities for processing of raw sugar. These state-of-the-art facilities serve as a role model for the sugar industry since the company has achieved excellence in plant operational metrics and holds a technological leadership position in the industry. Dalmia Bharat Sugar and Industries Limited has robust quality systems and has also embarked upon 5S and TPM initiatives to create world-class systems and processes. After having received wide acceptance for its world-class systems, it now produces high-quality sugar which has found wide acceptance in markets in U.P. and Eastern India. The company is a preferred sugar supplier to brand-enhancing institutional giants such as Coca-Cola, PepsiCo, Mondelez, Perfetti, Britannia, Wal-Mart India, Dabur, D-Mart, India Glycols Allied Blenders & Distillers, United Breweries, Carlsberg, SABMiller and many others in the alcohol segment. It also exports to various locations like Indonesia, Malaysia, Bangladesh, Sri Lanka, Nepal, Bhutan, Middle East, Mediterranean countries, East Africa etc. The team has taken up several initiatives to drive sustainable growth through water conservation and alternative energy solutions. This has led to lasting competitive advantage and efficiencies in all aspects of operations. It has also taken on a proactive role at the industry level and has been instrumental in driving many policies and regulatory changes in the sugar, ethanol and renewable energy sector. It is under the leadership of Mr Gautam Dalmia that the sugar business has consistently been performing beyond expectations. He has been instrumental in driving Dalmia Bharat Sugar and Industries Limited growth across the country by taking the business at the forefront of technological and operational excellence.

Recent Drivers

  • According to analysts, Sugar industry is well poised to benefit from, both, global and domestic factors. Tight global demand supply situation, favourable government policies and push for higher ethanol blending in India will keep the inventory under control.
  • Dalmia Bharat Sugar and Industries Limited plans to increase its ethanol manufacturing capacity to 15 crores litres per annum by next January from 8 crores litres currently. The move is in line with the government’s decision to raise ethanol blending in auto fuels to 20 % by 2025 from about 8 %. The company believes that the recent announcement by the Central government will benefit both the country and the sugar manufacturers.
  • India's hand sanitizer production capacity went up by a staggering 1,000 times to 30 lakhs litres per day from an annual production of mere 10 lakhs litres, as sugar mills and ethanol distilleries with the help of Central and State governments rose to the occasion to meet the challenge posed by the Covid-19 pandemic.
  • Dalmia Bharat Sugar and Industries Limited reported quarterly net profit at Rs 51.86 crores in March 2021.
  • Dalmia Bharat Sugar and Industries Limited reported net sales at Rs 488.80 crores in March 2021.
 (Sources: The Hindu Business Line, Moneycontrol, BSEIndia)


Technical Force*

  • S&P BSESmallCap month till date gain up by 5.51%
  • Traded on new 52 Week High Value of 458.45
  • 3 months avg. volume of NSE: 4,33,097
  • Quantity traded: 2,27,262 | Deliverable quantity: 94,055 (41.39%)
  • Stock price has jumped more than 350% from one year low level: 99.40 (June 24, 2020)
  • Daily RSI (14) is in Overbought territory today
  • 52-week-high: 458.45 | 52-week-low: 99.40

Key Pivot  (Yearly)

R4

R3

R2

R1

PP /FIB PP

S1

S2

S3

S4

Pivot Point

-

307.05

233.00

188.40

114.35

69.75

-

-

-

Fibonacci Pivot

233.00

187.68

159.67

141.64

114.35

87.06

69.03

41.02

-


Today’s Close

440.95

SMA

BSE

10 DAY

400.57

20 DAY

378.66

50 DAY

319.61

200 DAY

187.86


Some Key Ratios (Source: BSE)

Market Cap: 3,569.02 crores

PE: 13.24

OPM%: 28.42

ROE%: 12.90

Promoters holding%: 74.91

Prev. Close: 385.70

*Chart And Technical Force data taken from the Binge desktop app.

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Chandresh Khona
by Chandresh Khona

Product Offerings Head

A teacher, writer, travel buff and now Espresso's Product Offerings Head. Ten years here has allowed me to lead the digital team at Sharekhan. My true passion lies in stock market charts.