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Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532610 | NSE: DWARKESH

Dwarikesh Sugar Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:26 pm

Market Cap 1,144 Cr.
Current Price 61.7
High / Low94.2/58.5
Stock P/E
Book Value 40.4
Dividend Yield0.00 %
ROCE13.7 %
ROE10.7 %
Face Value 1.00
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Dwarikesh Sugar Industries Ltd

Competitors of Dwarikesh Sugar Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gayatri Sugars Ltd 108 Cr. 16.629.4/15.1 20.00.00 %102 %% 10.0
Dhampure Speciality Sugars Ltd 76.8 Cr. 96.8116/66.152.3 35.60.00 %3.15 %3.78 % 10.0
Dhampur Bio Organics Ltd 823 Cr. 124171/11278.2 1462.03 %5.02 %3.67 % 10.0
DCM Shriram Industries Ltd 1,588 Cr. 182242/14113.0 1001.10 %16.1 %14.9 % 2.00
Davangere Sugar Company Ltd 565 Cr. 6.0111.5/5.6245.6 3.640.00 %6.86 %3.75 % 1.00
Industry Average2,120.32 Cr296.7129.82224.520.65%13.29%13.21%6.37

All Competitor Stocks of Dwarikesh Sugar Industries Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales381.14599.96392.22505.78601.35475.36646.46540.11383.84532.55571.21445.50312.91
Expenses358.01517.55333.68431.07546.29372.90573.16511.80357.34446.12494.14416.78286.93
Operating Profit23.1382.4158.5474.7155.06102.4673.3028.3126.5086.4377.0728.7225.98
OPM %6.07%13.74%14.93%14.77%9.16%21.55%11.34%5.24%6.90%16.23%13.49%6.45%8.30%
Other Income4.051.351.040.670.970.501.952.317.891.890.333.186.05
Interest9.6310.1213.718.603.895.457.766.166.005.925.513.504.26
Depreciation10.2810.3610.2410.5911.0311.7710.7913.2713.3712.8112.8013.4713.59
Profit before tax7.2763.2835.6356.1941.1185.7456.7011.1915.0269.5959.0914.9314.18
Tax %-2.75%23.77%23.97%29.49%29.75%30.48%30.00%29.94%29.96%32.82%31.24%31.28%30.75%
Net Profit7.4748.2327.1039.6328.8859.6139.707.8410.5246.7540.6210.269.81
EPS in Rs0.402.561.442.101.533.172.110.420.562.482.160.540.52

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthSep 2011Sep 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5936999281,1287941,1901,4301,0841,3361,8391,9792,1031,862
Expenses5196058691,0436869171,2879551,2001,6381,6881,8901,644
Operating Profit75945986108273142129136201291213218
OPM %13%13%6%8%14%23%10%12%10%11%15%10%12%
Other Income021310131817365731511
Interest60797175525225213348322619
Depreciation33333347313032333741445053
Profit before tax-18-16-32-273920910211172120219152158
Tax %26%28%39%37%1%25%1%14%-3%24%29%31%
Net Profit-13-11-19-1739156101957392155105107
EPS in Rs-0.81-0.69-1.19-1.032.398.295.395.053.904.868.245.575.70
Dividend Payout %0%0%0%0%0%12%0%20%26%26%24%36%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)329.41%300.00%-35.26%-5.94%-23.16%26.03%68.48%-32.26%
Change in YoY Net Profit Growth (%)0.00%-29.41%-335.26%29.32%-17.22%49.19%42.45%-100.74%

Dwarikesh Sugar Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2015-2016 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:10%
3 Years:-2%
TTM:-34%
Compounded Profit Growth
10 Years:20%
5 Years:-3%
3 Years:-3%
TTM:-101%
Stock Price CAGR
10 Years:33%
5 Years:20%
3 Years:-5%
1 Year:-32%
Return on Equity
10 Years:21%
5 Years:16%
3 Years:16%
Last Year:11%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:36 am

MonthSep 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital16161616191919191919191919
Reserves103735670267347445465560654721803731
Borrowings541423655687533342656846609524375456223
Other Liabilities9214827122920027624627925722216613777
Total Liabilities7526609991,0011,0199841,3651,6091,4451,4201,2801,4151,050
Fixed Assets470440399356331341319430410388582583564
CWIP0000101621142006
Investments0000000000011
Other Assets2822206006446876421,0291,1771,035889697831480
Total Assets7526609991,0011,0199841,3651,6091,4451,4201,2801,4151,050

Reserves and Borrowings Chart

Cash Flow

MonthSep 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +8203-15137141298-2501129633931413
Cash from Investing Activity +-3-4-4-13-5-41-44-111-18-198-92-41
Cash from Financing Activity +-4-199154-20-140-256292101-280-141-22227
Net Cash Flow11-14-42-21-200-0

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2011Sep 2012Sep 2013
Free Cash Flow-569.00-579.00-260.00-200.00-527.00-710.00-408.00-233.00-162.0075.00-447.00-364.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthSep 2012Sep 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days131143017142027136128
Inventory Days16989195333286172388330223191128222
Days Payable74580893670867549241313
Cash Conversion Cycle17544129273267116322281187173128216
Working Capital Days53-9751521317923817814811288152
ROCE %10%7%8%11%32%17%14%9%13%21%15%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters42.08%42.08%42.09%42.09%42.09%42.09%42.09%42.09%42.09%42.09%42.09%42.09%
FIIs0.38%2.24%2.76%4.09%7.70%7.16%7.01%5.66%4.37%4.53%5.31%3.97%
DIIs3.91%4.04%3.91%3.91%3.24%3.25%3.25%3.27%3.27%3.25%0.06%0.07%
Government0.13%0.13%0.13%0.13%0.13%0.13%0.13%0.13%0.13%0.13%0.13%0.13%
Public53.50%51.51%51.11%49.78%46.83%47.36%47.51%48.84%50.14%50.00%52.40%53.75%
No. of Shareholders45,18979,06899,2571,00,7061,42,4181,56,9021,62,4141,60,4831,62,4161,59,0711,66,2791,78,492

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund120,8850.191.13082024-11-1639148.38%
Groww Nifty Total Market Index Fund3080.0103082024-11-160%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)4.445.578.244.863.90
Diluted EPS (Rs.)4.445.578.244.863.90
Cash EPS (Rs.)7.228.2310.567.035.86
Book Value[Excl.RevalReserv]/Share (Rs.)43.6639.2935.7630.7425.69
Book Value[Incl.RevalReserv]/Share (Rs.)43.6639.2935.7630.7425.69
Dividend / Share (Rs.)0.002.002.001.251.00
Revenue From Operations / Share (Rs.)90.79111.68104.8497.6570.96
PBDIT / Share (Rs.)11.5012.1415.6111.067.51
PBIT / Share (Rs.)8.729.4713.298.895.55
PBT / Share (Rs.)7.658.1011.616.363.80
Net Profit / Share (Rs.)4.445.578.244.863.90
PBDIT Margin (%)12.6710.8614.8911.3310.58
PBIT Margin (%)9.598.4812.689.107.82
PBT Margin (%)8.427.2511.076.515.35
Net Profit Margin (%)4.884.987.864.975.49
Return on Networth / Equity (%)10.1514.1623.0515.8115.18
Return on Capital Employeed (%)15.8918.1627.8722.3314.89
Return On Assets (%)5.908.1810.936.334.56
Long Term Debt / Equity (X)0.170.280.290.250.39
Total Debt / Equity (X)0.540.500.770.961.35
Asset Turnover Ratio (%)1.271.561.381.200.89
Current Ratio (X)2.162.301.621.411.21
Quick Ratio (X)0.210.410.170.180.20
Inventory Turnover Ratio (X)2.192.161.701.551.28
Dividend Payout Ratio (NP) (%)0.0035.9339.420.0051.27
Dividend Payout Ratio (CP) (%)0.0024.2830.770.0034.13
Earning Retention Ratio (%)0.0064.0760.580.0048.73
Cash Earning Retention Ratio (%)0.0075.7269.230.0065.87
Interest Coverage Ratio (X)10.768.849.294.374.28
Interest Coverage Ratio (Post Tax) (X)5.155.055.902.923.22
Enterprise Value (Cr.)1725.651938.622843.431135.57962.03
EV / Net Operating Revenue (X)1.010.921.440.610.72
EV / EBITDA (X)7.978.489.675.456.80
MarketCap / Net Operating Revenue (X)0.760.761.200.310.23
Retention Ratios (%)0.0064.0660.570.0048.72
Price / BV (X)1.592.173.511.000.64
Price / Net Operating Revenue (X)0.760.761.200.310.23
EarningsYield0.060.060.060.150.23

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Dwarikesh Sugar Industries Ltd as of November 18, 2024 is: 66.14

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 18, 2024, Dwarikesh Sugar Industries Ltd is Undervalued by 7.20% compared to the current share price 61.70

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Dwarikesh Sugar Industries Ltd as of November 18, 2024 is: 71.36

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 18, 2024, Dwarikesh Sugar Industries Ltd is Undervalued by 15.66% compared to the current share price 61.70

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: 7.89%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (232.62 cr) and profit (83.77 cr) over the years.
  1. The stock has a low average ROCE of 14.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 116.42, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 192.58, which may not be favorable.
  4. The company has higher borrowings (528.46) compared to reserves (407.31), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Dwarikesh Sugar Industries Ltd:
    1. Net Profit Margin: 4.88%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.89% (Industry Average ROCE: 13.29%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 10.15% (Industry Average ROE: 13.21%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 5.15
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.21
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 0 (Industry average Stock P/E: 29.82)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.54
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Dwarikesh Sugar Industries Ltd. is a Public Limited Listed company incorporated on 01/11/1993 and has its registered office in the State of Uttar Pradesh, India. Company’s Corporate Identification Number(CIN) is L15421UP1993PLC018642 and registration number is 018642. Currently company belongs to the Industry of Sugar. Company’s Total Operating Revenue is Rs. 1974.06 Cr. and Equity Capital is Rs. 18.83 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SugarDwarikesh Nagar, Bijnor District Uttar Pradesh 246762investors@dwarikesh.com
http://www.dwarikesh.com
Management
NamePosition Held
Mr. G R MorarkaExecutive Chairman
Mr. Vijay S BankaManaging Director
Mr. B J MaheshwariManaging Director
Mr. K N PrithvirajIndependent Director
Ms. Nina ChatrathIndependent Director
Mr. Gopal B HosurIndependent Director
Mr. Rajan K MedhekarIndependent Director

FAQ

What is the latest intrinsic value of Dwarikesh Sugar Industries Ltd?

The latest intrinsic value of Dwarikesh Sugar Industries Ltd as on 17 November 2024 is ₹66.14, which is 7.20% higher than the current market price of ₹61.70.

What is the Market Cap of Dwarikesh Sugar Industries Ltd?

The Market Cap of Dwarikesh Sugar Industries Ltd is 1,144 Cr..

What is the current Stock Price of Dwarikesh Sugar Industries Ltd as on 17 November 2024?

The current stock price of Dwarikesh Sugar Industries Ltd as on 17 November 2024 is ₹61.7.

What is the High / Low of Dwarikesh Sugar Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Dwarikesh Sugar Industries Ltd stocks is 94.2/58.5.

What is the Stock P/E of Dwarikesh Sugar Industries Ltd?

The Stock P/E of Dwarikesh Sugar Industries Ltd is .

What is the Book Value of Dwarikesh Sugar Industries Ltd?

The Book Value of Dwarikesh Sugar Industries Ltd is 40.4.

What is the Dividend Yield of Dwarikesh Sugar Industries Ltd?

The Dividend Yield of Dwarikesh Sugar Industries Ltd is 0.00 %.

What is the ROCE of Dwarikesh Sugar Industries Ltd?

The ROCE of Dwarikesh Sugar Industries Ltd is 13.7 %.

What is the ROE of Dwarikesh Sugar Industries Ltd?

The ROE of Dwarikesh Sugar Industries Ltd is 10.7 %.

What is the Face Value of Dwarikesh Sugar Industries Ltd?

The Face Value of Dwarikesh Sugar Industries Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Dwarikesh Sugar Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE