Dhampur Sugar Mills Ltd | 90 Years old company | How we see its Growth further |

Technical chart study of Dhampur Sugar Mills Ltd

As per our knowledge, dhamupr sugar has already given long term breakout in a year 2016 near about 80 level. but those who miss to invest that time, can still take a look at its current development.
as of now we can see that, there is development of “Alan Andrews, Andrews’ Pitchfork” pattern. where stock is moving in channel between upper and lower line.
as per current chart we can see that, it has taken support on bottom line and able to give reversal and further if stock move and cross above 300-305 level then as per pattern we can expect it to go till mid level of 396 and then after for new life time high anywhere around 620.
so one must keep strict track of this stock, if able to cross 300-305 zone then stock will enter into strong movementum zone.

Ultimate breakout above 305 on monthly chart, strong support at recent bottom of 200 and expected to hit upper channel near 620 in coming 4-6 quarters

Detail about company and its business

About Company

Dhampur Sugar Mills Limited (DSM) is an Indian integrated sugarcane processing company engaged in the manufacturing and selling of sugar, power and chemicals. It was founded in 1933 and is headquartered in New Delhi. DSM has a cane crushing capacity of 26,000 tonnes per day and a sugar production capacity of 1.8 million tonnes per annum. The company also produces ethanol, ethyl acetate, country liquor, and renewable power.

DSM is one of the largest sugar producers in India and has a strong brand presence in the domestic market. The company exports its products to over 30 countries. DSM is also a leading player in the ethanol and power sectors.

In 2022, DSM underwent a demerger and was divided into two separate companies: Dhampur Sugar Mills Limited and Dhampur Bio Organics Limited. Dhampur Sugar Mills Limited will focus on the sugar and power businesses, while Dhampur Bio Organics Limited will focus on the ethanol and chemicals businesses.

DSM is a well-managed company with a strong track record of profitability. The company is well-positioned to continue to grow in the future.

Here are some additional facts about DSM:

  • The company’s shares are listed on the Bombay Stock Exchange and the National Stock Exchange of India.
  • DSM has won several awards, including the National Sugar Award in 2017 and the Golden Peacock Award for Corporate Excellence in 2018.
  • The company has a strong commitment to sustainability and has been recognized as a “Green Company” by the Ministry of Environment, Forest and Climate Change.

Latest Developments

  • In May 2023, the company announced that it had signed a memorandum of understanding with the Uttar Pradesh government to set up a 100 MW biomass-based power plant.
  • In June 2023, the company reported its financial results for the quarter ended March 2023. The company’s revenue increased by 24% YoY to Rs. 675 crore, while its net profit increased by 42% YoY to Rs. 60.7 crore.
  • In July 2023, the company announced that it had received a price revision for its ethanol sales from the government. The new price is Rs. 63.50 per litre, which is an increase of 7.5% from the previous price.

Here are some of the upcoming developments for Dhampur Sugar Mills Limited:

  • The company is expected to commission its new biomass-based power plant in the second half of 2023.
  • The company is also planning to expand its sugar production capacity by 10% in the next few years.
  • The company is also looking to expand its ethanol production capacity by 50% in the next few years.

Future Growth and Developments

  • Short-term (2023-2025)
    • Commission the 100 MW biomass-based power plant.
    • Expand sugar production capacity by 10%.
    • Expand ethanol production capacity by 50%.
    • Continue to export products to over 30 countries.
  • Medium-term (2025-2030)
    • Enter into new markets, such as China and Southeast Asia.
    • Expand into new product categories, such as bio-ethanol and bio-plastics.
    • Become a leader in the renewable energy sector.
  • Long-term (2030-2040)
    • Become a global player in the sugar, ethanol, and renewable energy sectors.
    • Be recognized as a leader in sustainability.

This is just a roadmap, and the actual development and growth of Dhampur Sugar Mills Limited may vary depending on a number of factors, such as the global economic environment, the price of sugar, and the availability of raw materials. However, the company is well-positioned to achieve its growth goals in the years to come.

SORT analysis for company and its sector

Strengths

  • Strong brand presence in the domestic market.
  • Export products to over 30 countries.
  • Leading player in the ethanol and power sectors.
  • Well-managed company with a strong track record of profitability.
  • Commitment to sustainability.

Weaknesses

  • Reliance on sugarcane as a raw material.
  • Vulnerable to fluctuations in the price of sugar.
  • Competition from other sugar mills in India.
  • Exposure to environmental risks.

Opportunities

  • Growing demand for sugar in India and other emerging markets.
  • Increasing government support for the ethanol sector.
  • Growing demand for renewable energy.
  • Expansion into new markets.
  • Development of new products.

Threats

  • Fluctuations in the price of sugar.
  • Competition from other sugar mills in India.
  • Environmental risks.
  • Political instability in India.
  • Changes in government policies.

Why to Invest?

Dhampur Sugar Mills Limited (DSM) is a well-established company with a strong track record of profitability. The company is one of the largest sugar producers in India and has a strong brand presence in the domestic market. DSM is also a leading player in the ethanol and power sectors.

There are a number of reasons why investors might want to consider investing in DSM. These include:

  • Strong growth potential: The demand for sugar is expected to grow in India and other emerging markets in the coming years. DSM is well-positioned to capitalize on this growth, as it has a strong brand and a well-established distribution network.
  • Diversified business: DSM is not just a sugar company. It also produces ethanol, power, and chemicals. This diversification helps to reduce the company’s exposure to the risks associated with any one industry.
  • Strong management: DSM is managed by a team of experienced and capable executives. The company has a strong track record of profitability and has been able to navigate through difficult times in the past.
  • Commitment to sustainability: DSM is committed to sustainability. The company has a number of initiatives in place to reduce its environmental impact. This commitment to sustainability could help DSM to attract new customers and investors in the future.

Of course, there are also some risks associated with investing in DSM. These include:

  • Dependence on sugarcane: DSM is dependent on sugarcane as a raw material. If the price of sugarcane were to rise sharply, it could hurt the company’s profitability.
  • Fluctuations in the price of sugar: The price of sugar is volatile. If the price of sugar were to fall sharply, it could hurt the company’s profitability.
  • Competition: DSM faces competition from other sugar mills in India. If these mills were to expand their production capacity, it could hurt DSM’s market share.

Overall, I believe that DSM is a well-managed company with a strong track record of profitability. The company is well-positioned to capitalize on the growing demand for sugar in India and other emerging markets. However, there are some risks associated with investing in DSM, such as dependence on sugarcane and fluctuations in the price of sugar.

I would recommend that investors do their own research before investing in DSM. They should consider the company’s strengths, weaknesses, opportunities, and threats before making a decision.

Updated: July 24, 2023 — 5:35 pm

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