In a recent filing with the exchange, Dhampur Sugar Mills Board declared an interim dividend of 60 percent (Rs 6) on the face value of Rs 10 per equity share out of which 50 percent (Rs 5) is solely for dividend purpose and the remaining 10 percent (Rs 1) is a special dividend which is declared after successful commissioning of new distillery project.
The company’s stock closed yesterday after observing an upside of around 3 percent at a price of Rs 230.15. The stock has moved around 12.5 percent in the past five days.
Dhampur Sugar Mills Limited is an India-based integrated sugarcane processing company engaged in the process of manufacturing and selling sugar, power, and chemicals. It has one of the highest ethanol manufacturing and largest sugarcane processing capacities in the country. The Company’s segments include Sugar, Power, Chemicals / Ethanol, and Others.
The basic financial parameters such as the revenues and net profits of the company have shown a contrasting pattern with respect to the numbers been reported. Revenues have slightly reduced from Rs 644 crores in Q2 to Rs 642 crores in Q3. Net profits of the company, on the other hand, have shown decent improvement with a positive shift from Rs 11.5 crores in Q2 to Rs 46.4 crores in Q3.
Coming onto the profitability ratios of the company, the ROE figures have increased from 9.81 percent in FY20-21 to 11.78 percent in FY21-22. Moreover, the ROCE numbers moved up from 8.3 percent in FY20-21 to 11.31 percent in FY21-22.
Something of a concern for the company is the increasing debt to equity ratio in the recent years showing movement from 0.73 during FY20-21 to 0.99 in FY21-22.
As per the quarter ending December 2022, promoters hold a 49.08 percent stake in the company. FIIs have reduced their stake from 5.57 percent in Q2 to 5.09 percent in Q3.
Written by Amit Madnani