ICICI Direct has given Buy recommendation for Dalmia Bharat Sugar with a target price of Rs. 610 in its research report issued on Oct 31, 2021

ICICI Direct’s research report on Dalmia Bharat Sugar

Dalmia Bharat Sugar (DBS) is only sugar company present in UP as well as in Maharashtra. The company has sugar crushing capacity of 35500 TCD (6 lakh tonnes pa), distillery capacity of 300 KLD (8.5 crore litre pa), co-generation capacity of 102 MW & wind power of 16.5 MW (total 30 crore units saleable power). The company is expanding its sugarcane & molasses and grain based annual distillery capacity from current 8.5 crore litre to 21 crore litre, which would be completed in a phased manner by December 2022

Outlook

We maintain our BUY rating on the stock We value the stock at Rs 610, ascribing a multiple of 14x FY23 earnings

 

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