Dwarikesh Sugar Industries Ltd. (DWARKESH) AI Stock Analysis

• Market Cap: ₹6.90B
• Dividend Yield: 1.34%
• Average Volume (3M): 44.59K
• Price to Earnings (P/E): 34.9
• Beta (1Y): 1.64
• Revenue Growth: 11.15%
• EPS Growth: N/A
• Country: IN
• Employees: 1,443
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 0.83
• Shares Outstanding: 185,301,470
• 10 Day Avg. Volume: 46,261
• 30 Day Avg. Volume: 44,588
• PEG Ratio: -0.43
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 19.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ₹35.00 ▼(-5.99% Downside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

Dwarikesh Sugar Industries Ltd. faces significant financial challenges, with fluctuating revenues and high leverage posing risks. The technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. These factors contribute to a lower overall stock score, highlighting the need for caution among investors.

Positive Factors

Integrated business model

Dwarikesh’s vertically integrated model converts sugarcane into sugar, ethanol and power, capturing multiple value pools per ton of cane. That diversification reduces reliance on a single commodity price, smooths cash flow across cycles, and supports long‑term resilience of operating margins.

Ethanol offtake exposure

Direct participation in India’s ethanol blending market creates a structural demand outlet and potential policy‑driven offtake. Ethanol sales typically provide higher-margin, contracted or programmatic volumes versus spot sugar, offering a durable revenue stream less tied to volatile sugar realizations.

Equity buffer & improving FCF

A meaningful equity base provides capital structure stability against cyclical earnings, while recent Free Cash Flow improvement signals the company can generate cash to service obligations and fund operations. Together they enhance medium‑term financial flexibility if cash generation persists.

Negative Factors

High leverage

Elevated debt levels reduce financial flexibility and increase refinancing and interest risks, particularly for a commodity‑exposed business with volatile margins. High leverage amplifies earnings shocks and limits capacity for capital spending or strategic investments over the next several quarters.

Volatile operating cash flow

Inconsistent operating cash generation makes it harder to reliably fund procurement, capital maintenance and debt service without external financing. Persistent OCF volatility raises liquidity risk in low‑margin seasons and undermines the durability of alleged FCF improvements.

Margin pressure & revenue instability

Declining gross and net margins alongside recent revenue weakness point to structural cost or pricing pressure (e.g., cane costs, sugar realizations). Sustained margin compression reduces ability to deleverage, cut through fixed costs, or reinvest in higher‑margin segments over the medium term.

Dwarikesh Sugar Industries Ltd. Business Overview & Revenue Model

Company Description

Dwarikesh Sugar Industries Limited, an integrated conglomerate, manufactures and sells sugar and allied products in India and internationally. It is also involved in the co-generation of power; manufacture of industrial alcohol and ethanol; and production of hand sanitizers. The company was formerly known as Dwarka Sugar Limited and changed its name to Dwarikesh Sugar Industries Limited in 1994. Dwarikesh Sugar Industries Limited was incorporated in 1993 and is based in Mumbai, India.

How the Company Makes Money

Dwarikesh Sugar Industries Ltd. generates revenue primarily through the sale of sugar, which constitutes its main product line. The company also earns significant income from the sale of by-products such as molasses and ethanol, which are used in various industries including food and beverage, pharmaceuticals, and biofuels. Another critical revenue stream comes from the generation and sale of electricity produced from bagasse, a fibrous residue from sugarcane. Additionally, DWARKESH may benefit from government subsidies and incentives related to biofuel production and renewable energy initiatives. Strategic partnerships with agricultural producers and distribution networks further enhance its market reach and profitability.

Dwarikesh Sugar Industries Ltd. Financial Statement Overview

Summary

Dwarikesh Sugar Industries Ltd. faces challenges with fluctuating revenues and profitability pressures, reflected in declining profit margins and unstable cash flows. High leverage adds financial risk, although the equity base provides some stability. Improvement in Free Cash Flow is a positive sign, but the company needs to address cash flow volatility and leverage to enhance its financial health.

Income Statement

Dwarikesh Sugar Industries Ltd. has experienced fluctuating revenue trends with a notable decline in Total Revenue in the most recent year. Gross Profit Margin has decreased significantly over the years, indicating pressure on profitability. Net Profit Margin has also weakened, suggesting challenges in cost management or increased expenses. Despite these challenges, EBIT and EBITDA margins have remained relatively stable, indicating some operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio remains high, reflecting significant leverage, which could pose financial risks if earnings do not stabilize. Return on Equity has been declining, which may concern investors seeking high returns. However, the Equity Ratio indicates a solid proportion of equity financing relative to assets, providing some stability.

Cash Flow

Operating Cash Flow has been volatile, with a substantial decline in the latest year. Although Free Cash Flow has shown improvement recently, the overall inconsistency in cash generation could signal potential liquidity issues. The Operating Cash Flow to Net Income Ratio has decreased, indicating less cash is being generated relative to reported net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.23B	13.59B	17.10B	21.03B	19.74B	18.39B
Gross Profit	2.54B	1.67B	4.30B	4.48B	4.81B	3.91B
EBITDA	1.21B	1.20B	2.16B	2.27B	2.90B	2.03B
Net Income	236.78M	233.36M	835.17M	1.05B	1.55B	915.38M
Balance Sheet
Total Assets	0.00	14.63B	14.15B	12.80B	14.20B	14.45B
Cash, Cash Equivalents and Short-Term Investments	822.51M	831.99M	7.71M	6.68M	2.33M	3.48M
Total Debt	0.00	5.07B	4.56B	3.75B	5.23B	6.07B
Total Liabilities	-8.06B	6.57B	5.93B	5.40B	7.46B	8.67B
Stockholders Equity	8.06B	8.06B	8.22B	7.40B	6.73B	5.79B
Cash Flow
Free Cash Flow	0.00	370.10M	-374.10M	2.15B	1.77B	2.76B
Operating Cash Flow	0.00	494.29M	133.68M	3.14B	3.52B	2.96B
Investing Cash Flow	0.00	-111.87M	-406.67M	-915.06M	-1.75B	-176.24M
Financing Cash Flow	0.00	432.11M	271.97M	-2.22B	-1.78B	-2.80B

Dwarikesh Sugar Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DWARKESH, the sentiment is Positive. The current price of 37.23 is above the 20-day moving average (MA) of 35.70, above the 50-day MA of 35.80, and below the 200-day MA of 41.83, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 53.62 is Neutral, neither overbought nor oversold. The STOCH value of 28.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:DWARKESH.

Dwarikesh Sugar Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UTTAMSUGAR	64 Neutral	₹7.56B	6.79	―	0.95%	19.83%	46.44%
MAGADSUGAR	63 Neutral	₹6.47B	7.48	―	2.49%	8.96%	-19.55%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AVADHSUGAR	60 Neutral	₹7.54B	10.28	―	2.63%	4.95%	-26.77%
DHAMPURSUG	59 Neutral	₹8.11B	11.99	―	―	11.07%	-19.56%
KOTARISUG	49 Neutral	₹2.06B	39.05	―	―	-39.31%	-110.49%
DWARKESH	46 Neutral	₹6.90B	34.92	―	1.34%	11.15%	―

Dwarikesh Sugar Industries Ltd. Corporate Events

Dwarikesh Sugar Closes Trading Window Ahead of December Quarter Results

Dwarikesh Sugar Industries Limited has announced that its trading window for dealing in the company’s securities will be closed for all designated persons, including directors, certain employees and their immediate relatives, from January 1, 2026 until 48 hours after the declaration of its unaudited financial results for the quarter and nine months ended December 31, 2025. In line with SEBI’s insider trading regulations and a recent SEBI circular, the company stated that during this blackout period the Permanent Account Numbers (PAN) of designated persons will be frozen by the National Securities Depository Limited for trading in the company’s equity shares, reinforcing compliance controls and tightening safeguards against insider trading ahead of the upcoming results announcement.