Dwarikesh Sugar Industries Ltd. (DWARKESH) AI Stock Analysis

• Market Cap: ₹7.82B
• Dividend Yield: 1.23%
• Average Volume (3M): 44.59K
• Price to Earnings (P/E): 51.9
• Beta (1Y): 1.49
• Revenue Growth: 11.15%
• EPS Growth: N/A
• Country: IN
• Employees: 1,443
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): -1.76
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ₹44.00 ▲(7.90% Upside)

The overall stock score of 52 reflects significant financial challenges, including fluctuating revenues and high leverage, which pose risks to financial stability. Technical analysis shows mixed signals, with some potential for upward momentum. Valuation metrics indicate the stock is relatively expensive, with a modest dividend yield. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Sustainable Energy Production

By generating power from bagasse, Dwarikesh enhances its sustainability and operational efficiency, reducing reliance on external energy sources and potentially lowering costs, which can improve long-term profitability.

Diversified Revenue Streams

Dwarikesh's diversified revenue streams from sugar, by-products, and electricity provide resilience against market volatility in any single segment, supporting stable long-term growth and reducing dependency on sugar prices.

Operational Efficiency

Stable EBIT and EBITDA margins indicate operational efficiency, suggesting the company can manage costs effectively despite revenue fluctuations, which is crucial for maintaining profitability over time.

Negative Factors

High Leverage

High leverage increases financial risk, potentially straining cash flows and limiting financial flexibility, which could impact the company's ability to invest in growth or weather economic downturns.

Declining Profit Margins

Decreasing profit margins suggest challenges in cost management or increased expenses, which can erode profitability and reduce the company's competitive edge in the long term.

Fluctuating Revenues

Fluctuating revenues indicate instability in the company's core market, which could hinder long-term planning and investment strategies, affecting overall business growth and investor confidence.

Dwarikesh Sugar Industries Ltd. Business Overview & Revenue Model

Company Description

Dwarikesh Sugar Industries Ltd. (DWARKESH) is a prominent player in the Indian sugar industry, primarily engaged in the production and sale of sugar and its by-products. The company operates sugar mills that process sugarcane into sugar, and it also produces a range of co-products including molasses, bagasse, and ethanol. In addition to sugar manufacturing, DWARKESH is involved in the generation of power from bagasse, contributing to its sustainability and operational efficiency. The company's commitment to quality and innovation positions it as a key supplier in both domestic and international markets.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• Last Price: 40.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 40.78 is below the 20-day moving average (MA) of 41.68, below the 50-day MA of 42.62, and below the 200-day MA of 42.88, indicating a bearish trend. The MACD of -0.61 indicates Positive momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 49.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	65 Neutral	₹9.03B	8.02	―	1.08%	19.83%	46.44%
MAGADSUGAR	63 Neutral	₹7.67B	7.80	―	2.52%	8.96%	-19.55%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AVADHSUGAR	60 Neutral	₹7.69B	12.13	―	2.63%	4.95%	-26.77%
DHAMPURSUG	59 Neutral	₹8.10B	14.45	―	―	11.07%	-19.56%
DWARKESH	52 Neutral	₹7.82B	51.94	―	1.23%	11.15%	―
KOTARISUG	49 Neutral	₹2.53B	20.77	―	―	-39.31%	-110.49%

Dwarikesh Sugar Industries Ltd. Corporate Events

Dwarikesh Sugar Industries Releases Q2 and H1 FY26 Investor Presentation

Dwarikesh Sugar Industries Ltd. has released its investor presentation for the second quarter and half-year ending September 30, 2025, in compliance with SEBI regulations. This disclosure aims to provide stakeholders with insights into the company’s performance, potentially impacting its market positioning and stakeholder interests.