Dwarikesh Sugar Industries Ltd. (DWARKESH) AI Stock Analysis

• Market Cap: ₹7.35B
• Dividend Yield: N/A
• Average Volume (3M): 41.41K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 1.54
• Revenue Growth: -3.82%
• EPS Growth: -27.46%
• Country: IN
• Employees: 1,443
• Sector: Consumer Defensive
• Sector Strength: 67
• Industry: Food Confectioners
• EPS (TTM): -0.51
• Shares Outstanding: 185,301,470
• 10 Day Avg. Volume: 39,627
• 30 Day Avg. Volume: 41,406
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹41.00
• Price Target Upside: 4.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: ₹41.00 ▲(4.89% Upside)

Dwarikesh Sugar Industries Ltd. shows significant financial and technical challenges. The financial performance is under pressure from declining margins and cash flow instability, while technical indicators suggest bearish momentum. The high P/E ratio raises concerns about valuation. These factors combined result in a cautious outlook for the stock.

Dwarikesh Sugar Industries Ltd. Business Overview & Revenue Model

Company Description

Dwarikesh Sugar Industries Ltd. (DWARKESH) is an integrated sugar company based in India. The company is engaged in the manufacturing and distribution of sugar and allied products, focusing on the production of refined sugar, molasses, and ethanol. With state-of-the-art manufacturing facilities, Dwarikesh Sugar Industries is a key player in the Indian sugar industry, catering to both domestic and international markets.

How the Company Makes Money

Dwarikesh Sugar Industries Ltd. generates revenue primarily through the sale of sugar, which forms the bulk of its income. The company operates several sugar manufacturing plants where sugarcane is processed to produce refined sugar. Besides sugar, the company also produces and sells by-products such as molasses and ethanol, which contribute to its revenue streams. Ethanol production, in particular, benefits from government policies promoting ethanol blending with petrol, thereby providing an additional revenue channel. Furthermore, the company may engage in power generation through cogeneration plants utilizing bagasse, a by-product of sugar production. This allows the company to sell surplus power to the grid, adding to its revenue. Strategic partnerships and supply contracts with domestic and international buyers also play a crucial role in sustaining and expanding its market presence.

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	Mar 2025	Mar 2024	Mar 2022	Mar 2023	Mar 2020
Income Statement
Total Revenue	13.59B	17.10B	19.74B	21.03B	13.36B
Gross Profit	1.67B	4.30B	4.81B	4.48B	2.96B
EBITDA	1.20B	2.16B	2.90B	2.29B	1.36B
Net Income	233.36M	835.17M	1.55B	1.05B	734.54M
Balance Sheet
Total Assets	14.63B	14.15B	14.20B	12.80B	16.09B
Cash, Cash Equivalents and Short-Term Investments	831.99M	7.71M	2.33M	6.68M	19.20M
Total Debt	5.07B	4.56B	5.23B	3.75B	8.28B
Total Liabilities	6.57B	5.93B	7.46B	5.40B	11.26B
Stockholders Equity	8.06B	8.22B	6.73B	7.40B	4.84B
Cash Flow
Free Cash Flow	370.10M	-374.10M	1.77B	2.15B	-1.01B
Operating Cash Flow	494.29M	133.68M	3.52B	3.14B	113.00M
Investing Cash Flow	-111.87M	-406.67M	-1.75B	-915.06M	-1.19B
Financing Cash Flow	432.11M	271.97M	-1.78B	-2.22B	1.09B

Dwarikesh Sugar Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 39.09 is below the 20-day moving average (MA) of 43.46, below the 50-day MA of 46.22, and below the 200-day MA of 48.40, indicating a bearish trend. The MACD of -1.89 indicates Positive momentum. The RSI at 25.99 is Positive, neither overbought nor oversold. The STOCH value of 0.14 is Positive, 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	66 Neutral	₹9.40B	10.64		1.01%	-9.82%	-33.21%
MAGADSUGAR	65 Neutral	₹7.11B	7.23		2.47%	12.18%	-12.51%
AVADHSUGAR	63 Neutral	₹8.62B	12.17		2.32%	-2.77%	-38.21%
DHAMPURSUG	63 Neutral	₹8.42B	16.62		―	-9.79%	-60.65%
KOTARISUG	57 Neutral	₹2.38B	22.81		3.49%	-38.33%	-64.65%
Sector *	53 Neutral	C$5.41B	6.76	11.95%	3.33%	4.99%	-1.01%
DWARKESH	45 Neutral	₹7.35B	31.05		―	-3.82%	-27.46%

Dwarikesh Sugar Industries Ltd. Corporate Events

Dwarikesh Sugar Industries Announces Trading Window Closure

Dwarikesh Sugar Industries Ltd. announced the closure of its trading window for designated persons and their immediate relatives, effective from July 1, 2025, until 48 hours after the declaration of its unaudited financial results for the quarter and year ending June 30, 2025. This measure is in compliance with SEBI regulations to prevent insider trading. Additionally, the PAN of designated persons will be frozen by the National Securities Depository Limited during this period, reflecting the company’s adherence to regulatory requirements and its commitment to maintaining transparency and integrity in its operations.